Delays in transferring certain assets from TreasuryDirect are causing problems for investors.

• The U.S. Department of the Treasury is causing delays for investors trying to transfer certain assets purchased through TreasuryDirect, its platform.
• By purchasing Treasurys through a brokerage account, investors can avoid liquidity problems.

Some investors are experiencing longer waits to transfer certain assets purchased through TreasuryDirect, a platform managed by the U.S. Department of the Treasury, as interest rates decline and they reassess their bond holdings.

In recent years, there has been a surge in demand for government-backed assets sold by TreasuryDirect, as investors have been drawn to Series I bonds with record-high yields amid elevated inflation.

The transfer of other assets, such as Treasurys, from TreasuryDirect to brokerage accounts is taking longer in some cases, with a wait of up to 12 months, according to a report by The Wall Street Journal on Wednesday.

Inflation for September 2024 is detailed in a single chart, according to the Social Security Administration. Additionally, 33% of homeowners would hire a "questionable" contractor to save money, a report states.

But the Treasury said wait times are improving.

The Treasury's Bureau of the Fiscal Service acknowledged that the retail program experiences processing delays due to resource and technology limitations, as stated by a spokesperson to CNBC.

"The website's processing timeframes are intended to provide the longest possible timeframes for complex, difficult cases. However, these timeframes are often shorter and continue to decrease as we allocate more resources," they stated.

The agency plans to modernize its retail program in the future while keeping the customer at the forefront of its solution design, according to the spokesperson.

The benefits of using a brokerage account

Besides I bonds, TreasuryDirect also provides marketable securities such as Treasury bills, Treasury bonds, Treasury-inflation-protected securities, and floating rate notes.

Experts say that the platform is less attractive for investors needing flexibility because they must hold these assets for 45 days before they can sell or transfer them.

According to David Enna, founder of Tipswatch.com, it is not advisable to purchase any items from TreasuryDirect that may need to be sold.

The process of transferring assets from TreasuryDirect to a brokerage account involves several steps, including filling out a form with the signature of an "authorized certifying official at a financial institution," as stated on the website.

Some advisors suggest investing in Treasury assets through a brokerage account to avoid potential liquidity problems.

George Gagliardi, founder of Coromandel Wealth Management in Lexington, Massachusetts, stated that the accessibility and ease of these exchanges are significantly better than the hurdles involved with the Treasury.

Gagliardi stated that while investors pay fees to purchase Treasurys through a brokerage account, the cost is minimal with low-fee options such as exchange-traded funds, particularly for smaller investments.