Please help on TreasuryDirect Account?

[huutrinon]

Hi,
Does anyone have an account with TreasuryDirect to buy bonds directly? I'd like to buy some EE Saving Bonds but most of the banks now do not do it for me. Been reading from the Treasury web site and seems to me this is the only way to buy saving bonds directly now. Do you have any bad experience in buying/selling from the account?
Also, how hard to buy Treasury Bonds, Notes, TIPS, etc..? and is it the better way to save than CDs?

Thanks!!!

 

[OAG]

I have an account and everything has gone well in the past. Actually, perfect system IMO. I have not used the account recently but I assume it is still working fine. It is very easy to buy, link a checking account etc.

The CD part of your question is a bit harder since I am currently CD only right now (Pentagon FCU, Navy FCU and VyStar CU (Florida) Credit Unions. Personally, I like CD's over the Treasury but you have to search for good rates (which are getting pretty hard to find right now).

 

[audreyh1]

I bought IBonds through TreasuryDirect a few years ago. It was straightforward enough. I haven't sold anything yet.

Audrey

 

[haha]

Hi,
Does anyone have an account with TreasuryDirect to buy bonds directly? I'd like to buy some EE Saving Bonds but most of the banks now do not do it for me.

I am curious about what leads you to want EE bonds at this time. Last time I looked, recent overhauls to the EE terms had made them much less attractive than before. Maybe something has changed again?

Ha

 

[Martha]

We use Treasury Direct on occasion. The bad point and the good point is that the security is kind of a pain the patootie.

 

[huutrinon]

Thanks everyone for quick reply.

haha: funny name but i guessed you must be a happy guy all the time. The reason for buying the EE Saving bonds is for my nieces education in the future. It provides a little tax deferred advantages in my opinion. I seems to like it better than the 529 plans just in case they do not want to go to college, and i can cash out early just in case i need it.



Still do not understand why people wants to buy the T-bills, T-Notes versus the CDs...

 

[Alan]

I use Treasury Direct and it is very easy to set up and use. When selling you can sell in whatever amounts you wish. eg you buy a $5,000 I-bond and when you sell (must be at least a year and 3-month penalty if before 5 years) you can sell in whatever increments you want. When making a sale the money is in the bank next working day, or 2 at most.

Latest security features are a pain and a bit over the top.

 

[JohnEyles]

Latest security features are a pain and a bit over the top.

I thought so at first too, but when you consider that this is the
TREASURY of the United Freaking States of America, you gotta
ask yourself "how much security is really too much ?!?"

 

[Maurice]

Latest security features are a pain and a bit over the top.

I thought so at first too, but when you consider that this is the
TREASURY of the United Freaking States of America, you gotta
ask yourself "how much security is really too much ?!?"

I agree with both sentiments!

 

[Alan]

TD Log on Security

My issue with the log on security is that you are issued with a 13 character id which means you have to have it written down - no chance of remembering it, plus you are issued with a "Bingo card" to read off a random code each log in so that has to be kept in your possesion also. You are allowed to create your own complex password which is good, and you get a random virtual keyboard to enter the password from, which is good.

Instead of the card I would have preferred the method HSBC uses where YOU create an 8 digit PIN and each time you log in you are prompted for a random 3 of those 8. I travel a lot and carry my laptop. I can remember a PIN I created but have to carry my card if I want to access TD on the road.

Although it is the US Treasury we are talking about personal accounts, in that if an account is hacked, you have no more access to the US Treasury than the poor slob whose account is now compromised.

 

[Maurice]

I travel a lot and carry my laptop. I can remember a PIN I created but have to carry my card if I want to access TD on the road.

Scan it and keep an electronic copy on your PC. Or type the numbers down into a spreadhseet (and save it with password protection).

 

[Alan]

Scan it and keep an electronic copy on your PC. Or type the numbers down into a spreadhseet (and save it with password protection).

I never thought of that - thanks, I just scanned them onto a seperate tab on the password protected excel workbook I use (saves a lot of typing)

 

[huutrinon]

Thanks all for good info!!!

Question: When you buy bonds, will it deduct directly from your bank account since it asks for the routing number? It is allowed you to include the co-owner or beneficiary just as the paper bonds?

 

[Alan]

Thanks all for good info!!!

Question: When you buy bonds, will it deduct directly from your bank account since it asks for the routing number? It is allowed you to include the co-owner or beneficiary just as the paper bonds?

