10-year TIPS reopening gets real yield of 2.653%, highest in nearly 18 years

Posted on September 17, 2026 by Tipswatch

By David Enna, Tipswatch.com

The Treasury’s offering of $19 billion in a reopened Treasury Inflation-Protected Security, CUSIP 91282CRE3, generated a real yield to maturity of 2.653%, the highest for this term since an auction in October 2008.

Investor demand at the auction appeared to be a bit weak, in the wake of a Federal Reserve decision to raise interest rates on Wednesday, and signal that more increases could be coming. The auction’s bid-to-cover ratio was 2.24, the lowest for this term in a year. The “when-issued” prediction used by bond traders was 2.634%. The higher resulting yield indicates less-than-stellar demand.

For today’s auction investors, however, this adds up to good news. The real yield of 2.653% was 22 basis points higher than result for this TIPS’ originating auction on July 23, and a whopping 75 basis points higher than a similar 10-year reopening auction on March 19.

Definition: The “real yield to maturity” of a TIPS is its yield above future U.S. inflation, over the term of the TIPS. So a real yield of 2.653% means an investment in this TIPS will provide a return that exceeds official U.S. inflation by 2.653% for 9 years, 10 months.

Here is the trend in 10-year real yields since January 2025:

Click on image for larger version.

In this chart, I have noted two crucial events: 1) The launch of U.S. tariffs in April 2025 and 2) the beginning of the U.S. war with Iran in March 2026. While tariffs caused real yields to immediately surge, the market returned to normal in a few months. The war with Iran, because of its inflationary dangers and resulting surge in government borrowing, has caused real yields to soar.

This is the path of annual all-items inflation over that same period, showing the apparent inflationary effects of tariffs and the obvious and more severe effects of the war and resulting energy crisis:

Real and nominal yields are rising for a reason. Inflation and government borrowing are not under control.

Pricing

The coupon rate for CUSIP 91282CRE3 was set at 2.375% by the originating auction in July. Because today’s real yield was higher, investors got a discounted unadjusted price of 97.612784. In addition, this TIPS will carry an inflation index of 0.99985 on the settlement date of September 30. With that information, we can calculate the cost of a $10,000 par-value investment at this auction:

  • Par value: $10,000.
  • Adjusted principal on settlement date: $10,000 x 0.99985 = $9,998.50.
  • Cost of investment: $9,998.50 x 0.97612784 = $9,759.81.
  • + accrued interest of $49.69

In summary, the investor paid $9,759.81 for $9,998.50 of principal on the settlement date of September 30. From then on, the investor will earn accruals matching future U.S. inflation, plus an annual coupon rate of 2.375% for 9 years, 10 months. The accrued interest will be returned at the next coupon payment in January.

Inflation breakeven rate

At the auction’s close, the 10-year Treasury note was trading with nominal yield of 4.95%, giving this TIPS an inflation breakeven rate of 2.30%, in line with recent results for this term. It means the TIPS will out-perform the nominal Treasury if inflation averages more than 2.3% over the next 9 years, 10 months.

Over the last 10 years, ending in August, inflation has averaged 3.4%. Here is the trend in the 10-year inflation breakeven rate since January 2025:

Click on image for larger version.

Thoughts

Today’s auction was a very good result for investors, netting the highest real yield since a similar auction in October 2008 — in the heart of a severe financial crisis — went off at 2.85%. There is no evidence of a crisis today, except for the excessive surge in U.S. government and corporate borrowing.

This TIPS will get another reopening auction on November 19 and then a new 10-year TIPS will be auctioned January 21, 2027. That January auction is my current target, so I hope yields remain elevated until then.

Were you an investor? Post your thoughts in the comments section. Here is a history of auctions for this term over the last two years:

• Now is an ideal time to build a TIPS ladder

• Confused by TIPS? Read my Q&A on TIPS

• TIPS in depth: Understand the language

• TIPS on the secondary market: Things to consider

• TIPS investor: Don’t over-think the threat of deflation

• Upcoming schedule of TIPS auctions

—————————

Donate? This site is free and I hope to keep it that way. Some readers have suggested having a way to contribute. I welcome donations, any amount. And FYI, ads on this site pay for about one visit to Costco.

PayPal link / Venmo link

—————————

Follow Tipswatch on X for updates on daily Treasury auctions and real yield trends (when I am not traveling).

