Brokered Treasury vs TreasuryDirect (2026): Picking the Right Platform
| Product | Rate | Source, as of |
|---|---|---|
| 4-week / 13-week / 26-week / 52-week T-bill | 3.97% / 4.18% / 4.36% / 4.48% | U.S. Treasury bill rates (coupon equivalent), 9/25/2026 |
| 5-year Treasury | 4.98% | U.S. Treasury par yield curve, 9/25/2026 |
| 10-year Treasury | 5.17% | U.S. Treasury par yield curve, 9/25/2026 |
| I bond (bought May, Oct 2026) | 4.26% composite (0.90% fixed) | TreasuryDirect, rates for May 2026, October 2026 |
| EE bond (bought May, Oct 2026) | 2.40% | TreasuryDirect |
| A-rated 5-year MYGA (benchmark) | 5.50-6.05% | public carrier rate sheets, 10/14/2026 |
Auction yields are identical at TreasuryDirect and brokerages; only the wrapper differs. New I bond rates are announced each May 1 and November 1.
Treasury note vs MYGA, after tax
What $100,000 earns in 5 years: treasury note vs MYGA, after tax
Rates used: Treasury note 5.06%, the 5-year Treasury par yield (U.S. Treasury, October 2, 2026); Treasury interest is free of state tax; change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| Treasury note, interest taxed every year | $121,354 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the treasury note, after tax | $4,781 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. Treasury interest is free of state tax, so state tax applies to the MYGA only. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. A MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
Same auction, same yield, different wrapper
When the Treasury auctions a 13-week bill on Monday, the clearing yield is identical whether you bid through TreasuryDirect or through Fidelity, Schwab, Vanguard, or E*Trade. Non-competitive bids accept the auction-clearing rate, with no markup. The economics are identical. The differences are in workflow, tax administration, and what you can do AFTER you own the bond.
| Feature | TreasuryDirect.gov | Brokerage (Fidelity/Schwab) |
|---|---|---|
| New-issue auction cost | $0 | $0 (commission-free) |
| Secondary-market trading | Not available | Available with small mark-up |
| Minimum (new-issue) | $100 | $100-$1,000 |
| I-Bonds (Series I) | Available | Not available |
| EE Bonds (Series EE) | Available | Not available |
| Selling before maturity | Transfer first (1-2 weeks), then sell | Same-day click |
| Auto-reinvest | Yes, 2-year max | Yes, longer |
| 1099-INT delivery | Separate from any other 1099s | Bundled with portfolio |
| Mobile app | None | Full-featured |
| Customer service | Slow, document-heavy | Phone, chat, branch |
| Treasury ETFs (SGOV/BIL) | Not available | Available |
| Direct registered ownership | Yes (book entry, in your name) | Held in street name |
| Estate transfer | Beneficiary registration form | Standard brokerage transfer-on-death |
Rates expire like milk.
The best MYGA, CD and savings rates change every few weeks. Get a short email when a rate on this page changes.
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When brokered Treasury purchase wins
- You already have a brokerage account. Buying Treasuries at Fidelity/Schwab adds zero friction: same login, same statement, same tax document.
- You might want to sell before maturity. A click vs a 1-2 week transfer. If rates drop and you want to capture the capital gain, the brokerage path is the only practical option.
- You want secondary-market exposure. Buying off-the-run Treasuries (issued 6+ months ago) sometimes nets 5-15 bps of additional yield. Only available at brokerages.
- You want Treasury ETFs (SGOV, BIL, USFR). These are exchange-traded funds, only at brokerages.
- You manage 10+ securities. Brokerage portfolio tools scale; TreasuryDirect's don't.
- You file taxes via TurboTax/H&R Block. Brokerage 1099s auto-import. TreasuryDirect 1099s are PDF downloads you re-enter.
When TreasuryDirect wins
- You want I-Bonds. Only available electronically on TreasuryDirect. Buying paper I bonds with a tax refund ended January 1, 2025.
- You want EE Bonds. Same as above.
- You don't have a brokerage and don't want one. If your only investment account is a 401(k) through work, TreasuryDirect is the lowest-friction way to buy Treasuries.
- You're under $1,000 per purchase. $100 minimum vs $1,000 at some brokerages.
