Treasury Direct order--not enough $ in my account

[lucky penny]

What happens if there's not enough money in your bank account on the settlement date for a Treasury Direct order you placed? Totally my fault-- the settlement date is Tuesday & I didn't realize Monday is a holiday. Will the order simply not be filled? Will Treasury Direct issue a warning or penalty? Will my bank charge for an overdraft?

I assume it's too late to cancel the order but I'll check.

Ugh.

 

[lucky penny]

I've been anxious about this. Here's a response I found in the bogleheads community:

How do I place a bid for marketable securities in TreasuryDirect?
TreasuryDirect account holders simply go to Buy Direct and request a purchase by entering their purchase information. They may choose the security they wish to purchase from the list of available securities. Because noncompetitive auction bids are automatically accepted, the purchase is made according to the account holder's instructions. On the issue date, the designated financial institution account or Zero-Percent C of I is debited for the purchase price (including any premium and/or accrued interest). Purchase requests are rejected if funds are insufficient to cover the cost of the securities.

 

[BlueberryPie]

yeah the purchase just fails and that's it.
it happened to me once when I forgot TD draws from a savings that I don't use except for TD because changing bank accounts is an ordeal.

 

[lucky penny]

UPDATE: To my surprise, the purchase went through!

The Treasury Direct issue/settlement date was yesterday but the funds I transferred from Ally weren't posted in my checking account until 5:00 AM today. When I initiated the transfer over the weekend, Ally indicated the funds would be debited on Tuesday & wouldn't show up in my account until Wednesday (which is what happened), so I thought the purchase would be rejected since technically the money didn't arrive until the early hours of the next day. The process was more forgiving than I expected.

Nice to know that's how it works, but for the future that's cutting it too close for comfort.

 

[audreyh1]

Wow! Lucky break.

 

[Koolau]

As I often say, "Better lucky than good." Glad to hear it all w*rked out for you.