Learn More About Zero-Percent Certificate of Indebtedness

The Zero-Percent Certificate of Indebtedness (Zero-Percent C of I or simply, C of I) is a Treasury security that does not earn any interest. It is intended to be used as a source of funds for purchasing eligible interest-bearing securities.

There's no limit to the amount you may hold in your C of I. You may build the amount in your C of I a number of ways:

After you've accumulated enough for the security you wish to purchase, simply select "Zero-Percent C of I" as the Source of Funds in BuyDirect. For your convenience, daily incoming electronic deposits are applied toward your C of I immediately prior to issuing other securities in your account. As long as any deposits to C of I are received for the purchase request date and the balance is sufficient, your security will be issued as scheduled.

Debits to C of I will be processed daily in the following order:

Note: If your C of I balance is insufficient, scheduled transactions for which funds are not available will be canceled.

Need one less worry about your security payments? If payments to your bank are returned to us for any reason, the returned funds will be automatically deposited in your C of I. You're then able to use the deposited funds to purchase additional securities in your account or redeem all or part of them to your bank. It's your choice.

Unexpected changes in your plans? Choose the option to redeem your C of I, and the amount you enter is redeemed from your C of I and deposited into your designated bank account. However, if you purchase a C of I by debiting your financial institution, the total balance of your C of I will be ineligible for redemption for five business days. This is necessary in the event your C of I purchase request is returned to us by your financial institution. Five business days following receipt of the debit purchase, your funds are once again eligible for redemption.

All C of I purchase and redemption activity is conveniently recorded in your C of I History.

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