Can someone please explain Treasury Direct?

[LXEX55]

This is an embaressingly basic question, but can someone explain in real simple terms exactly what Treasury Direct is and what I can purchase through it?

Just as a side note, many years ago I was attending a seminar by the eccentric millionaire Arthur Jones the man who invented Nautilus equipment. He asked for questions, I went up to the mike and asked one. He said to me "son I have always believed that there is no such thing as a stupid question....well, you just proved me wrong." Arthur was not the most patient man.

 

[Lawrencewendall]

Here's what's available to me. I bought some 4 & 8 week T-bills last year but let them expire as I found better places to park my money.

Learn more about Security Types.

Marketable Securities

Bills - Short-term securities of 1 year or less

Notes - Medium-term fixed-principal securities of 2 to 10 years

Bonds - Long-term fixed-principal securities of more than 10 years

TIPS Notes/Bonds - Medium or long-term Treasury Inflation-Protected Securities of 2 to 30 years

FRN - Medium-term Floating Rate Notes

View Tentative Auction Calendar.

View recent auction results.

Savings Bonds (NO Paper Savings Bonds)

Series EE - An accrual-type security with a fixed interest rate

Series I - An accrual-type security with a combination interest rate of a fixed and an inflation rate

Zero-Percent Certificate of Indebtedness

C of I - A non-interest bearing security which can be used to fund TreasuryDirect purchases

 

[rodi]

Treasurydirect.gov is the website where you can purchase, or convert, US government bonds.

My experience with it is limited to one set of transactions. I usually get some TIPS bonds as part of my tax refund. They mail me paper bonds - and I convert them to electronic bonds by going through hoops on the website to create a manifest, then mailing the bonds in. It's a weird process with a subaccount, etc. But once it's completed, the bonds are recorded as yours and no paper to potentially lose.

The website is not user friendly, IMO. But I did eventually figure it out enough to do this every year.

 

[OldShooter]

... what I can purchase through it? ...

You'll get that information but also be aware that bills, notes, bonds, and TIPS are also available through Schwab, Fido, VG, et al. It's as simple as buying anything else in your brokerage account. IIRC at Schwab there is no fee for buying treasury securities on the auction. Personally, I have no reason to go to Treasury Direct and screw around with transferring funds back and forth. Others may feel differently, though.

I have found it very useful to talk to the guys at the Schwab bond desk. They are not paid commissions and are very generous with their time when a customer needs education. In some cases you may pay a small fee for a meat-based order vs a web site order. I have had those fees waived, though. You can also call to get educated and then place the web order yourself.

 

[audreyh1]

I use treasurydirect.gov to purchase and redeem IBonds. I set up an account that links to my bank. Log on, check status like interest payments, purchase or redeem.

 

[jim584672]

I signed up for it a long time ago but don't see the advantage. I can buy Bills in my brokerage account and have total liquidity, if it is in TDirect everything is a pain to move around. Seems more trouble than its worth.

 

[audreyh1]

I signed up for it a long time ago but don't see the advantage. I can buy Bills in my brokerage account and have total liquidity, if it is in TDirect everything is a pain to move around. Seems more trouble than its worth.

Only way to buy IBonds online.

Yes, treasuries I buy through my brokerage.

 

[big-papa]

I use treasurydirect.gov to purchase and redeem IBonds. I set up an account that links to my bank. Log on, check status like interest payments, purchase or redeem.

+1 I use treasurydirect to purchase ibonds once a year and to send in paper ibonds received through my tax refund to be converted to electronic ibonds.

Agree - it's not the most user friendly website, but once you get used to it, it's fine. Pro Tip to save frustration: Never ever use the "go back" feature of your browser to return to the previous page, unless you just like logging in again. Use only the navigation features within treasurydirect to move around....

 

[audreyh1]

It’s very basic but quite straightforward, simple. Which is what I prefer by far.