Treasury Cash Out:

Ratesaver | Sep 15, 2023 | 187 posts since 2013

If I was to cash out my treasury acc. balance in total and nothing left in it does my acc. stay open or automatically close out. Or do I have the option to keep it open

Post a comment

Marfa | Sep 15, 2023 | 68 posts since 2022

Not sure but it would have to be accessible for your tax statement at the end of the year since the treasury does not issue any paper statements .

Marfa | Sep 16, 2023 | 68 posts since 2022

P.S according to a brokerage “ expert” after two years of inactivity the treasury will automatically close an account. Makes sense because a client needs to access tax information.

Ratesaver | Sep 16, 2023 | 187 posts since 2013

Thanks for your answers and it does make sense to me to leave it open for a few yrs.

Rickny | Sep 16, 2023 | 1,298 posts since 2017

What is "inactivity"? I've gone more than 2 years between doing any transactions and the account wasn't closed.

Ratesaver | Sep 17, 2023 | 187 posts since 2013

Thanks again this is good to know as I will again buy in later but now I just want cash out till after the first of the year

alan1 | Sep 17, 2023 | 880 posts since 2015

My experience is the same as that posted by Rickny: "I've gone more than 2 years between doing any transactions and the account wasn't closed."

But I realize that my recollection of my TreasuryDirect activity and inactivity may not be a particularly reliable source

And closing an account after two years of inactivity would produce absurd results. For example, someone purchases savings bonds this month and does nothing for several years (doesn't even log on for many years). So, would those bonds disappear due to "inactivity"? I think it's absurd to think so.

But my opinion as to what is "absurd" is not particularly useful, and there are all sorts of things that do produce results that I regard as absurd.

So, let's look at just one of the many sources that I regard as far more reliable than what is jiggling around in what's left of my brain.

From Code of Federal Regulations, Title 31, Subtitle B, Chapter II, Subchapter A, Part 363 (titled "Regulations Governing Securities Held in TreasuryDirect")

Section 363.10 is titled "What is a TreasuryDirect ® account?".
Subsection (c) of Section 363.10 states:

"Closing an account. If a TreasuryDirect primary account and all associated linked accounts have had no holdings and no activity for a period of two years, we reserve the right to close the account, along with all linked accounts."
(bold in original)

So, no activity for two years does not result in closure. It's "no holdings and no activity for a period of two years."
(emphasis added)

Rickny | Sep 17, 2023 | 1,298 posts since 2017

Alan I think you got it. If you have holdings (in my case I have bonds in my account) the account will not be closed. If you have no holdings and no transactions I could see them closing an account.

I remember that the Treasury was pushing people to convert paper bonds to electronic bonds. Why would they close these accounts that had electronic bond holdings?

Ltssharon | Sep 17, 2023 | 472 posts since 2020

Related but not on point: In portland oregon, all information from the division of motor vehicles was compromised fraudulently this summer for everyone. I therefore am not converting my current paper bonds to electronic, because I feel electronic is subject to electronic compromising easily. I think this is wiser. The dmv compromising was done by a bad person getting into something like a MOVE software.

Rickny | Sep 17, 2023 | 1,298 posts since 2017

You can only get new bonds electronically. I have no problems having electronic bonds.

The IRS, state governments, local governments, schools and banks etc all have your personal and your account information online.

I had an person at a hospital use our personal information on
and charge card info on a paper form (mandatory for deductible) to make purchases and also went for a loan at Dell. Dell contacted us and refused the loan. They had information on the people who lived in the Bronx that stole our info. Local PD would not pursue and all the credit card charges removed.

I like the bonds online electronically as I as I do
not have to store them and they won't get lost. TD also advised me when my EE bonds matured at 30 years.

But, one should do what they are comfortable with.

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.