Feel free to post comments or questions below. If it is your first-ever comment, it will have to wait for moderation. After that, your comments will automatically appear. Please stay on topic and avoid political tirades. NOTE: Comment threads can only be three responses deep. If you see that you cannot respond, create a new comment and reference the topic.

David Enna is a financial journalist, not a financial adviser. He is not selling or profiting from any investment discussed. I Bonds and TIPS are not “get rich” investments; they are best used for capital preservation and inflation protection. They can be purchased through the Treasury or other providers without fees, commissions or carrying charges. Please do your own research before investing.

Posted in Federal Reserve, Inflation, Investing in TIPS, Tariffs | Tagged , , | 15 Comments

Here’s an illustrated guide to TreasuryDirect’s new login process

Posted on September 14, 2026 by Tipswatch

By David Enna, Tipswatch.com

Based on reader feedback I’ve seen, it looks like most people are having no problems logging into TreasuryDirect‘s new system once they have completed verifying a login account with ID.me.

That’s good. The bigger problem, of course, is completing the ID.me verification process, which requires several steps. We are now in the “soft-launch” stage but an ID.me account will be required for access to TreasuryDirect beginning October 28.

This is a video created by the Social Security Administration to walk a user through the ID.me account-creation process. (I have no idea why TreasuryDirect has not created a similar video for its site):

The video details how a registrant using a computer would have to complete the process using a phone with a camera. The verification process is complex and can sometimes fail, especially when taking a “selfie photo.”

For more information, check ID.me’s guide to account setup.

The TreasuryDirect login

Once ID.me verification is properly completed, logging into TreasuryDirect is a simple process, as many readers have reported. TreasuryDirect did create a video for this part of the process. Here is the link (the video is not yet on YouTube).

My personal experience

As I have noted in past articles, my wife and each have a TreasuryDirect account. In the past, both accounts were linked to my email, so I could log into both and manage investments. My wife’s account is our “main account,” combining I Bonds (some redeemed this year) with a few T-bills and long-ago TIPS purchases. This is the account with the all-important tax documents. My account holds only I Bonds, and none have been redeemed in 2026.

My wife is currently traveling overseas. Before she left she attempted to set up an ID.me account, but I think that process was not completed. So set-up for that account will have to wait a few weeks.

Reminder: Under the ID.me process, one user will be able to manage a personal account and trust or entity accounts connected to that Social Security number and email address. But one user will not be able to manage two personal accounts with a single ID.me account.

I decided to go ahead and complete the login process for my account with ID.me, to get an idea of the experience. As readers have noted, it was simple, pretty much matching the TreasuryDirect video. Here’s a visual look:

Click login on the main page.

Click Secure Sign In to go to this intermediary page:

And then …

Enter the email address connected to your ID.me account.

And then the password.

Select the multi-factor authentication method. This step seems a bit odd to me, because a text message with “fair security” is offered as an option. But at least for me, using a desktop computer, the text message was the only option. The passkey option required — possibly — a fingerprint, which can’t be done on my computer.

I have used this process before for the IRS and have always used the text-message option. Just make sure to have your phone nearby.

Confirm the “text me” and check that the phone number digits match your device. I have hidden the numbers in this example.

Check your phone for the text message and enter it on this screen.

Authorize this information to be shared with TreasuryDirect. I believe that TD already has all this information, but the info is likely needed to confirm your login identity matches your account.

Confirm that TreasuryDirect can keep this information (which it already had) that was shared by the third-party provider (ID.me).

Select the account you want to access. In my case, the only option was my personal account. (My wife will need to log in separately for her account.) A person with both a personal and trust or entity accounts should see those options listed. You can log into one account at a time.

Conclusion

If you have a working ID.me account, linking it to your personal TreasuryDirect account is a simple process. That’s my experience. And I am going to give TreasuryDirect and ID.me credit for apparently working through most of the speed bumps, despite a very short launch path. (All logins will switch to ID.me on Oct. 28.)

But there many, many potential complexities. Please talk about your success and/or failures in the comments section.

Also see:

—————————

Donate? This site is free and I hope to keep it that way. Some readers have suggested having a way to contribute. I welcome donations, any amount. And FYI, ads on this site pay for about one visit to Costco.

PayPal link / Venmo link

—————————

Follow Tipswatch on X for updates on daily Treasury auctions and real yield trends (when I am not traveling).

