| Buying and redeeming Securities directly from U.S. Department of the Treasury?

Buying and redeeming Securities directly from U.S. Department of the Treasury?

Tipm asked:


I am very new to investments.As the money in my savings accounts has been dormant for a while without growth, I am planning to invest in securities and treasury Bills (online on the TreasuryDirect website) so I could make some returns by way of investments.
I have only 3 questions:
1.Has anybody done such a venture with the mentioned agency before and what were the merits?
2.Which is the best security to buy, is it bonds or Treasury Bills??
3.Is it safe to quote sensitive info like SS No;bank details, etc online to this agency for this transaction?
Any helpful tip would be highly appreciated!Thanks.

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Comments

One Response to “Buying and redeeming Securities directly from U.S. Department of the Treasury?”

  1. Griffin on April 22nd, 2009 9:02 pm

    I haven’t personally used it, but I have recommended it for a number of my customers. It is a completely safe website (provided you are at savingsbonds.gov).

    The best investment really depends on you. If you want something that matures quickly (within 26 weeks) then you can get T-bills at $1000 a pop. Also for $1000 you can get T-Notes if you want something that will mature in 2, 5, or 10 years.

    For most people wanting a secure investment, the regular bonds are the easiest thing. You can redeem them anytime after 12 months (although you lose 3 months interest if redeemed before 5 years). You could also buy multiple smaller denomination bonds so that if you needed some of the money, you could sell a couple while the rest stay invested.

    Honestly though, you can usually find some regular CD’s at banks that are FDIC insured that will offer some competitive rates. The EE bond is currently offering 3.00% and the I bond is 4.28%. You can find CD’s that will beat that; however, interest on CD’s if generally state taxable, whereas bond interest isn’t.