TREASURY DIRECT ACCOUNT: What Is It & How To Get It

TREASURYDIRECT ACCOUNT
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As an investor, if you’ve been looking for a platform that gives the ability to establish and purchase government treasury securities electronically, then look no further, because the TreasuryDirect Account has got you covered. In this article, you will learn what a TreasuryDirect account is, the types, how to find your TD account number, who is eligible to open one and how to set-up a TD account.

What Is TreasuryDirect Account

A TreasuryDirect account is an online account that creates a leeway for investors to buy, hold and organize government treasury securities. Another name for the government treasury securities is ‘’TIPS’’, which stands for Treasury Inflation Protected Securities. There are five main types of treasury securities, they include;

  • Treasury notes 
  • Treasury bills 
  • Treasury bonds 
  • Treasury Inflation-Protected Securities (TIPS) 
  • Floating Rates Notes (FRNs).

TreasuryDirect is an online web that enables both individual investors and investment clubs to supervise, manage and control their investments electronically. The creation of TreasuryDirect led to the origination of the TD account. It is through a TD account that individuals can buy treasury securities straight from the United States government.  

Types of TreasuryDirect Accounts

TreasuryDirect has given its users the mobility of creating several accounts. Below are the types of TD accounts, they include;

  1. Primary account
  2. Linked account
  3. Minor account
  4. Custom account
  5. Conversion account

#1 Primary Account

A TreasuryDirect Primary account is the same thing as your personal account. It is the first account you open under TreasuryDirect in which every individual user is given a special password. With this account, you will be able to perform most of your online activities, such as buying treasury bills, treasury notes, treasury bonds etc. Plus, once you officially own a TD account, it gives a leeway for you to create other accounts such as Minor, Custom, and Conversion accounts.

#2 Linked Account

The TreasuryDirect Linked account is not an independent account. It is just a name given to an account linked to your Primary TD account. A Linked account in TreasuryDirect can only exist when you have at least two accounts. In order for you to gain access to your second or third account, you will have to link your Primary account (personal account) to them. Moreover, the only way you can have access to your other accounts on TD is through your Primary account and this is where the linking of accounts comes in.

#3 Minor Account

Under TreasuryDirect, a Minor account is an account made for minors (children under the age of 18). It is the sole responsibility of the parent or guardian of a child to open and manage this account for their child or ward. Above all, it is only a parent or guardian of the child will have access to the minor’s account. This is because the minors account will be linked to your personal account (primary account), and it is through this account that accessibility of the minor’s account is granted. 

Furthermore, when the child is officially an adult (18), and is able to open his/her own account, de-linking will be an available option. The term de-linking is when the securities of a linked account are transferred to a Primary account. By doing this, any new activity carried out on the minor’s account will be deactivated. 

#4 Custom Account

A TreasuryDirect Custom account is an account which individuals open in order for them to reach their financial targets. This account gives you the flexibility of customizing the name of your financial targets. For instance, if you and your friends are going on a girls trip you can customize it as “Girl’s Trip Fund”. Also, these flexibilities are available on other treasury direct accounts. For example the TD primary account.

#5 Conversion Account

The main function of the Conversion account is conversion. In the TreasuryDirect system there are activities that involve conversion. The conversion account is available to assist people in changing paper treasury securities like the I saving bonds or the series EE to electronic treasury securities.

What is a TreasuryDirect Account for?

Through the internet, TreasuryDirect is able to provide and make available a wide range of activities. These activities are done through a TD account. Below are some of the functions and uses of a TreasuryDirect account. They are;

  1. A TreasuryDirect account allows both single and group investors to buy treasury securities straight from the United States.
  2. It gives people the ability to buy, manage and secure their online transactions.
  3. There is no charge or fee for any activity or transaction. When you have a TD account and yo engage in activities such as purchasing treasury notes, bills and bonds, maintenance of account or redeeming some of your bonds, there is no fee attached.
  4. With a TD account, you can create other accounts which enable you to carry out conversions, such as changing paper treasury securities to electronic ones.
  5. Through a TreasuryDirect account, you can also buy marketable treasury securities.

How do I get a TreasuryDirect Account?

There are several steps you need to take in order for you to secure a TreasuryDirect account. Before we discuss that, here is some valuable information you need to know, which will help simplify the process of getting a TD account.

The first thing you need to know while you’re considering getting a TD account is eligibility. You need to know if you are eligible. The TreasuryDirect policy does not allow minors to operate an account. If a minor has an account, then it is not in their control, it is either a parent or guardian that manages it. In addition, here is some of the information you need in order for you to create a TD account. They include; your account number, identification number, e-mail address (has to be valid), bank routing number, tax ID number, U.S. address of record, and an IRS name control (for entities).