Feel free to post comments or questions below. If it is your first-ever comment, it will have to wait for moderation. After that, your comments will automatically appear. Please stay on topic and avoid political tirades. NOTE: Comment threads can only be three responses deep. If you see that you cannot respond, create a new comment and reference the topic.

David Enna is a financial journalist, not a financial adviser. He is not selling or profiting from any investment discussed. I Bonds and TIPS are not “get rich” investments; they are best used for capital preservation and inflation protection. They can be purchased through the Treasury or other providers without fees, commissions or carrying charges. Please do your own research before investing.

Posted in I Bond, Savings Bond, Social Security, TreasuryDirect | Tagged , , | 41 Comments

This week’s 10-year TIPS auction has strong appeal

Posted on September 13, 2026 by Tipswatch

By David Enna, Tipswatch.com

The U.S. Treasury on Thursday will offer $19 billion in a reopened 10-year Treasury Inflation-Protected Security, CUSIP 91282CRE3. I’d expect demand to be strong, despite recent Treasury-market volatility. This TIPS looks attractive.

CUSIP 91282CRE3 had its originating auction on July 23, when it got a real yield to maturity of 2.438%, the highest at auction for this term since October 2008. The auction set its coupon rate at 2.375%.

This week’s auction looks likely to go even higher. CUSIP 91282CRE3 trades on the secondary market, and closed Friday with a real yield of 2.59%. If that yield holds through the auction, we are entering rare air. In the last 20 years, there have been 114 auctions of this term. These are the only ones with real yields exceeding 2.0%:

Note the time span in this chart, which includes only auctions before 2010 or after 2023. TIPS investors suffered through a 13-year period with much lower real yields, even as low as -1.145% as recently as five years ago. Of course, 10-year real yields could continue climbing higher, but getting anywhere near 2.5% is an investing opportunity, especially held to maturity.

Definition: The “real yield to maturity” of a TIPS is its yield above future U.S. inflation, over the term of the TIPS. So a real yield of 2.59% means an investment in this TIPS would provide a return that exceeds official U.S. inflation by 2.59% for 9 years, 10 months.

Here is the trend in the 10-year real yield over the last 20 years, showing that today’s 10-year real yield has now surpassed the recent highs set in fall 2023:

Click on image for larger version.

Pricing

CUSIP 91282CRE3 is going to auction at below par value. That is pretty much guaranteed because the current real yield of 2.59% is well above the coupon rate of 2.375%, plus the inflation index on the settlement date of September 30 will be 0.99985. It is slightly less than par because of very slightly negative (-0.01%) non-seasonally-adjusted inflation in July 2026.

CUSIP 91282CRE3 closed Friday with a price of 98.13. Let’s estimate the cost for a par value investment of $10,000 at this auction, assuming the real yield holds at 2.59% (it won’t, but this is an estimate):

  • Par value: $10,000.
  • Adjusted principal on settlement date: $10,000 x 0.99985 = $9,998.50.
  • Cost of investment: $9,998.50 x 0.9813 = $9,811.53.
  • + accrued interest of about $49.70.

Again, this is an estimate and market conditions will change by Thursday. In this example, the investor pays $9,811.53 for $9,998.50 in principal on the settlement date. From then on, the investor earns inflation accruals matching official inflation, plus an annual coupon of 2.375% paid on adjusted principal. The accrued interest will be returned at the first coupon payment in January.

Inflation breakeven rate

The 10-year Treasury note closed Friday with a nominal yield of 4.97%, which gives this TIPS a current inflation breakeven rate of 2.38%, in the range of recent auctions for this term. That number seems reasonable. Inflation over the last 10 years, ending in August, has averaged 3.4%.

We have to wonder, though, when that 10-year note’s nominal yield starts to look too tempting to ignore. At 5%, we are getting pretty close. But I would still prefer the TIPS for the added benefit of inflation protection.

Here is the trend in the 10-year inflation breakeven rate over the last 20 years:

Click on image for larger version.

Since late 2022, we have seen a remarkably stable pattern of 10-year inflation expectations, ranging from about 2.2% to 2.5%. As I always point out, inflation breakevens are just a measure of sentiment and are a lousy predictor of future inflation.

Thoughts

This will be an attractive auction. Keep in mind, though, that CUSIP 91282CRE3 trades on the secondary market and can be purchased at any time you see a real yield you like. The advantage of buying at auction is that even small-lot purchases will get the auction’s high yield. The advantage of the secondary market is that you can see exactly the price and real yield you will be receiving. The negative is that you may face a small bid-ask spread.

