Redeeming Treasury Marketable Securities — TreasuryDirect (2024)

FAQs

How do I transfer Treasury marketable securities out of my TreasuryDirect account? ›

You cannot sell a Treasury marketable security directly from your TreasuryDirect account. To sell a Treasury marketable security that is in your TreasuryDirect account, you must transfer the security to a broker/dealer account. The broker/dealer can sell the security for you.

To redeem your bill in TreasuryDirect you don't need to take action. If you do not provide instructions to deposit the security's principal into your C of I, we deposit the principal into your designated bank account. The deposit is made on the day your security matures.

You can hold Treasury bills until they mature or sell them before they mature. To sell a bill you hold in TreasuryDirect or Legacy TreasuryDirect, first transfer the bill to a bank, broker, or dealer, then ask the bank, broker, or dealer to sell the bill for you.

You can cash in (redeem) your I bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest.

How do I cash my electronic bonds? Go to your TreasuryDirect account. Go to ManageDirect. Use the link for cashing securities.

What Treasury marketable securities may I purchase in my TreasuryDirect account? You may purchase Bills, Notes, Bonds, FRNs, and TIPS during scheduled auctions through your TreasuryDirect account.

Redemption of T-bills

Can I redeem T-bills before maturity? No, you are not able to redeem your T-bills prior to maturity. However, you can sell your T-bills in the secondary market through DBS, OCBC or UOB by visiting their branches. You should indicate whether you are using cash, SRS or CPFIS funds.

We sell Treasury Bills (Bills) for terms ranging from four weeks to 52 weeks. Bills are sold at a discount or at par (face value). When the bill matures, you are paid its face value. You can hold a bill until it matures or sell it before it matures.

Where do I cash in a savings bond? You can cash paper bonds at a bank or through the U.S. Department of the Treasury's TreasuryDirect website. Not all banks offer the service, and many only provide it if you are an account holder, according to a NerdWallet analysis of the 20 largest U.S. banks.

We sell Treasury Notes for a term of 2, 3, 5, 7, or 10 years. Notes pay a fixed rate of interest every six months until they mature. You can hold a note until it matures or sell it before it matures.

How long does it take to get money from TreasuryDirect? ›

You just bought a security from the U.S. Treasury. Securities are generally issued to your account within two business days of the purchase date for savings bonds or within one week of the auction date for Bills, Notes, Bonds, FRNs, and TIPS.

If a bond is redeemed before five years, the holder loses the last three months of interest. Occasionally, bond owners hold onto bonds after they have reached maturity and are no longer earning interest. These outstanding but unredeemed bonds are called Matured Unredeemed Debt (MUD) .

The interest earned by purchasing and holding savings bonds is subject to federal tax at the time the bonds are redeemed. However, interest earned on savings bonds is not taxable at the state or local level.

You can cash in an I bond after a year, but if you withdraw sooner than five years, you'll pay a penalty of the last three months' interest. Because your rate changes every six months, it's smart to withdraw when your penalty will be based on a lower rate—and avoid cashing out when you'd be forfeiting a high rate.

It's possible to redeem a savings bond as soon as one year after it's purchased, but it's usually wise to wait at least five years so you don't lose the last three months of interest when you cash it in. For example, if you redeem a bond after 24 months, you'll only receive 21 months of interest.

We sell Treasury Bills (Bills) for terms ranging from four weeks to 52 weeks. Bills are sold at a discount or at par (face value). When the bill matures, you are paid its face value. You can hold a bill until it matures or sell it before it matures.

TreasuryDirect customers:

Our call center hours are Monday-Friday, 8am-5pm ET. You may reach us at 844-284-2676.

(vii) In order for the beneficiary to obtain the security or the redemption proceeds after the death of the owner, the beneficiary must provide proof of death of the owner. If the beneficiary has a TreasuryDirect account, the security will be transferred to that account.