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TREASURY SECURITIES & PROGRAMS

The Payroll Savings Options in TreasuryDirect

Change how you save with TreasuryDirect Payroll savings!

The Payroll Savings Option in TreasuryDirect

TreasuryDirect Payroll Savings Plan for Purchasing Savings Bonds

TreasuryDirect offers a Payroll Savings Plan feature that allows employees to make recurring purchases of electronic savings bonds by having money from each pay sent automatically to a TreasuryDirect account.  The process is simple:

  1. If you don’t already have a TreasuryDirect account, open an account in TreasuryDirect.
  2. Go into your TreasuryDirect account and set up a Payroll Savings Plan.  Here, you'll decide what type and dollar value of savings bonds you want to purchase.
  3. Ask your employer to send the amount you choose to TreasuryDirect every time you get paid.  This is just like sending your pay to a bank by direct deposit. (Use these direct deposit instructions.)

The amounts you have direct deposited from your pay are used to buy a Payroll Certificate of Indebtedness (C of I) which is a non-interest-bearing security that is used as the source of funds for your savings bond purchases.

Amounts you keep in your Payroll C of I earn no interest and remain there until used.  The Payroll C of I can be redeemed at any time.  The funds are usually deposited to your bank account within two business days. That's all there is to it.

Once your Payroll Savings Plan is set up in TreasuryDirect the system will automatically purchase the type and dollar value of bond you want every time you have accumulated enough money in your Payroll C of I to make the purchase.  For example:  If you want to buy $50 Series I Savings Bonds and you ask your employer to withhold $25 from each pay, TreasuryDirect will purchase a $50 bond for you every other payday.  You don't have to think about it again or do anything else.  The purchase is automatic until you change it or end the payroll funding.

TreasuryDirect Payroll Savings for Marketable Securities and Savings Bonds

The Payroll Savings Plan option described above allows you to select a single series of savings bond in a single registration (name(s) on the bonds) at a time.   If you want to purchase marketable securities or mutiple series or registrations of savings bonds, you need to use the payroll savings option described in this section.

You'll provide the same direct deposit instructions shown above to your employer without adding the letter "P" to your account number.  This places the funds in another Certificate of Indebtedness (separate from the Payroll C of I) where they will remain until you use them to make a purchase.

When you use this option, you do not set up a Payroll Savings Plan in TreasuryDirect.   However, you can set up a recurring schedule for the purchase of Treasury securities.  For more information see http://www.treasurydirect.gov/indiv/products/instructionsrecurringpurchases.pdf.

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More about TreasuryDirect

TreasuryDirect is an easy way for you to save regularly by purchasing electronic Treasury securities. With TreasuryDirect:

  • You can buy, manage, and redeem Treasury securities online 24/7, all from the convenience of home or work, wherever you have secure Internet access.
  • You can diversify your holdings since TreasuryDirect offers Treasury bills, notes, bonds, and Treasury Inflation-Protected Securities (TIPS), in addition to savings bonds.
  • You can set up multiple registrations in one account.
  • You can schedule recurring purchases of savings bonds for up to five years in advance. Marketable securities purchases can also be scheduled in advance. If you're interested in this option, you'll find more information on our website, www.treasurydirect.gov and in your TreasuryDirect account.
  • Savings bonds purchased through TreasuryDirect are generally added to your account in just one business day.
  • When the funds are needed, after the minimum term of ownership has been reached, you can cash part or all of a savings bond or savings bonds. The payment will be deposited to the checking or savings account you choose. Redemption funds should reach your bank or credit union in two business days.
  • TreasuryDirect tracks details such as issue date and current value for you.
  • Since the securities are electronic, there is no paper to lose, nor do you need to go to your local bank to redeem your savings bonds.
  • You can even set up accounts for minor children, and custom accounts for specific purposes such as a vacation, in your TreasuryDirect account.
  • TreasuryDirect provides a summary of account activity, including recent purchases, payments, and account balance.

Direct deposit instructions

When submitting information to your payroll office or entering it into an online payroll system use the following instructions:

  • When you are asked for the "Receiving Bank Name" use the word:  TREASURYDIRECT
  • Show the ABA/RTN number as:  051736158
  • For the account number, use the TreasuryDirect account number provided to you followed by the letter "P" and without hyphens if you are using the Payroll Savings Plan in the first option described above.   If you are using the second option, omit the “P” (For example: A123456789P or A123456789)
  • When you are asked for the type of account (checking or savings) you can choose either one.  It doesn't matter to our system.

Note:  adding the letter "P" to your TreasuryDirect account number flags it as a Payroll Savings Plan deposit.  If you have not established a payroll plan the transaction will be rejected. If you provide your account number without the “P”, funds will be deposited into the C of I you use for TreasuryDirect payroll savings for marketable securities and savings bonds.

Other ways to contribute to your TreasuryDirect account

In addition to using the automatic payroll option to purchase savings bonds by having money sent by direct deposit from your pay, you can also contribute to your TreasuryDirect account using pension funds, and annuities.  You can also request that funds be taken from your checking or savings account (though this option is not available as a funding source for our automatic Payroll Savings Plan). To use this method of contributing to your TreasuryDirect account, contact the financial institution where you have your checking or savings account.