A TreasuryDirect account is an online account used by individuals, entities, and foreign governments to purchase securities directly from the U.S. Department of the Treasury.
Similar to opening accounts as a foreign with a commercial bank, there are specific US parameters applicants need to meet.
In this article, we will discuss how to open a TreasuryDirect account, who can open them, and why you might want to hold US treasuries directly.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- TreasuryDirect Account
- Benefits of TreasuryDirect Accounts
- How Do I Open a TreasuryDirect Account?
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
TreasuryDirect Account
A TreasuryDirect account is an online investment account where individuals, entities, and foreign governments can directly invest in and manage their holdings of U.S. government securities with the U.S. Department of the Treasury.
The securities available to investors with a TreasuryDirect account include Treasury bills, notes, bonds, and Treasury Inflation-Protected Securities (TIPS).
While these securities are also available through financial intermediaries, buying and redeeming through TreasuryDirect has its benefits, including no fees or commissions.
Additionally, while most brokers have high minimum balance requirements to open an account and start investing, individuals can start purchasing U.S. government securities with as little as USD 100.00.
In the following sections of the article, we’ll discuss the other benefits that you can unlock with a TreasuryDirect account and share the process to open an account online.
Before diving in any further, if this is your first time visiting GlobalBanks, don’t forget to download your FREE US Banking Starter Guide. It’s designed to help non-residents with opening bank accounts at top financial institutions in the US.
Benefits of TreasuryDirect Accounts
There are a number of benefits that individuals can access through TreasuryDirect accounts, including low entry points, minimal costs, and of course security as there is no counterparty risk.
Here’s a closer look at some of the key benefits people can access when opening.
Benefits of TreasuryDirect Accounts
- Start investing with as little as USD 100.00
- No fees or commissions on investments
- No counterparty risk from financial intermediaries
- Flexible investment horizon based on your goals
- Access and manage accounts directly online
In other words, TreasuryDirect accounts provide access to low-cost investments, with a minimum commitment, and don’t require you to take on the additional risk of investing through a third party.
Of course, if you want to open a TreasuryDirect account, you will need a US bank account. And, if you are a foreign non-resident, opening an account (especially remotely) can be very challenging. So, if you would like help navigating your options, don’t forget to check GlobalBanks USA, our dedicated US bank account opening service.
In the next section of the article, we’ll explain how you can actually open a TreasuryDirect account online right now.
How Do I Open a TreasuryDirect Account?
You can open a TreasuryDirect account online through the TreasuryDirect website. To do so, you will need to be a qualifying individual, insert certain personal information, have a U.S. bank account, and have a tax identification number.
Additionally, in order to open an account, applicants need to be 18 years of age or have a legal guardian open the account for them.
Additionally, if you are looking to open an account as a foreign non-resident, you will need to complete Form W-8BEN from the Internal Revenue Service (IRS).
Form W-8BEN is the Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting. In short, it ensures that your accounts are correctly treated based on your tax status as a non-resident foreigner for tax purposes.
Lastly, it’s worth noting that if you are a foreign non-resident, withholding taxes may apply to the interest earned depending on your country of residence.
Frequently Asked Questions
Below are three of the most common questions we receive from people looking into opening a TreasuryDirect account. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
How Do I Get My Money From TreasuryDirect?
To get your money from TreasuryDirect, you will need to have a US bank account connected to your TreasuryDirect account. Importantly, the bank account will also need to be equipped to send and receive Automated Clearing House (ACH) transfers.
How Does a TreasuryDirect Account Work?
TreasuryDirect accounts let individuals, entities, and foreign governments directly invest in U.S. government securities, including Treasury bills, notes, bonds, and Treasury Inflation-Protected Securities (TIPS).
Is TreasuryDirect Safe and Legitimate?
Yes, TreasuryDirect is a safe and legitimate platform for buying and managing U.S. government securities by individuals, entities, and foreign governments. In fact, TreasuryDirect is managed directly by the United States Department of the Treasury.
Ready to Open Accounts With Banks in the USA?
If so, you can get access to GlobalBanks USA (our dedicated US banking service) in just a few clicks.
GlobalBanks USA is a 100% personal account opening solution. It provides direct access to our team of US banking experts.
When you join, you receive…
+ Expert suggestions on where to open US bank accounts.
+ Step-by-step support to navigate opening US bank accounts.
+ Direct introductions to helpful and responsive bankers.
+ Plus, detailed guides to maximizing the value you get from your new US bank account.
And “yes!” GlobalBanks USA helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks USA even helps non-resident US LLCs and foreign & offshore entities.
To learn more about GlobalBanks USA, visit the product page to see how our team can help you successfully open US bank accounts!
