How to Buy Treasuries on TreasuryDirect — Step-by-Step Account Setup and Auction Guide

Why TreasuryDirect — and when to use a broker instead

TreasuryDirect is the U.S. Treasury's direct-to-investor portal. You buy Treasuries from the government, the government holds them for you, and you redeem at maturity. Zero broker commissions, zero counter-party risk beyond the Treasury itself.

Use TreasuryDirect for:

• Series I Savings Bonds (I-Bonds): The ONLY way to buy I-Bonds. No broker offers them. $10,000/yr per SSN electronic limit + $5,000/yr via tax refund.
• Series EE Savings Bonds: Same — TreasuryDirect only.
• Buy-and-hold T-bill/note/bond at auction: Zero commission, exact auction yield (no broker spread).
• Large amounts ($100K+) you plan to hold to maturity: No SIPC limit concern, no brokerage middleman.

Use a brokerage (Fidelity / Schwab / Vanguard) for:

• Active trading of Treasuries (secondary market liquidity)
• Mixing Treasury holdings with other investments in one account
• Selling before maturity (TreasuryDirect requires a transfer to a broker first, which takes 5-7 business days)
• IRA-held Treasuries (TreasuryDirect doesn't offer IRA accounts)
• Building a ladder you might want to rebalance dynamically

Most retail buyers use TreasuryDirect for I-Bonds and savings bonds, then use a brokerage for marketable Treasuries. The combination gives access to every Treasury product without overpaying.

Step 1: Open a TreasuryDirect account

TreasuryDirect's account-opening process is famously clunky. Set aside 30 minutes for the initial form and budget 2-7 business days for ID verification.

What you need before starting

• Social Security Number
• U.S. street address (no PO boxes)
• Driver's license or passport number
• A U.S. bank account (checking or savings) with routing and account numbers — this becomes your "linked bank account"
• Email address

The actual steps

1. Go to treasurydirect.gov
2. Click "Open an Account" → "Individual"
3. Select "Continue" through the welcome page
4. Enter SSN, name, DOB, U.S. address, phone
5. Choose username and password (security questions, image-pick step that frustrates everyone)
6. Provide bank account info (routing + account number, account type)
7. Accept disclosure documents
8. Submit
9. Receive Account Number (8 digits) on the confirmation screen — save this, it's required for every future login alongside your password

The verification gotcha

TreasuryDirect uses an automated identity-verification system. About 40% of new accounts get flagged for additional verification — you'll receive a letter (paper mail) with a form called FS Form 5444 requiring a notarized or bank-officer-certified signature. You mail it back. The full verification cycle adds 5-10 business days.

If you want to avoid the wait: visit your bank in person, have a banker sign the "medallion signature guarantee" on the form, mail it overnight (with tracking). The fastest TreasuryDirect account opening on record is roughly 7 business days from start.

Step 2: Understanding the auction calendar

Treasuries are sold by the U.S. Treasury through scheduled auctions. New issues are sold at auction; existing issues trade on the secondary market.

Auction frequency by Treasury type:

The official auction schedule is published quarterly at treasurydirect.gov/auctions. Most retail investors only need to know: T-bills happen every Monday/Thursday, notes/bonds happen monthly.

Non-competitive bids (the only kind retail uses)

TreasuryDirect retail accounts can only submit non-competitive bids. This means you accept whatever yield the auction clears at; you don't specify a price. You're guaranteed a fill up to $10 million per auction.

To bid: log in to TreasuryDirect, navigate to BuyDirect, choose the security type, choose the auction date, enter the amount (minimum $100), select source of funds (bank account or maturing security proceeds). Done.

The auction clears within 24 hours of close. You can see the awarded yield in your account by the next business day.

Step 3: Buying step-by-step (worked example)

Goal: Buy a 13-week T-bill at the next available auction. $25,000 of cash sitting in your linked bank account.

1. Log in to treasurydirect.gov with username + Account Number + password
2. From the "BuyDirect" menu, click "Treasury Bills"
3. Choose "13-Week"
4. The next available auction date will display (e.g., "Monday, July 8, 2026")
5. Enter purchase amount: $25,000.00
6. Choose source: "Bank Account" (your linked bank)
7. Schedule type: "One-time purchase" (or "Recurring" for auto-rollover, useful for a ladder)
8. Review and submit

What happens next:

• Auction date (Monday): TreasuryDirect submits your non-competitive bid; you're guaranteed a fill
• Settlement date (Thursday, 3 days later): $24,712 (approximate, based on 4.30% auction yield) is debited from your bank account; the $25,000-face-value T-bill appears in your TreasuryDirect holdings
• Maturity date (13 weeks later): $25,000 is auto-deposited to your bank account (or you can choose auto-reinvest into the next 13-week bill)

The $288 discount ($25,000 face minus $24,712 paid) IS your interest income, reported on Form 1099-INT in January.

Primary auction vs secondary market yields

Auctioned Treasuries clear at a market-determined yield. Secondary-market Treasuries (already-issued Treasuries trading among investors) trade at slightly different yields based on supply/demand for that specific maturity.

