Redeem/Reinvest Treasury Bills — TreasuryDirect (2024)

FAQs

What happens when a T-bill is reinvested? ›

Bills can be scheduled for reinvestment for up to two years; other eligible Treasury marketable securities can be scheduled to reinvest one time. When your bill matures, the proceeds will be reinvested or used to purchase the next available security of the same type and term as the original purchase.

Log into your primary TreasuryDirect® account. Click the ManageDirect tab at the top of the page. Under the heading Manage My Securities, click "Edit" reinvestments. On the Reinvestment Edit page, select the button for the security type you wish to edit and click "Submit".

To redeem your bill in TreasuryDirect you don't need to take action. If you do not provide instructions to deposit the security's principal into your C of I, we deposit the principal into your designated bank account. The deposit is made on the day your security matures.

Redeeming from TreasuryDirect

If you have not told us to reinvest the money from a matured security, we pay you the value of the security automatically on the day the security matures.

Reinvestments will be limited at any one time to 25 times for a 4-week bill, 7 times for a 13-week bill, 3 times for a 26-week bill, and once for all other marketable security types. (e) Canceling reinvestments.

We sell Treasury Bills (Bills) for terms ranging from four weeks to 52 weeks. Bills are sold at a discount or at par (face value). When the bill matures, you are paid its face value. You can hold a bill until it matures or sell it before it matures.

Redemption of T-bills

Can I redeem T-bills before maturity? No, you are not able to redeem your T-bills prior to maturity. However, you can sell your T-bills in the secondary market through DBS, OCBC or UOB by visiting their branches. You should indicate whether you are using cash, SRS or CPFIS funds.

TreasuryDirect requires Treasury marketable securities be held for 45 days following original issue before they may be transferred. 4-Week Bills bought at original issue in TreasuryDirect may not be transferred at all because the term of the security is less than 45 days.

If the amount of Treasury coupon principal payments for a given month is greater than the monthly cap, then Treasury bill principal payments will be fully rolled over that month.

The only interest payment to you occurs when your bill matures. At that time, you are paid the par amount (also called face value) of the bill.

How do I redeem my treasury bonds? ›

How do I cash my electronic bonds? Go to your TreasuryDirect account. Go to ManageDirect. Use the link for cashing securities.

Are Treasury bills taxed as capital gains? Normally no. However, if you buy a T-bill in the secondary market and then achieve a profit, you may be liable for capital gains depending on your exact purchase price.

Reinvestment means using the redemption proceeds of a maturing Treasury marketable security to automatically purchase a new Treasury marketable security of the same type, if available.

If you have matured Treasury bonds on a TreasuryDirect account, you can cash out the face value of the bonds directly from your account. If you bought the bonds from a bank, broker, or dealer and they've reached their maturity date, they will give you the money, usually automatically.

Go to your TreasuryDirect account. Choose the Manage Direct tab. Identify the security or securities you want to transfer. Choose External Transfer.

Maturity of T-bills

On maturity, the principal amount will be credited to your respective account by the end of the day, typically after 6pm. For cash applications: The principal amount will be credited to your designated Direct Crediting Service bank account.

T-bills pay a fixed rate of interest, which can provide a stable income. However, if interest rates rise, existing T-bills fall out of favor since their return is less than the market. T-bills have interest rate risk, which means there is a risk that existing bondholders might lose out on higher rates in the future.

Automatically reinvest the principal on your maturing CDs and U.S. Treasury securities.

Conclusion. The interest income earned on Treasury bills is taxable at the federal level, and earnings from Treasury bills sold on the secondary market can be taxed via capital gains taxes.