- You want truly direct ownership. TreasuryDirect securities are book-entry in your name. Brokerage holdings are in street name (held by the brokerage as nominee). Functionally equivalent in 99% of scenarios but legally distinct.
- You want auto-reinvest with minimal setup. TreasuryDirect's auto-reinvest is mature and reliable.
The hybrid approach (most investors)
Many investors do both:
- TreasuryDirect for I-Bonds, EE Bonds, and a simple 4-week or 13-week auto-reinvest T-bill ladder for emergency cash.
- Brokerage for everything else: longer-dated Treasuries, TIPS, secondary-market trading, and ETFs.
Brokerage-by-brokerage notes
- Fidelity: $100 minimum on most new-issue auctions, weekly Treasury auction calendar in Fixed Income tab, auto-reinvest available, secondary market trading commission-free with small markup (typically 1-2 cents per $100 face).
- Schwab: $1,000 minimum on new-issue, Bond Source platform competitive on secondary, auto-reinvest available.
- Vanguard: $1,000 minimum, somewhat older bond UX but reliable, no commission on new-issue.
- E*Trade: $1,000 minimum, decent secondary-market liquidity.
- Robinhood: Recently added Treasury access, $1 minimum. Use with caution. The platform's not designed for serious fixed-income work.
Moving Treasuries between TreasuryDirect and a broker: the exact steps
TreasuryDirect cannot sell anything. To sell before maturity you move the security into the commercial book-entry system at a bank or broker and sell it there (TreasuryDirect, Selling marketable securities). The rules that trip people up:
| Rule | What it says | Source |
|---|---|---|
| 45-day hold | A marketable security bought in TreasuryDirect must stay 45 days before you sell or transfer it. 4-week bills bought there can never be transferred. | TreasuryDirect FAQ |
| Minimum | $1,000 per transfer; on a partial transfer, at least $1,000 must stay in the security. | TreasuryDirect User Guide 221-230 |
| Reinvestments | All scheduled reinvestments tied to the transferred security are cancelled. | FS Form 5511 (rev. March 2026) |
| Savings bonds | I and EE bonds cannot go to a broker; the bank/broker section of the form "does NOT apply to savings bonds." | FS Form 5511 (rev. March 2026) |
| Paper form signature | FS Form 5511 must be signed in front of a certifying officer; "Notary certification is not acceptable." | FS Form 5511 (rev. March 2026) |
| Legacy Treasury Direct | Securities in the old Legacy system move on Form 5179, mailed as the form directs. | TreasuryDirect, Transferring from one system to another |
TreasuryDirect to your broker (TreasuryDirect, Transferring from one system to another):
- Call your broker first and get four items: the firm's wire name, its ABA routing number for Treasury securities, the agent or broker name and phone, and the account name and number the security should land in.
- In TreasuryDirect, go to ManageDirect, pick the security, and choose External Transfer. Enter the four items. You get a confirmation number starting with "K."
- Watch your brokerage account for the position, then place the sell order there. Wrong wire details, or a request sent just before a Closed Book Period, can get the transfer rejected or delayed (FS Form 5511).
Your broker to TreasuryDirect (TreasuryDirect, Transferring from one system to another): open a TreasuryDirect account first, then give your broker the receiving bank name TREASURYDIRECT (all caps, no spaces), ABA number 051736158, and your TreasuryDirect account number.
Planning point: if any of the money might be needed in the first six weeks, the 45-day hold alone decides it. Buy that slice at the brokerage.
The MYGA contrast (for cash beyond 12 months)
Whether you buy Treasuries through TreasuryDirect or through a brokerage, you're earning the same auction yields: 3.97-4.48% on bills, 4.98% on the 5-year, 5.17% on the 10-year (U.S. Treasury, September 25, 2026). A-rated 5-year MYGAs topped out around 5.50-6.05% on October 14, 2026 (public carrier rate sheets), roughly 80-100 basis points over the 5-year Treasury, tax-deferred. The Treasury wrapper choice (TreasuryDirect vs brokerage) is irrelevant if you're picking the wrong instrument for the time horizon.
FAQ
Is the yield really identical at TreasuryDirect and brokerage?
Yes, on new-issue auctions. Both submit non-competitive bids that accept the auction-clearing yield. Brokerages may add a few basis points of bid-ask spread on secondary-market trades, but on new issues, the price is identical.
