Treasury Accounts are now available to all
Now, investors can earn the secure, fixed yield of US Treasuries in the same place where they invest in stocks, ETFs, crypto, and alternative assets.
Today, we’re excited to announce that Treasury Accounts are available to all Public members. Members can now take advantage of the current 5.1% yield of Treasury bills — an even higher yield than a high-yield savings account — while also receiving the flexibility and ease of access to cash of a typical bank account.*
In 2023, Public members have shown an increasing interest in fixed-income assets as they look to create more balance and stability in their portfolios. We’re introducing Treasury Accounts to meet this demand, offering members a low-risk, high-yielding account where they can park their cash — all in the same platform where they can also invest in stocks, ETFs, crypto, and alternative assets.
What are Treasuries?
Treasury bills, or T-bills, are short-term debt securities issued by the US Treasury with maturity periods ranging from 4 to 52 weeks. T-bills are purchased at a discount to their face value and paid back in full when they reach maturity. When you purchase a T-bill, you essentially lend money to the government for a specified period of time to support various public projects, and in return, you get a yield, which is like interest on your loan. Because T-bills are backed by the full faith and credit of the US government, they are considered to be one of the safest investments available.
Why Treasuries?
With inflation at 40-year highs, it’s more important than ever for people to get more from their cash. As the Federal Reserve continues to raise interest rates, T-bill yields have climbed higher than they’ve been in over a decade. And, because T-bills are a fixed-rate asset, they provide a guaranteed rate of return that is increasingly appealing to investors as they navigate volatility in the markets.
Treasuries also offer some notable advantages to traditional savings accounts. The yield tends to be higher — currently, the yield for T-bills is 5.1%, while competitive high-yield savings accounts offer an average of 4.0% APY, and traditional savings accounts offer an average of 0.2% APY.**
Treasuries come with tax advantages as well. Unlike savings and high-yield savings accounts, Treasuries are exempt from state and local taxes. As a result, individuals who live in highly-taxed states can hold onto a significantly higher portion of their return than they might in a cash account.
And while Treasuries have always offered investors security and tax advantages, they’ve typically been cumbersome to invest in. Historically, T-bills could only be purchased directly from the U.S. Department of the Treasury, through Treasury auctions with a brokerage account, or on the secondary market.
With Treasury Accounts, we’re changing that.
What is a Treasury Account?
A Treasury Account is a new account type from Public that allows members to easily put their cash in US Treasuries and earn a secure, fixed yield.
When you deposit into a Treasury Account on Public, it’s immediately invested into 26-week T-bills. These T-bills are automatically reinvested at maturity to ensure compounding yield, and because T-bills are a fixed-rate asset, your yield is locked in at the time of your deposit.***
T-bills are held securely in custody at The Bank of New York Mellon, the world’s largest custodian bank and securities services company. If you need access to your funds, you can sell your T-bills at any time — even before maturity.
Deposits can be made with as little as $100, and anytime you make an additional deposit, your funds will be used to purchase the most recent T-bill.**** You can track the yield of all of your T-bills directly on Public.
At Public, we’re on a mission to make the public markets work for all people, and that means evolving alongside market conditions and creating the tools our members need to drive them towards their financial goals. We’re excited to offer a modernized approach to investing in US Treasuries and continue to expand into new asset categories that offer significant value to our members.
***
*26-week T-bill rate (as of 2/21/23) when held to maturity. Rate is gross of fees.
**As compared to the average of the best high-yield savings accounts, compiled by Bankrate.com as of 1/31/23. Public is not responsible for the accuracy, timeliness, or completeness of information on third-party websites. Open to the Public Investing is not a bank and does not offer savings accounts. You should contact your bank for current and complete information about available account types, including applicable interest rates. Risks.
*** Rate of return is annualized and assumes holding T-bill until maturity.
**** Deposits below $100 may be permitted, but may not be invested.
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.
Investments in T-bills: Not FDIC Insured — No Bank Guarantee — May Lose Value
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.
Full disclosures are at public.com/disclosures.
