Learn More About Reinvesting Maturing Proceeds

You can schedule reinvestments of your marketable securities in TreasuryDirect. Reinvestment means using the redemption proceeds of a maturing marketable security to automatically purchase a new marketable security of the same type and term, if available.

Scheduling and editing reinvestments: When making your original purchase of a marketable security, you can schedule reinvestment of the security simply by completing the "Schedule Reinvestment" section on the BuyDirect® page. Bills can be scheduled for reinvestment for up to two years; other eligible marketable securities can be scheduled to reinvest one time. When your original security matures, the proceeds will be reinvested or used to purchase the next available security of the same type and term as the original.

If you have an original or reinvested security which has no reinvestments scheduled, you can request reinvestment of the security prior to its maturity. Go to ManageDirect and select the Schedule Reinvestments text link. To cancel or change the number of scheduled reinvestments for a security, select the Edit Reinvestments text link.

You cannot schedule, edit, or cancel a reinvestment when the maturing security is in a closed book period, or when a noncompetitive bid for the replacement security is no longer accepted, whichever comes first.

Note: If there is no security available for reinvestment with an issue date that coincides with the maturity date, type, and term of the maturing security, the scheduled reinvestment will be canceled and the proceeds of the maturing security will be deposited to the maturity payment destination you previously selected.

Purchase limitations do not apply to securities issued through reinvestment.

For step-by-step instructions, see How do I reinvest the proceeds of a maturing security in my TreasuryDirect account?

Issuance of the new security through reinvestment: When the new security is auctioned, the price of the security will be displayed in your Pending Purchases and Reinvestments, which can be accessed through ManageDirect.

Treasury Inflation-Protected Security (TIPS) or Floating Rate Note (FRN) auctions can have negative yields or spreads; if this occurs the price will be above par.

You may also owe additional funds if accrued interest is being charged, or backup withholding affected the amount of the maturing proceeds.  If additional funds are due upon reinvestment, the funds will be debited from your primary bank, unless the original security associated with the reinvestment was purchased May 15, 2010, or after, with C of I funds. In this case, your C of I will be debited. Any refund due as a result of the reinvestment will be credited in the same manner.

If the amount available at the designated source is insufficient to pay the additional amount, the reinvestment will be canceled and the maturing proceeds will be deposited to your C of I.

Holding period for the new security: If the new security is not fully funded from the maturing security, it must be held 45 calendar days before it may be transferred. If the term of the security being purchased is less than 45 days, these restrictions will be enforced during the entire term of the security.

Transferring a security with scheduled reinvestments: When a security is partially transferred, any scheduled reinvestments for the security will be canceled. When a security is fully transferred, scheduled reinvestments will be retained only if the security is transferred to another TreasuryDirect account with the same taxpayer identification number or to your minor linked account. If additional funds are needed to complete such reinvestments, the receiving account's primary bank will be debited.


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