Public’s Treasury Account provides investors exposure to Treasuries via a separate account to provide “risk-free”, and potentially tax-advantaged returns and income. The account can be used as a cash alternative or as a low-risk diversifying investment to complement other parts of a portfolio. Members can select up to ten different Treasuries to purchase ranging from 3-months-to 30-years in maturities as part of their investment strategy. Members can set up recurring deposits, adjust their allocation at any time, and view their performance and income over time. The account comes with the flexibility to automatically reinvest income and principal, or distribute to the member’s brokerage account. Given their ‘risk-free’ nature, Treasuries are suitable for almost any investor, though longer-dated Treasuries come with additional risks if sold before maturity.

Treasuries

Treasuries are debt securities issued by the U.S. Department of the Treasury to finance government spending and manage national debt. They are considered one of the safest investments because they are backed by the "full faith and credit" of the U.S. government. Treasuries come in different forms, including Treasury bills (T-bills), which are short-term securities maturing in one year or less; Treasury notes, which have maturities ranging from 2 to 10 years; and Treasury bonds, which have maturities of 20 to 30 years. Investors receive periodic interest payments, known as coupons, for notes and bonds, while treasuries are sold at a discount and pay the full face value at maturity. Treasuries are widely used by individuals, institutions, and governments for their low risk and liquidity.

Public offers investors an easy and secure way to invest in and manage a portfolio of Treasuries tailored to their time horizon, while reducing the friction typically associated with purchasing and managing multiple treasury bonds.

A Treasury Account is a separate account provided by our clearing firm, Apex Clearing. Your Treasury Account is separate from your primary Public Investing Brokerage account and will have separate statements and tax documents.

How does a Treasury Account work?

When a deposit of $1,000 or more is made into the Treasury Account, you will be able to select a treasury ladder that fits your time horizon. You will see a range for 1 year, 2 years, and 5 years for the default ladders. There is also an option to customize your own allocation with any of the Treasury options. Once the deposit is made, no further steps are needed to move forward with executing the trade according to your target Treasury allocation. The minimum amount to purchase a Treasury is ~$100, so cash balances under $100 will remain as cash until the balance grows large enough to purchase another Treasury. Trades within the Treasury account are placed during market hours, so you may see the cash held until the following business day. Orders will be executed depending on when the order was placed. Any leftover funds will be allocated as cash within your Treasury account.

If you make an additional deposit into your Treasury Account, treasury bills will be purchased based on your allocation. To decide which duration of Treasury bond to purchase next in a $100 par value amount, Public investing will allocate proportionally to your treasury account allocation. If there are multiple bonds in that category, the treasury bill or bond with the highest yield will be purchased.

Any residual cash will remain in your Treasury Account as cash until there is again sufficient additional funds to purchase additional bonds in your Treasury Account.

For any questions regarding your Treasury Account please contact Member Support via in-app chat or email at support@public.com.