Treasury Notes: How To Buy

You can buy Treasury notes directly from the U.S. Treasury or through a bank, broker, or dealer.

Buying Directly From the U.S. Treasury

To buy a note directly from us, you must have an account in TreasuryDirect ("Open An Account").

By bidding for a note in TreasuryDirect, you:

  • Agree to accept whatever yield is determined at auction
  • Are guaranteed to receive the note you want, in the amount you want

(This is called noncompetitive bidding.)

Submit a Bid in TreasuryDirect

The bid submission process in TreasuryDirect is completely online. Login to your account and click the BuyDirect® tab. Follow the prompts to specify the security you want, the purchase amount, and other requested information.

You also can set up a reinvestment into another note. In a reinvestment, you use proceeds from your maturing note to buy another note. TIP: If you want to be sure of what type of note (2-year, 3-year, etc.) your original note will reinvest into, we recommend you check your account in the weeks prior to the maturity date of your original note.

Payments and Receipts in TreasuryDirect

The price that you pay for a note can include either a premium or a discount, and accrued interest. For a full discussion of the price of a security, see Treasury Notes: Rates and Terms.

When you buy a note in TreasuryDirect, we withdraw the purchase price from the source of funds you specify, which could be one of your bank accounts or your Certificate of Indebtedness (C of I). When the note matures, we deposit payments into your bank account or your C of I, whichever you specify.

Buying Through a Bank, Broker, or Dealer

Banks, brokers, and dealers offer two types of bidding for notes:

  • Competitive

You specify the yield you will accept.

Depending on what yield is determined at the auction, you may or may not receive the note you want, and if you receive it, you may receive it in less than the amount you want.

  • Noncompetitive

You agree to accept whatever yield is determined at auction.

You are guaranteed to receive the note you want, in the amount you want.

For more information, consult a bank, broker, or dealer.