The U.S. government is barreling toward its fourth shutdown in 10 years if Congress can't agree to pass a spending bill that keeps it funded. During times of financial uncertainty, investors often turn to safer options such as Treasury Direct, which offers a range of government securities.
Treasury floating-rate securities have two-year maturities and have a rate that adjusts each week based on the weekly auction of three-month Treasury bills. These securities provide investors with an opportunity to earn a variable rate of return while still benefiting from the stability of government-backed investments.
Direct Express, a feature offered by Treasury Direct, allows individuals to receive their federal benefits electronically. It charges no fees to make purchases in stores, online, or via telephone. Cardholders also enjoy the convenience of one free ATM cash withdrawal per month.
Selling back electronic I bonds is made easy through the TreasuryDirect site. However, it is important to note that selling I bonds before five years will result in losing the last three months of interest. Investors should carefully evaluate their investment goals before deciding to sell.
The Treasury recently released the new I Bond and EE Bond rates for November. Notably, the new I Bond fixed rate increased from the previous period, offering investors a potentially higher return on their investment.
Treasury bonds, also known as Treasuries, are debt securities issued by the U.S. government. They provide a low-risk investment option and can be bought directly from the government's Treasury Direct website. Treasury bonds are considered a staple in many investment portfolios.
A Comerica Bank executive recently admitted to major failures in its handling of the Treasury Department's Direct Express program. This included mishandling data and inadequate customer service. The incident highlights the importance of choosing a reputable and reliable financial institution when utilizing Treasury Direct services.
Proposed Regulations have been introduced to clarify refund payment eligibility for certain tax credits. Taxpayers can now only claim refund payments for a single five-year period, impacting the way some individuals may plan their finances.
Treasury bill yields have been on the rise over the past few months, currently exceeding 5%. Investors considering purchasing Treasury bills should be aware of the potential benefits and risk associated with these investments.
