On occasion, the U.S .Treasury Department borrows money and issues IOU’s in the form of notes, bonds or bills known as treasuries. The difference between these investment instruments is the time for maturity. As an example, a bill can mature in one-year, a T-note 1-10 years and a bond 10-30 years. A bill is actually a discounted value. For example, you could pay $9,700 for a bill that redeems at $10,000 with a 3% interest. T-notes and bonds offer interest on a semi-annual basis. Treasuries and can be bought and sold through a broker or banker at a fee or through the U.S. Treasury “Treasury Direct” program.

U.S. Treasury instruments can be held in a retirement account through Trust Administration Services. Title to the treasuries would be held in the name of your IRA account (First Regional Bank c/f Client Name) with the TRUST tax identification number.

Contact our Customer Service Department for help completing the US treasury transactions.