TreasuryDirect.gov Review (2026), The Honest Platform Assessment

Treasury note vs MYGA, after tax

What $100,000 earns in 5 years: treasury note vs MYGA, after tax

AmountYears3 years5 years7 yearsTreasury note rate (%)Federal bracket10%12%22%24%32%35%37%State 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.

What TreasuryDirect actually is

TreasuryDirect.gov is the U.S. Treasury's direct-to-public portal for buying Treasury securities at issuance. You open an account, link a bank, and submit non-competitive bids at any Treasury auction (T-bills, T-notes, T-bonds, TIPS, FRNs). You can also buy Series I Savings Bonds and Series EE Savings Bonds, which are not available through brokerages and only exist on this platform.

You pay zero markup. The yield you receive is exactly the auction clearing yield, identical to what a Fortune 500 corporate treasurer pays at the same auction. There is no commission, no spread, no expense ratio. This is the lowest-cost way to own Treasury debt.

What it does well

• Zero cost. No fees, no markup, no expense ratio. You're buying directly from the issuer.
• Series I and EE Bonds. These are not available on any brokerage. TreasuryDirect is the only retail electronic distribution channel. (Paper I-Bonds via tax refund are the other option.)
• Auto-reinvest. You can elect to roll proceeds at maturity into a new bill of the same term, up to 2 years of reinvestments per original purchase. Set-and-forget T-bill ladders.
• Low minimum. $100 in $100 increments. Most brokerages require $1,000.
• Unlimited purchase. Non-competitive bids guaranteed filled up to $10M per auction per investor. Above that you submit competitive bids.
• Direct ownership. Securities are registered to your name, not held in street name through a broker.

What it does poorly

• UX from 2005. The interface is genuinely dated: clunky menus, slow page loads, awkward navigation. You can do everything you need, but you'll grumble through it.
• Cannot sell securities. If you bought a 52-week T-bill on TreasuryDirect and need to sell early, you must first transfer the security to a brokerage account, then sell. This takes days. There's no way to sell on TreasuryDirect itself.
• Painful password rules. 8-16 characters, must include at least one of each category, virtual keyboard for some logins, periodic forced resets. Account recovery is slow and document-heavy.
• No mobile app. Web only. Mobile-web works but isn't optimized.
• Separate 1099-INT. You'll get a 1099 from TreasuryDirect in addition to your brokerage 1099s. Multiple 1099s = more tax-prep complexity.
• No portfolio view. You can see what you own, but there's no consolidated yield, no maturity timeline view, no laddering tools.

TreasuryDirect vs brokerage purchase: actual differences

Who should use TreasuryDirect

1. I-Bond buyers. If you want electronic Series I Bonds ($10K/person/year limit), TreasuryDirect is the only path.
2. Auto-reinvest T-bill ladderers. Set up a rolling 4-week or 13-week T-bill ladder with auto-reinvest and you barely need to log in again.
3. Investors with no brokerage account. If you don't already have a Fidelity or Schwab account and don't want to open one just for Treasuries, TreasuryDirect is fine.
4. Sub-$1,000 buyers. The $100 minimum vs $1,000 at some brokerages matters at small sizes.

Who should NOT use TreasuryDirect

1. Anyone who might sell early. If you bought a 52-week T-bill and rates drop, you may want to capture the capital gain by selling. TreasuryDirect can't do that.
2. Anyone with an existing brokerage. Fidelity, Schwab, Vanguard, and E*Trade all offer commission-free new-issue Treasury auctions. Same yield. Better UX. Consolidated 1099.
3. Anyone who values tax-prep simplicity. An additional 1099-INT from TreasuryDirect adds annual friction.
4. Anyone managing more than 5-10 securities. The platform's portfolio view doesn't scale.

What you can buy on TreasuryDirect, with current yields

Source: U.S. Treasury Daily Treasury Bill Rates and Daily Par Yield Curve Rates, October 2, 2026. Auction yields differ slightly from these market yields.

From my desk: the TreasuryDirect problems I see

I am a licensed insurance producer, not a bond salesman, but clients bring me their TreasuryDirect holdings every month when they compare safe-money options. Two issues come up again and again. First, getting money out early: you have to transfer the security to a broker before you can sell, which takes time you may not have. Second, estates: when an owner dies with no beneficiary on the securities, the family faces a slow, paper-heavy claim. TreasuryDirect lets you add a beneficiary to each security; do it.

Example (Treasury data, October 2, 2026): a client holds $100,000 in 52-week bills bought at TreasuryDirect at 4.46% and needs $40,000 for a roof in month 5. At a brokerage, she sells $40,000 the same day. At TreasuryDirect, she starts a transfer first and waits. For money that might be needed early, I would buy the bills at a brokerage, or keep that slice in a Treasury money market fund. Step-by-step buying help is in how to buy on TreasuryDirect, and the broker comparison is in brokered Treasury vs TreasuryDirect. New to bills? Start with Treasury bills explained.

