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TreasuryDirect C of I Changes: Where Payments and Existing Cash Balances Go

TreasuryDirect's zero-percent Certificate of Indebtedness once served as a place to hold cash within an account. Treasury changed that arrangement in 2026, including the destination for payments and the handling of remaining balances. This guide explains the published transition instructions and why current bank-account information matters. It helps account holders understand an automatic redemption or redirected payment instead of treating the old cash-holding feature as a continuing destination for new proceeds.

Adapted from public-domain educational material published by U.S. Treasury. Fynoptic has organized and edited the material and added introductory and practical guidance. Sources were reviewed on October 28, 2026; original publication dates, where available, are listed below.

Is Zero-Percent C of I changing?

Yes. As of August 24, 2026, C of I is no longer available as a payment destination. If C of I was designated as your payment destination, your primary bank account automatically became your payment destination.

Also, starting in late August 2026 through Fall 2026, TreasuryDirect will attempt to update customer accounts on a rolling basis so that any C of I customers hold will be automatically redeemed and deposited to their primary bank account on file. TreasuryDirect will notify you when this occurs.

Why is C of I no longer a payment destination in TreasuryDirect?

This change was made to simplify the payment and redemptions process. Customers can still fund purchases directly from their linked bank account as a secure, reliable method for purchasing Treasury securities. Moving forward, your primary bank account is your payment destination.

Why can’t I send money from my bank account into C of I using BuyDirect?

This change simplifies the payment and redemptions process. TreasuryDirect is encouraging you not to keep money in your C of I as it does not earn interest. You can use the funds you may already have there to purchase interest-bearing securities or send the money to your bank account. You can also purchase interest-bearing securities using money from your bank account.

Note that, starting in late August 2026 through Fall 2026, TreasuryDirect will also attempt to update customer accounts on a rolling basis so that any C of I customers hold will be automatically redeemed and deposited to their primary bank account on file. TreasuryDirect will notify you when this occurs.

There is no required action as part of this change, but to make sure your redemptions and interest payments are issued seamlessly, TreasuryDirect recommends reviewing the primary bank account information on your TreasuryDirect account. You can view your current bank information by navigating to the Account Info tab, then selecting “Bank Information” under the Other Account Information section.

Is Zero-Percent C of I going away?

Yes, C of I is no longer available as a payment destination as of August 24, 2026. If C of I was designated as your payment destination, your primary bank account automatically became your payment destination.

What happens if my payment destination is currently C of I and not my bank account?

As of August 24, 2026, C of I is longer available as a payment destination. If C of I was designated as your payment destination, your primary bank account automatically became your payment destination.

How do I redeem my C of I?

To redeem your C of I, log into your TreasuryDirect account, navigate to the ManageDirect tab, select the “Redeem Securities” link and the radio button “C of I”, then choose a payment destination bank. Visit the following link to learn more about redeeming C of I.

What happens if I don't redeem my C of I?

Starting in late August 2026 through Fall 2026, TreasuryDirect will attempt to update customer accounts on a rolling basis so that any C of I customers hold will be automatically redeemed and deposited to their primary bank account on file. Until you receive an email from TreasuryDirect notifying you that this change has occurred, you can still redeem your C of I and use it to purchase Treasury securities.

I have C of I in my account and it wasn’t automatically redeemed and deposited to my primary bank account on file. Why do I not see this change reflected?

This automatic redemption is happening on a rolling basis, beginning in late August 2026 and continuing through Fall 2026. If you still have C of I, you will receive an email from TreasuryDirect notifying you when it has been redeemed and deposited. Note there may be instances where TreasuryDirect is unable to redeem and deposit C of I for some accounts, due to certain extenuating circumstances, such as an issue with your bank account. If you have received a notification that your C of I has been redeemed and deposited and you do not see these funds in your primary bank account within three business days, contact the TreasuryDirect contact center at 844-284-2676 (toll-free) Monday through Friday, from 8 a.m. to 6 p.m. ET to resolve any issue that may be resulting in payment failure.

Is there a deadline for redeeming C of I?

No, while there is no deadline to redeem C of I, once C of I is no longer available as a payment destination and beginning in late August through the Fall of 2026, any C of I you hold will be automatically redeemed and deposited to your primary bank account on file. Until this update is implemented, any C of I you currently hold is not affected and is still available to purchase Treasury marketable securities or be redeemed.

Is redeeming my C of I mandatory?

Not currently, but, once C of I is no longer available as a payment destination and after late August and throughout Fall 2026, any C of I you hold will be automatically redeemed to your primary bank account on file. Until this update is implemented, any C of I you currently hold is not affected and is still available to purchase Treasury marketable securities or be redeemed. You are encouraged to redeem C of I now to ensure you can make the most of your investment since C of I doesn’t accrue interest.

Still having trouble?

If you can't find the answer to your question, call the TreasuryDirect contact center at 844-284-2676 from Monday-Friday, 8 am-6 pm ET.

Putting this into practice

Review the primary bank account shown in TreasuryDirect and reconcile any payment or automatic redemption notice with bank records. Existing balances may be handled during a transition rather than all at once. Use Treasury's current instructions if an expected transfer has not appeared or the bank information needs correction.

Sources and further reading

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