Why would I use TreasuryDirect at all?
I-Bonds and EE Bonds. That's the main reason. Also for very small ladders ($100-$1,000 per purchase) and for investors who don't otherwise have a brokerage account.
Can I move Treasuries between TreasuryDirect and a brokerage?
Yes. Use TreasuryDirect's 'Transfer to External Account' or your brokerage's 'Transfer-In' service. Takes 1-2 weeks. There's no tax event.
Does my brokerage charge a fee on Treasury auctions?
All major U.S. brokerages (Fidelity, Schwab, Vanguard, E*Trade, Merrill) offer commission-free new-issue Treasury auctions. Some smaller brokers charge $1-$50; check before placing the order.
Are Treasury ETFs better than direct ownership?
Different. ETFs (SGOV, BIL, USFR, TLT) give you intraday liquidity, automatic reinvestment, and instant diversification across multiple maturities. They cost 3-15 bps in expense ratio. For most retail investors, the ETF is fine. Direct ownership is preferred for: tax-loss harvesting (where rolling individual bonds gives precise control), maturity-date matching for known future cash needs, and avoidance of the expense ratio drag.
Which platform has better customer service?
Brokerages, by a wide margin. Fidelity and Schwab have 24/7 phone support and branch networks. TreasuryDirect support is email-based with multi-day response times and frequently requires notarized documents for account changes.
Can I hold both TreasuryDirect and brokerage Treasuries in the same year?
Yes. They're separate accounts. You'll receive two 1099-INTs (one from each) at tax time. No tax-prep issue beyond the additional form.
Which is better for a trust account?
Brokerage. Trust account setup at Fidelity or Schwab takes 1-2 weeks. TreasuryDirect entity accounts also work but require more documentation upfront and ongoing administration.
Can I transfer I bonds or EE bonds from TreasuryDirect to a brokerage?
No. Savings bonds are non-marketable and stay in TreasuryDirect. FS Form 5511 (rev. March 2026), the TreasuryDirect transfer request, states that its transfer-to-a-financial-institution-or-brokerage section "does NOT apply to savings bonds." You can move them only to another TreasuryDirect account (for example, as a gift), or cash them in TreasuryDirect.
Related reading
- TreasuryDirect.gov full platform review
- T-bills explained
- I-Bonds 2026 review
- Building a Treasury ladder
- 5-year Treasury vs 5-year MYGA
Buying Treasuries is easy. Picking the right instrument for the horizon is the question.
Hans Goldstein, independent licensed insurance producer.
Whether you buy through TreasuryDirect or a brokerage, the yield is the same. The bigger question is whether Treasuries are the right tool for the time horizon. For 3-10 year retirement money, MYGAs from A-rated carriers pay 100-140 bps more, tax-deferred. Worth seeing the math at your actual amount.
Send your details and within one business day you'll get a written side-by-side: the Treasury option vs. the top 3 MYGAs from A-rated carriers at the same term, end-of-term math at your actual dollar amount, and after-tax yield computed at your state bracket. We’ll email it to you.
Holding this money for 3 years or more? This month's best MYGA rates may pay more than a bank CD, and if you already have an annuity quote, request a free, independent second opinion before you sign.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This review reflects publicly available Treasury auction results, TreasuryDirect documentation, and approximate market yields as of the date stated above. Treasury yields change daily; current yields differ from prior auctions and may differ from those shown here. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific security or insurance product. U.S. Treasury securities are backed by the full faith and credit of the United States Government. MYGA references compare Treasury yields against approximate rates from A-rated insurance carriers as of the date stated; carrier rates change monthly. State guaranty fund coverage on annuities is provided by the state insurance department and varies by state (typically $250,000-$300,000 per owner per carrier). Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated annuity carriers; he is NOT a registered investment advisor, broker-dealer, or registered representative, and is not paid by the U.S. Treasury, TreasuryDirect, or any brokerage for this review. No compensation has been received from any third party in connection with this content. Always read the actual offering documents and consult a licensed advisor before purchasing any security or annuity. Tax discussion of 31 U.S.C. §3124 and Internal Revenue Code provisions reflects law as of 2026 and is subject to change.