Buy Treasury Securities Online

• The U.S. Treasury has set up the TreasuryDirect website (see Resources) to provide information on the range of Treasury securities and allow individuals to purchase securities, including Treasury bonds, directly. An account to purchase Treasury securities is opened through the website and linked to a bank account for the payment of bond purchases. The link for a new account application is on the homepage of the TreasuryDirect website. Accounts can be opened for U.S. individuals, corporations, trusts, partnerships and estates.
  
  

Types of Securities

• The full range of Treasury-issued debt securities can be purchased through a TreasuryDirect account. Marketable government securities include Treasury bills, notes, bonds and Treasury Inflation-Protected Securities, or TIPS. Nonmarketable securities include Series EE and I savings bonds. The marketable securities of bills, notes and bonds are often grouped together under the general description of "Treasury bonds." The minimum investment amount for Treasury bonds is $100 as of December 2010.
  
  

Treasury Purchase System

• The U.S. Treasury sells debt securities through an auction process. The auction system allows major financial institutions to place competitive bids on the rate for the purchase of large amounts of securities being auctioned. Individual investors can enter noncompetitive bids to receive the best winning rate of a specific auction. Auctions for different Treasury securities are held weekly. The TreasuryDirect website provides a calender to show which specific securities are being auctioned each week.
  
  

Buying Through Treasury Direct

• To purchase Treasury bonds through a TreasuryDirect account, the specific security type and amount of the investment are entered through the online purchase system. The order is filled at the next Treasury auction for that security. The price and yield of the purchase shows up in the investor's TreasuryDirect account a few days after the auction. All Treasury securities in a TreasuryDirect account are held in electronic form. When a bond matures, the proceeds can be automatically reinvested or deposited into the designated bank account.