Nevertheless, learning how to get a TreasuryDirect account is quite easy, especially when you have an easy guide that contains all the necessary information you need to know. Below are steps to take on how to get a TD account. They are;

  1. Visit the TreasuryDirect official website, ‘’www.treasurydirect.gov’’.
  2. On their web page click open account.
  3. Select the account type that you like.
  4. Provide all your requested personal data.
  5. Click on ‘’apply now’’ and complete the application process.

How To Find My TreasuryDirect Account Number?

In order for you to get your TreasuryDirect account number, the application form which you filled out in the process of opening your TD account has to contain valid information. If perhaps any of the information there is not correct, then you may experience difficulties getting your TD account number.

Moreover, if all the information you filled on the application form during the process of opening your TD account were correct, you will receive an email ten minutes after submitting your application form. It is the sole responsibility of TreasuryDirect to give you an account number, you do not have to find or look for it.

Is there a fee for a TreasuryDirect Account?

TreasuryDirect does not charge you for opening an account. In fact, most of the transactions or activities carried out using a TreasuryDirect account have no fees attached to them. Activities such as making purchases of several treasury securities, redeeming bonds and maintenance do not have charges.

How do I get my money from TreasuryDirect?

Since TreasuryDirect is a secured web-based platform, learning how to get your money from TreasuryDirect is not a problem. As an individual or investor who has an active TD account, when you make purchases, the treasury securities are often supplied after two business days or within one week. The cost of purchases that you made will be debited from the source of funds you picked.

How To Add Beneficiary To TreasuryDirect Account?

One of the reasons why a lot of individuals and investors who have an active TD account add beneficiaries is because it simplifies the procedure of transferring money when the person passes on. By adding a beneficiary or co-owner, you have automatically simplified the process of transferring your money. This makes it easier for TreasuryDirect to know who to transfer the money to when you pass away.

Also, once you have an active TreasuryDirect account, you can easily add a beneficiary or secondary owner. During the registration process, when you apply to get a TD account, the bond registration is in your name and for you to add a beneficiary, secondary owner, or co-owner, you have to add his/her name. 

Below are some of the steps you need to follow on how to add beneficiaries to the TreasuryDirect account. They include;

  1. Go to your TreasuryDirect account.
  2. Select update my registration list, (you will see a list of available registrations on your TD account).
  3. Select add registration.
  4. Complete the registration process by filling the necessary information, which include you and your beneficiaries information.

Who is Eligible to Open a TreasuryDirect Account?

Eligibility is one of the first things you need to consider before opening a TreasuryDirect account. This will help you to know if you are qualified to own a TD account. As an individual, you have to be competent legally and at least 18 years old or over in order for you to be eligible to open an account.

Here is a list of things you need that grants you the eligibility to open a TreasuryDirect  account. Some of them are;

  • An individual must be 18 years and above.
  • Both individual investors and entities have to be legally competent.
  • For an entity account, the provision of a valid SSN, (Social Security Number) will be needed.
  • An EIN, (Employer Identification Number) must be provided for an entity.
  • A United States address of record must be provided. This applies to both entities, individuals and investors. 

How Do I Buy TreasuryDirect?

TreasuryDirect is a platform where individuals and investors can buy treasury securities and also redeem bonds electronically. In order for you to buy treasuries, you will have to own an active TreasuryDirect account. This account is what gives you the ability to carry out activities such as; buying of treasury bonds, treasury bills and treasury notes. 

Also, you need to keep in mind that eligibility is very necessary before you will be able to open a TD account. If you are not eligible then your application for ownership will be denied. 

TreasuryDirect Account Set-up

The TreasuryDirect account set-up is the same thing as opening a TreasuryDirect account. By setting up a TreasuryDirect account, you are also creating it. Below are some easy steps to take during a TD account set-up. Some of them are;

  1. Open a browser and visit the TreasuryDirect official website.
  2. Click on open account.
  3. Select your preferred choice of account type.
  4. Read the steps provided thoroughly.
  5. Fill in all the information on the application form and click submit.

Conclusion

TreasuryDirect offers a variety of advantages, but many of these advantages are accessible only when you own a TreasuryDirect account. With the help of a TD account, the process of purchasing treasury securities and redeeming bonds has become easier for both individuals and investors. Furthermore, TreasuryDirect is one of the most secure web-based platforms to buy government treasury securities, because it is directly from the US.

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