Why is there cash in my Treasury Account?

Your cash value can vary from $0.01 to $99.99 depending on the current price of T-bills. T-bills are purchased for a discount (less than $100) and pay out their par value ($100) at maturity - this difference is your interest. If there is not enough cash available to purchase another T-bill, it will remain as cash and will not earn interest. For instance, let’s say the Treasury Department issues a T-bill with a face value of $100, a maturity of 12 months, and yield-to-maturity of 4.6%. The purchase price of this T-bill would be $95.40 based on those figures. If you deposit $100, you would purchase 1 Treasury bill for a total of $95.40. The $4.60 would remain as cash in the account until another deposit or interest generates enough cash to purchase another Treasury bill.

For further questions, please contact our member support team via in-app chat or email at support@public.com

Disclosures:

Free trading refers to $0 commissions for Open to the Public Investing, Inc Financial self-directed individual cash brokerage accounts that trade U.S. listed securities via mobile devices. Relevant SEC & FINRA fees may apply. Please see our Commission and Fee Schedule.

This is not an offer, solicitation of an offer or advice to buy or sell securities, or open a brokerage account in any jurisdiction where Open to the Public Investing, Inc is not registered.

Investments in T-bills: Not FDIC Insured; No Bank Guarantee; May Lose Value.

All U.S. Treasury investments and investment advisory services provided by Jiko Securities, Inc., a registered broker-dealer, member FINRA and SIPC. Securities in your account are protected up to $500,000. For details, please see www.sipc.org. Banking services provided by Jiko Bank, a division of Mid-Central National Bank.

Jiko Group, Inc. and its affiliates do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. See FINRA BrokerCheck, Jiko U.S. Treasuries Risk Disclosures and Jiko Securities Inc. Form CRS.

What is a Treasury Account?

How does a Treasury Account work? (Assumes 26-week T-bill strategy)

Can I stop the automatic purchase of Treasury bills when my current Treasury bill matures?

What is the minimum and maximum funding requirement into a Treasury Account?

What interest rate do I earn, and why is it purchased in $100 increments?