At this point, I am not bothering to recommend buying at TreasuryDirect, at least until we get through this ID.me verification mess. Remember that savings bonds are the only securities you can redeem at TreasuryDirect. Everything else needs to be transferred out to be sold, which can take months.

Thursday’s auction is likely to generate a real yield around 2.5%, which we haven’t seen at auction for this term since October 2008, in the heart of a major financial crisis. Real yields could continue rising, of course, but this is an attractive milestone for a hold-to-maturity investor.

This TIPS auction closes Thursday at 1 p.m. ET. Non-competitive bids at TreasuryDirect must be placed by noon Thursday. If you are putting an order in through a brokerage, make sure to place your order Wednesday or very early Thursday, because brokers cut off auction orders before the noon deadline.

I will be posting the auction results soon after the close on Thursday. Here is a history of auction results for this term over the last 5 years:

• Now is an ideal time to build a TIPS ladder

• Confused by TIPS? Read my Q&A on TIPS

• TIPS in depth: Understand the language

• TIPS on the secondary market: Things to consider

• TIPS investor: Don’t over-think the threat of deflation

• Upcoming schedule of TIPS auctions

—————————

Donate? This site is free and I hope to keep it that way. Some readers have suggested having a way to contribute. I welcome donations, any amount. And FYI, ads on this site pay for about one visit to Costco.

PayPal link / Venmo link

—————————

Follow Tipswatch on X for updates on daily Treasury auctions and real yield trends (when I am not traveling).

Feel free to post comments or questions below. If it is your first-ever comment, it will have to wait for moderation. After that, your comments will automatically appear. Please stay on topic and avoid political tirades. NOTE: Comment threads can only be three responses deep. If you see that you cannot respond, create a new comment and reference the topic.

David Enna is a financial journalist, not a financial adviser. He is not selling or profiting from any investment discussed. I Bonds and TIPS are not “get rich” investments; they are best used for capital preservation and inflation protection. They can be purchased through the Treasury or other providers without fees, commissions or carrying charges. Please do your own research before investing.

Posted in Federal Reserve, Inflation, Investing in TIPS, TreasuryDirect | Tagged , , | 32 Comments

U.S. inflation holds at 3.4% for August. Will that lead to a rate hike?

Posted on September 11, 2026 by Tipswatch

Plus, what’s ahead for investors in TIPS and I Bonds?

By David Enna, Tipswatch.com

U.S. all-items inflation rose 0.4% on a seasonally adjusted basis in August, up from 0.1% in July. The annual rate held at 3.4%, matching expectations, the BLS reported today.

Core inflation, which strips out food and energy, increased 0.3% for the month, higher than expectations. Annual core inflation came in at 2.4%, falling from 2.5% in July and matching expectations. None of this looks like market-shaking news, except that U.S. inflation remains too high, especially for U.S. consumers who drive cars, travel by plane, and need a place to live.

The price index for gasoline rose 3.9% in August, accounting for more than one third of the monthly all-items increase, the BLS said. Gas prices are up 27.4% over the last year. More troubling is the price of fuel oil, up 10.1% for the month and 52% for the year. Also in the report:

  • Shelter costs rose 0.3% in August, after rising only 0.1% in each of the prior two months. These costs are up 3% year over year.
  • Food at home prices were flat for the month and up 2.2% for the year.
  • Costs of apparel were flat for the month but up 3.6% for the year.
  • New vehicle costs rose 0.3% for the month, but only 0.6% for the year.
  • Used vehicle costs rose 0.4% in August but are down 2.3% for the year.
  • Airline fares rose 2.2% for the month and 23.4% for the year.
  • Costs of motor vehicle insurance fell 0.3% for the month and are down 5.1% for the year.
  • Costs of wireless telephone services jumped 5.9% in August. This seems to be an oddball rise that happens once or twice a year and may not effect that many customers, immediately.

Inflation analyst Michael Ashton noted the wireless increase (which is 1.47% of CPI) and said:

That basically adds up to the miss on core CPI. Do you think the Fed is going to hike rates because cell phone service prices jumped? That’s the bet you’re making if you think the high core CPI forces the Fed to hike.

