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Floating Rate Notes (FRNs)

This Help Center page covers detailed information on Floating Rate Note transactions. For general information, see Floating Rate Notes.

Buying

Buy Online through TreasuryDirect

To buy FRNs directly from us, you must open an account in TreasuryDirect. To bid in TreasuryDirect, login to your account and click the BuyDirect® tab. Follow the prompts to specify the security you want, the purchase amount, and other requested information.

By bidding for a FRN in TreasuryDirect, you agree to accept whatever high discount margin is determined at auction, and you’re guaranteed to receive the FRN you want, in the amount you want. This is called noncompetitive bidding.

When you buy an FRN in TreasuryDirect, we withdraw the purchase price from the source of funds you specify, which could be your bank account or your Certificate of Indebtedness (C of I). When the FRN matures, we deposit payments into your bank account or your C of I, whichever you specify.

Buying Through a Bank, Broker, or Dealer

To buy FRNs directly from us, you must open an account in TreasuryDirect. To bid in TreasuryDirect, login to your account and click the BuyDirect® tab. Follow the prompts to specify the security you want, the purchase amount, and other requested information.

By bidding for a FRN in TreasuryDirect, you agree to accept whatever high discount margin is determined at auction, and you’re guaranteed to receive the FRN you want, in the amount you want. This is called noncompetitive bidding.

Reinvesting or Redeeming

If you hold an FRN in TreasuryDirect, when the FRN matures you can redeem it or reinvest it.

If you hold an FRN with a bank or broker, consult the bank or broker to learn your options.

Reinvest

If you hold an FRN in TreasuryDirect:
• You can use the proceeds from the maturing FRN to buy another FRN. This is a reinvestment.
• You can schedule a reinvestment either when you buy your original security or up to four business days before the original
security matures.
• Once you schedule a reinvestment, you can edit or cancel it up to four business days before the original security matures.

Redeem

To redeem an FRN in TreasuryDirect, you don’t need to act. On the day the security matures, we deposit its proceeds into your bank account or, if you so specify, into your Certificate of Indebtedness (C of I).

Selling

To sell an FRN held in TreasuryDirect, first transfer the security to a bank or broker, then ask the bank or broker to sell it for you.

To transfer an FRN from TreasuryDirect to a bank or broker:

  1. Go to “Manage Direct”
  2. Choose “Transfer securities”
  3. Identify the security or securities you want to transfer
  4. Choose “External Transfer”
  5. Click the link for the FS Form 5511, “TreasuryDirect Transfer Request”
  6. Complete FS Form 5511 and mail it to us as directed on the form

Transferring

From the Commercial Book-Entry System to TreasuryDirect

If you hold Floating Rate Notes (FRNs) through a broker or bank, you can have your broker or bank transfer the securities to TreasuryDirect.

  1. Open an account in TreasuryDirect. (If you already have an account, you may skip this step.)
  2. Give your bank or broker the following information:
  • Receiving bank name: TREASURYDIRECT (all capital letters, no spaces)
  • ABA number: 051736158
  • Your TreasuryDirect account number

From TreasuryDirect to the Commercial Book-Entry System

You can transfer FRNs from TreasuryDirect to the commercial book-entry system. In the commercial system, you own the securities through a broker or bank.

In TreasuryDirect, under “ManageDirect®,” choose the appropriate option for making a transfer and supply the requested information. You’ll be asked for the routing number and name of the financial institution to which you’re making the transfer.

Note: Certain transfers require you to submit a paper form. When a form is required, a message displays with a link to the form needed for your transaction.

Transfer within TreasuryDirect

You may transfer an FRN to a primary account, custom account, or minor linked account.

  1. In TreasuryDirect, under “ManageDirect,” choose the appropriate option for making a transfer and supply the requested information.
  2. Provide the recipient's Social Security Number and TreasuryDirect account number when transferring to another primary account.

Note: Certain transfers require you to submit a paper form. When a form is required, a message displays with a link to the form.