The MYGA contrast

TreasuryDirect is the right tool for cash you might need within a year. It is the wrong tool for retirement money you can confidently leave for 3-10 years. As of September 24, 2026, A-rated-or-better insurers were paying roughly 5.80% to 6.00% on 5-year MYGAs (AnnuityRateWatch carrier data), versus a 5.06% par yield on the 5-year Treasury (U.S. Treasury daily par yield curve, October 2, 2026). On $250K over 5 years, a 5.80% MYGA earns about $11,400 more pre-tax interest than 5.06%, the MYGA rate is guaranteed for the term and backed by the claims-paying ability of the issuing insurer, and it grows tax-deferred, while Treasury interest is taxed federally every year (it is exempt from state income tax). Rates change daily; confirm before you buy. The two instruments serve fundamentally different time horizons.

Opening a TreasuryDirect account: what you need and the 45-day catch

Who can open one. Per the TreasuryDirect FAQ: you must have a valid Social Security Number, be 18 or older and legally competent, have a U.S. address of record, and have an account at a U.S. bank or credit union that accepts ACH debits and credits. There is no fee to open.

1. Gather five things: your SSN, your U.S. address, the routing and account number of the checking or savings account you will fund from, an email address, and a current browser.
2. Type treasurydirect.gov yourself and choose to open an Individual account.
3. Submit your details. TreasuryDirect says it verifies your personal information within one minute. If it cannot verify you online, it offers a printable authentication form you mail in, which adds days or weeks.
4. Set your password and security questions. Your account number is emailed only after this step; keep that email.
5. Add a beneficiary or second owner to each security as you buy it (see the FAQ below).
6. Buy: pick the security, amount ($100 minimum, $100 increments) and reinvestment choice. The money is pulled from your bank by ACH on the issue date.

The 45-day catch. A marketable security bought in TreasuryDirect must stay there 45 days before you can sell or transfer it (TreasuryDirect, Selling marketable securities), and an online transfer out must be at least $1,000 while leaving at least $1,000 in the security if partial (TreasuryDirect User Guide 221-230). Here is what that means by bill term:

Sources: 45-day rule and 4-week bill restriction, TreasuryDirect FAQ; day counts are the standard bill terms. If there is any chance you need the money inside 45 days, buy at a brokerage instead. The full transfer procedure is in moving Treasuries out of TreasuryDirect.

FAQ

Does TreasuryDirect charge fees?

No. Zero markup, zero commissions, zero account fees, zero expense ratio. The Treasury operates it as a public service, not a profit center.

Can I sell T-bills on TreasuryDirect?

No. You can hold to maturity, or you can transfer the security to a brokerage account (takes 1-2 weeks via the 'Transfer to Broker' process) and then sell from the brokerage.

Can I buy Treasury ETFs on TreasuryDirect?

No. TreasuryDirect only sells Treasury-issued securities directly. ETFs (SGOV, BIL, USFR) are exchange-traded funds available only on brokerage platforms.

How do I open a TreasuryDirect account?

Go to treasurydirect.gov, click 'Open an Account,' provide Social Security number, U.S. address, bank routing/account, and answer identity-verification questions. Account opens within minutes. First-time purchase typically takes 1-3 business days for bank ACH verification.

Is my money safe at TreasuryDirect?

Yes. The securities you hold are direct obligations of the U.S. Treasury, the same backing as the federal government itself. The platform itself is operated by the Treasury and Federal Reserve.

Can I have a joint TreasuryDirect account?

Not in the same way as a joint bank account. You can register securities with co-owners or beneficiaries, but each individual must have their own Primary account.

What's the difference between Primary and Linked accounts?

Primary = adult individual account. Linked = minor account (for under-18 holdings), entity account (LLC/trust), or conversion account (for paper bonds converted to electronic). Each Linked account is owned by a Primary.

Can a trust own securities on TreasuryDirect?

Yes, via a Linked Entity Account. The trust must have its own EIN, and the trustee opens the linked account under their personal Primary account. Documentation requirements are real. Allow 2-4 weeks setup time.

Is TreasuryDirect.gov the official site?

Yes. TreasuryDirect.gov is run by the U.S. Department of the Treasury. Type the address yourself rather than following links in emails or texts.

Can I name a beneficiary on TreasuryDirect?

Yes. You can add a beneficiary to securities held in your TreasuryDirect account, which keeps them out of a slow estate claim if you die.

Where do I find my TreasuryDirect 1099?

Inside your account, not in the mail. TreasuryDirect posts an electronic 1099-INT (and 1099-OID for TIPS) that you print from your account, available by January 31 (TreasuryDirect, Interest Income Reporting for Marketable Treasury Securities). Bill interest lands on the 1099 for the year the bill matures or is sold, not the year you bought it, so a 26-week bill bought in October shows up on next year's form. Each Linked account gets its own 1099.

Related reading

• Brokered Treasuries vs TreasuryDirect, the head-to-head
• T-bills explained
• I-Bonds 2026, only available on TreasuryDirect
• TIPS: also available on TreasuryDirect
• Building a Treasury ladder

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.