TreasuryDirect alternatives: A simpler way to invest in U.S. treasuries

Treasury securities, including Treasury bills (T-bills), Treasury notes (T-notes), and Treasury bonds (T-bonds), are issued by the U.S. Department of the Treasury and are potentially considered low-risk investments since the federal government backs them.

While TreasuryDirect, the official platform for purchasing these securities, offers direct access, many investors find it difficult to use. Buying T-bills or other Treasury securities from alternatives like the Public’s Treasury Account can make the process easier, giving you more time to focus on your investments.

Understanding treasury securities: T-bills, T-notes, & T-bonds

• T-bills – Short-term securities with maturities ranging from a few days to one year. They are sold at a discount and do not pay periodic interest; instead, investors earn the difference between the purchase price and the face value at maturity.
• T-notes – Medium-term securities with maturities between two and ten years. They pay interest every six months until maturity.
• T-bonds – Long-term securities with maturities exceeding ten years, often used for retirement and long-term investment strategies. They also pay interest every six months.

TreasuryDirect limitations

While TreasuryDirect allows investors to buy U.S. government securities directly, it has some limitations:

• No mobile app: Users often say that TreasuryDirect is difficult to use and find it frustrating that the website doesn’t have an accompanying mobile app.
  
• Limited product range: TreasuryDirect is a government service, so it only offers users opportunities to bid on government securities.
• No secondary market trading – One of the advantages of treasuries is that they can be bought and sold on the secondary market via a trusted broker or financial institution. But if you want to do that on TreasuryDirect, you’ll have to transfer everything to a broker.
• No automatic reinvestment – T-Bills have short maturity periods, so many investors choose to reinvest them. But TreasuryDirect severely limits the periods in which users can plan and cancel reinvestments.
• Customer Service Issues: TreasuryDirect users report long hold times and difficulties accessing support, especially for locked accounts.

Alternatives to TreasuryDirect

While TreasuryDirect allows individuals to buy US Treasuries directly from the government, there are alternative ways to invest in these securities that may offer greater flexibility, convenience, or liquidity.

1. Buying US Treasuries through Public Treasury Account
2. Buying US Treasuries through Brokers
3. Investing in US Treasuries through ETFs or Mutual Funds

1. Buying US treasuries through Public Treasury Account

Investing in US Treasuries can be a secure way to generate returns while preserving capital. Public’s Treasury Account allows investors to buy Treasury bills (T-bills), notes, and bonds directly, offering a straightforward way to access government-backed securities. Investors can also create a custom US Treasury ladder, which helps manage cash flow by staggering maturity dates. With an easy-to-use mobile app, Public enables users to invest in Treasuries alongside other asset classes, making portfolio management more convenient.

Advantages of Public’s Treasury Account over TreasuryDirect:

• User-friendly platform – Public’s mobile app provides a seamless experience, allowing you to invest in Treasuries alongside stocks, ETFs, crypto, options, bonds, and more so you can manage all your investments in one place.
• Low minimum investment – You can start investing in the US Treasury with as little as $1000, and there is no maximum investment limit.
• Liquidity – You have the flexibility to withdraw your funds at any time, though selling before maturity may be subject to market conditions.
• Custom US treasury ladder – Public allows you to create a custom US Treasury ladder, helping you manage reinvestment risk and cash flow by spreading out maturities over time.
• 24/7 customer support – Public provides award-winning customer support, ensuring you have assistance available whenever needed.

How to Invest in US Treasuries on Public.com

Public makes it easy to invest in U.S. Treasuries and build a custom Treasury ladder—all from one platform. Follow these simple steps to get started:

1. Sign Up for a Treasury Account

Download the Public app on iOS or Android, or sign up on the web. The onboarding process is quick and guides you through setting up your Treasury account.

2. Fund Your Account

Easily add funds using Bank Transfer (ACH), Debit Card, or Wire Transfer

3. Choose Your US Treasury Investment

Select from Treasury bills, notes, or bonds with maturities ranging from 3 months to 30 years. Lock in your yield at purchase and enjoy state and local tax exemptions.

4. Complete Your Purchase

Review your selection, confirm your investment amount, and finalize your purchase. Your Treasury investment will be added to your portfolio.

5. Manage Your Portfolio in One Place

Track and manage your US Treasuries, stocks, ETFs, crypto, bonds, options, IRAs, and high-yield cash—all within Public’s platform.

2. Buying US treasuries through Brokers

Many brokerage firms allow investors to purchase Treasury bills, notes, and bonds within taxable or tax-advantaged accounts (such as IRAs). Brokers often provide access to both new Treasury issuances and secondary market trading, allowing investors to buy and sell before maturity. Some brokers may charge fees or require minimum investment amounts, so it’s important to review their terms.

3. Investing in US treasuries through ETFs or Mutual Funds

Exchange-traded funds (ETFs) and mutual funds that invest in US Treasuries provide a diversified approach to Treasury investing. These funds pool investor capital to buy a mix of short-, medium-, and long-term Treasuries, helping to manage duration risk. ETFs offer intra-day liquidity, while mutual funds are priced at the end of the trading day. However, both may have expense ratios and market-based price fluctuations.

Conclusion

While TreasuryDirect remains an option for purchasing U.S. Treasuries, its limitations—such as a lack of secondary market liquidity and a complex interface—can make it less appealing for many investors. Whether you’re looking to invest in T-bills, T-notes, or T-bonds, alternatives like brokers, ETFs, or platforms like Public provide greater convenience, flexibility, and additional features that may better align with your financial goals.

If you’re considering investing in U.S. Treasuries, Public’s Treasury Account offers a seamless way to buy T-bills, T-notes, and T-bonds with maturities ranging from 3 months to 30 years. With the ability to lock in your yield at purchase, benefit from state and local tax exemptions, and access an easy-to-use platform, Public simplifies the process while providing added liquidity and support. By choosing the right investment method, you can optimize your Treasury investments based on your risk tolerance, liquidity needs, and long-term strategy.