Once your bank details are entered they are stored in your record and transfers to/from your bank are direct and fast.

Not sure about the beneficiary information - I just sent a query from my account to ask about this. I expect it will be via paper.

 

[audreyh1]

Yes, you can establish co-owner/beneficiary online when you buy a bond.

Yes, they do a direct (electronic) withdrawal from your bank account.

Audrey

 

[huutrinon]

Thanks a bunch! you guys are big help!

 

[Alan]

response from TD on changing beneficiaries and adding co-owners

Hello Alan,
Yes. You may add a second registrant to a converted savings bond that is in your name alone as sole owner. However, there are a few things to remember.
Because the bond has been converted, it is now governed under the regulations found in Part 363, “Regulations Governing Securities Held In TreasuryDirect.”
If the converted savings bond is still held in your Conversion Linked Account (CLA), you only have the option to add another individual as the beneficiary (POD). You cannot add a co-owner (OR) or a secondary owner (WITH) while the bond is in your CLA.
After a bond in sole ownership registration is transferred to your primary account or a custom linked account, you have the option to add either a secondary owner (WITH) or beneficiary (POD). You cannot add a co-owner (OR) because it is not an authorized registration for new securities held in a TreasuryDirect account.
You may change the beneficiary (POD) named on a converted Series EE or Series I bond, whether the bond is held in your primary account, the CLA or a custom linked account. The consent of the beneficiary named on a Series EE or Series I bond is not required to remove his/her name.

So there you have it from the horse's mouth

 

[huutrinon]

Thanks again! I just opened the account and will receive an access card in 2 weeks. Love to do the business with the goverment. Don't ou guys love it!!!

 

[JohnEyles]

So is it just me, or do these guys figure they're above the law and
don't have to send out a 1099 ? I sure haven't gotten one.

At the website, you can go to "Manage Direct" and then down into
"taxes" and it kinda gives you the info, but without really dividing
it into "line" amounts. I guess it's pretty obviously "Treasury Interest".

I'm wondering if they want you to list each bill/bond/etc separately
on your taxes ? It's kinda presented like that.

Of course, I've always grouped mutual funds dividends from one
mutual fund company together as one 1099 in the past (before
I realized you only do that for brokerage accounts) and the IRS
never seemed to mind.

 

[aida2003]

So is it just me, or do these guys figure they're above the law and
don't have to send out a 1099 ? I sure haven't gotten one.

Taxes on interest you accumulate for I-Bonds are deferred until you cash them out.

If your inquiry is about different bonds then I don't know the answer...sorry.

 

[JohnEyles]

So is it just me, or do these guys figure they're above the law and
don't have to send out a 1099 ? I sure haven't gotten one.

At the website, you can go to "Manage Direct" and then down into
"taxes" and it kinda gives you the info, but without really dividing
it into "line" amounts. I guess it's pretty obviously "Treasury Interest".

I'm wondering if they want you to list each bill/bond/etc separately
on your taxes ? It's kinda presented like that.

Of course, I've always grouped mutual funds dividends from one
mutual fund company together as one 1099 in the past (before
I realized you only do that for brokerage accounts) and the IRS
never seemed to mind.

I was talking 3-month and 6-month Treasury Bills.

 

[burch64]

Did you click on "View your 1099 for tax year 2007"?

It lists all your transactions and gives you a bottom line figure.

I cashed some I-bonds and got a 1099 for that (you have to print it yourself) I had some t-bills and got a 1099 for that and I had a separate account inside my main account and I got a 1099 for that.

I admit it is somewhat confusing, you would think they could total them all to one 1099.

 

[retire@40]

I tried logging into my account and found out that it was closed by the US Treasury because it was inactive for 2 years. I thought 2 years was an unreasonably short period of time to close an account, especially with no kind of warning by email or regular mail.

I called and asked them how I would be expected to download a 1099 form from 3 years ago if were to get audited by the IRS and they didn't know.

I had no bonds or other investments sitting in my Treasury Direct account, but it makes me wonder how much money in bonds the government will keep when people "forget" they have an account or die with no paper trail for the beneficiaries.

 

[Alan]

I've only had experience with I-bonds. I only have a 1099 in the years I cash some in, and when I went on line, I found the 1099 no problem. I can't remember if they actually sent one out as this was a couple of years ago.