Investors who use the treasury department to move funds to their brokerage accounts may now have to wait up to 12 months for funds to become available due to an explosion in customer service requests. The number of accounts on their website, TreasuryDirect.com, rose from 656,000 in 2019 to 4 million this year, largely due to the increased interest in government securities and the ease of online transactions. Understandably, their customer service team is currently overloaded, resulting in delays for money transfers. 

Treasury Direct usually tries to complete the transfer within six weeks. However, they use an antiquated system that requires paper forms and verified signatures, usually sent by mail. Now, the process may take 6-12 months or longer, removing the bond’s biggest selling point.

 If you use TreasuryDirect, what are your next steps?

First, don’t panic if you can’t get your money immediately or if customer service could be more helpful. Wait times are improving as more resources are used to deal with the problem at hand. Importantly, improvements and modernization’s are being made to their system, so future instances like this will be manageable. This ongoing work should give you confidence in the system’s future reliability.

If you cannot wait to access your funds, talk with your broker or financial advisor about the next steps. Waiting patiently may be the only option, but a professional may have other options to deal with the process or move other funds within your portfolio to achieve your goals.

If you are thinking of buying an I bond from Treasury Direct. It is important to note that if you will need the money soon, there are better investments for you. Moving the funds can take months and involves a multi-step process. Again, talk with your financial advisor or broker to assess whether this type of bond is right for you. Their professional advice can help you make informed decisions about your investments.

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