The two markets are nearly identical in yield for liquid issues. The difference is typically 1-5 bps. For retail investors:

• Auction is cheaper for buy-and-hold purposes (no broker markup)
• Secondary market is more flexible — you can buy any maturity any day, not just the auction schedule
• Brokers add a markup on secondary — typically 1-10 bps depending on size. Fidelity and Schwab are the most competitive (1-3 bps on standard Treasuries); smaller brokers can mark up 10-20 bps

Practical recommendation: Use TreasuryDirect auctions for I-Bonds and any Treasury you'll hold to maturity. Use Fidelity or Schwab for secondary-market Treasury purchases when you need a specific maturity (e.g., a CD-equivalent that matures the day you need cash for tuition).

Transferring out of TreasuryDirect

The single biggest TreasuryDirect downside: you cannot sell on TreasuryDirect — you can only redeem at maturity or transfer to a broker first.

To sell a Treasury before maturity:

1. Submit FS Form 5511 to transfer the security to your brokerage account
2. Wait 5-7 business days for the transfer to settle
3. Sell the security at your broker (secondary market)

This is fine for an emergency exit but useless for active trading. If you anticipate needing to sell before maturity, buy through a brokerage from day one.

I-Bonds have a different rule: cannot be redeemed in the first 12 months at all. After 12 months, redemption is allowed but loses the last 3 months of interest if held under 5 years. After 5 years, full redemption with no penalty.

TreasuryDirect-only products: I-Bonds and EE Bonds

Two products are sold ONLY through TreasuryDirect — no broker access:

Series I Savings Bond (I-Bond)

• Yield = fixed rate + variable inflation rate (resets every 6 months)
• 2026 fixed rate component: ~1.30% (announced semi-annually)
• $10,000 annual electronic limit per SSN
• Additional $5,000 via tax refund (paper I-Bonds, no longer issued; replaced by electronic with form 8888)
• 12-month minimum hold; 3-month interest penalty if redeemed within 5 years
• State-tax-exempt; federal-tax-deferred until redemption
• Education exclusion: tax-free if used for qualified higher education expenses

See I-Bond vs CD vs TIPS comparison and I-Bond $10K limit workarounds.

Series EE Savings Bond

• Yield = fixed rate (~2.70% currently)
• Guaranteed to double in value at 20 years (effective ~3.5% if held to 20-year mark)
• $10,000 annual electronic limit per SSN
• 30-year maturity; can redeem after 12 months
• State-tax-exempt; federal-tax-deferred
• Less attractive than I-Bonds for most savers

Related reading

• I-Bond vs CD vs TIPS
• I-Bond $10K limit workarounds
• VUSXX Vanguard Treasury MMF
• SNSXX vs SWVXX Schwab comparison
• Brokered CD vs bank CD vs MYGA

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FAQ

Q: Is TreasuryDirect.gov safe?
A: Yes. It's the official portal of the U.S. Treasury, with banking-grade encryption. The biggest risk users face is forgetting their account number or losing access; TreasuryDirect's recovery process is slow and frustrating, so save your credentials securely.

Q: Can I open a TreasuryDirect account for my LLC?
A: Yes, separate entity account type. This is one of the I-Bond stacking strategies — an LLC can buy $10K of I-Bonds per tax year independently of the owner's personal limit. See our I-Bond workarounds page.

Q: How long does TreasuryDirect account verification take?
A: Best case: instantly. Typical case: 2-7 business days. Worst case: 2-3 weeks if flagged for additional verification (FS Form 5444 with notarized signature). Start the process well before any time-sensitive purchase deadline.

Q: Can I buy Treasuries in my IRA via TreasuryDirect?
A: No. TreasuryDirect does not offer IRA account types. To hold Treasuries in an IRA, use a brokerage (Fidelity, Schwab, Vanguard) and purchase on the secondary market or via the broker's auction-participation interface.

Q: What's the minimum Treasury purchase?
A: $100 face value, in $100 increments. The actual cost will be slightly less than face value (the discount represents your interest).

Q: Can I cancel a Treasury auction bid?
A: Yes, until the day before the auction. After the auction settles, you own the security and cannot cancel.

Q: Are Treasury auction yields better or worse than secondary?
A: Within 1-5 bps of each other for liquid issues. Auctions tend to be slightly better for retail buyers because there's no broker markup. Secondary market is more flexible (any maturity, any day).

Q: Do I get a 1099 for TreasuryDirect interest?
A: Yes. TreasuryDirect generates a 1099-INT in January for the prior year's interest. Available in your account history. Treasury interest is state-tax-exempt — report on federal but exclude on state return.

Disclosure

This article is general educational information, not personalized financial, tax, or legal advice. All rates, IRS limits, Social Security PIA factors, IRMAA brackets, FDIC/NCUA coverage, and state guaranty fund coverage figures are current as of the publication date and subject to change. IRMAA brackets and Roth/Traditional IRA limits cited reflect IRS guidance for 2026 and may be updated by the IRS or SSA; confirm current figures at irs.gov and ssa.gov before acting. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated annuity carriers; he does not sell bank CDs, money market funds, or Treasury securities and is not affiliated with any bank, brokerage, or government agency discussed. No compensation has been received from any third party in connection with this article. Bank CDs are FDIC-insured deposit products; credit union share certificates are NCUA-insured; money market funds are SEC-regulated investment products with no FDIC coverage; Treasuries are direct obligations of the U.S. government; MYGAs are insurance contracts backed by carrier balance sheets and state guaranty associations. These are different product categories with different protections, tax treatments, and trade-offs. Always confirm current rates and tax law with the issuer or a CPA before acting.