Redeeming Treasury Marketable Securities — TreasuryDirect (2024)

FAQs

How do I transfer Treasury marketable securities out of my TreasuryDirect account? ›

You cannot sell a Treasury marketable security directly from your TreasuryDirect account. To sell a Treasury marketable security that is in your TreasuryDirect account, you must transfer the security to a broker/dealer account. The broker/dealer can sell the security for you.

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.

A marketable security is a Treasury bill, Treasury note, Treasury bond, TIPS or FRN. Some auctions are the original issue (first time), when a specific CUSIP is sold. Some are additional issue (reopenings), when we sell more of a specific CUSIP that was sold before.

You can cash in (redeem) your I bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest.

What Treasury marketable securities may I purchase in my TreasuryDirect account? You may purchase Bills, Notes, Bonds, FRNs, and TIPS during scheduled auctions through your TreasuryDirect account.

You just bought a security from the U.S. Treasury. Securities are generally issued to your account within two business days of the purchase date for savings bonds or within one week of the auction date for Bills, Notes, Bonds, FRNs, and TIPS.

Redeeming – Getting Your Money When a Treasury Marketable Security Matures. The full term of Treasury marketable securities varies from a few weeks for some bills to 30 years for some bonds and TIPS.

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.

Where do I cash in a savings bond? You can cash paper bonds at a bank or through the U.S. Department of the Treasury's TreasuryDirect website. Not all banks offer the service, and many only provide it if you are an account holder, according to a NerdWallet analysis of the 20 largest U.S. banks.

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.

Do marketable securities count as cash? ›

Marketable securities are typically included in the cash and cash equivalents line item, the first line item on the current assets section of the balance sheet. Moreover, marketable securities can come in the form of equity securities (e.g. ETFs, preferred shares) and debt investments (e.g. money market instruments).

Marketable securities are assets that can be liquidated to cash quickly. These short-term liquid securities can be bought or sold on a public stock exchange or a public bond exchange. These securities tend to mature in a year or less and can be either debt or equity.

The interest earned by purchasing and holding savings bonds is subject to federal tax at the time the bonds are redeemed. However, interest earned on savings bonds is not taxable at the state or local level.

It's possible to redeem a savings bond as soon as one year after it's purchased, but it's usually wise to wait at least five years so you don't lose the last three months of interest when you cash it in. For example, if you redeem a bond after 24 months, you'll only receive 21 months of interest.

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

You can cash in an I bond after a year, but if you withdraw sooner than five years, you'll pay a penalty of the last three months' interest. Because your rate changes every six months, it's smart to withdraw when your penalty will be based on a lower rate—and avoid cashing out when you'd be forfeiting a high rate.

Series EE and Series I savings bonds may not be split. Each savings bond must be transferred in its entirety. Marketable securities may be transferred in full or in increments of $100. All scheduled reinvestments related to the transferred marketable securities will be cancelled at the time of transfer.

TreasuryDirect requires Treasury Marketable Securities be held for 45 days following original issue before they may be externally transferred.