A key takeaway is that energy and shelter were strong elements in the rise in August inflation. Food prices remain a moderating force. Here is the trend in all-items and core inflation over the last 12 months, showing the obvious effects of the war with Iran, which began in late February:

What this means for TIPS and I Bonds

Investors in Treasury Inflation-Protected Securities and Series I Savings Bonds are also interested in non-seasonally adjusted inflation, which is used to adjust principal balances of TIPS and set future interest rates for I Bonds. For August, the BLS set the CPI-U inflation index at 334.980, an increase of 0.32% over the July number.

For TIPS. The August number means that principal balances for all TIPS will increase 0.32% in October, after falling 0.01% in September. For the year ending in October, principal balances will have increased 3.4%. Here are the new October Inflation Indexes for all TIPS.

For I Bonds. August marks the fifth month of a six-month string that will determine the I Bond’s next inflation-adjusted variable rate, to be reset November 1 based on inflation from April to September 2026. After five months, inflation has increased 1.44%, which translates to a variable rate of 2.88%. One month remains and it looks likely the variable rate will end up around 3.4% to 3.5%, higher than the current 3.34%. Here are the data:

View historic data on my Inflation and I Bonds page.

Also, it continues to look likely that the I Bond’s fixed rate will rise to 1.30% at the November reset, up from the current 0.90%. I’ll be writing about that next month.

The Social Security COLA

The Social Security cost-of-living adjustment is based on an unusual inflation index – CPI-W – and is determined by averaging the indexes for July, August, and September and comparing that number to the same average for the year before. For August, the BLS set the CPI-W index at 328.481, up 0.4% from July.

The key is to compare the third-quarter averages — 2026 versus 2025, currently showing an increase of 3.3%. My projection was for an increase of 3.6%, which might have been too high. But we might still get there.

What this means for future interest rates

A week ago Federal Reserve Governor Christopher Waller moved markets by saying he was inclined to support holding interest rates steady at next week’s Fed meeting, but the decision would depend on the August inflation report.

So we’ve seen the report: What do we think? The numbers mostly matched expectations, except that monthly core was a tick high at 0.3%. Annual core fell a notch to 2.4%. Some of that price moderation could be caused by the effects of higher gas prices, which deplete other consumer spending.

This morning’s Bloomberg headline says: “Hotter Core CPI Adds Pressure for Fed to Hike Rates.” I think I prefer the Wall Street Journal headline: “Firm Inflation Reading Pushes Fed Closer to Rate Increase.” This wasn’t a blazing hot inflation report, but it did indicate that even core inflation, minus the effect of gas prices, isn’t waning. From Bloomberg:

Economists said the report adds to the case for the Fed to raise interest rates on Sept. 16. Initial calculations suggested that the proportion of categories showing elevated increases – a metric that Chairman Kevin Warsh has put a spotlight on – failed failed to retreat in the month. …

The Fed prefers the PCE inflation gauge. So Citigroup economists calculate that after today’s CPI and yesterday’s PPI, the core PCE for August is tracking a 0.29% month-on-month increase. That would be a three-month high for that rate. Too hot to be consistent with the Fed’s 2% inflation annual inflation target. …

Looking ahead, there’s more inflationary pressure in the pipeline. The average retail price of diesel fuel just topped $6 a gallon, according to this morning’s AAA report.

Inflation analyst Ashton had this to say:

Don’t get me wrong. This isn’t a beautiful inflation number. But if the FOMC is being honest, it shouldn’t move the needle.

The Fed is powerless to have much of an effect on energy prices, which have shot higher because of the effects of the war with Iran. But as a symbolic move, both to the markets and the White House, a 25-basis point increase seems appropriate next week. That would back up Fed Chairman Kevin Warsh’s recent hawkish statements.

Plus, if Warsh decides to favor holding rates steady, he could face major dissent on the Fed’s Open Market Committee. It would be better to look unified. I’d say a rate increase is coming.

—————————

Donate? This site is free and I hope to keep it that way. Some readers have suggested having a way to contribute. I welcome donations, any amount. And FYI, ads on this site pay for about one visit to Costco.

PayPal link / Venmo link

—————————

Follow Tipswatch on X for updates on daily Treasury auctions and real yield trends (when I am not traveling).

Feel free to post comments or questions below. If it is your first-ever comment, it will have to wait for moderation. After that, your comments will automatically appear. Please stay on topic and avoid political tirades. NOTE: Comment threads can only be three responses deep. If you see that you cannot respond, create a new comment and reference the topic.

David Enna is a financial journalist, not a financial adviser. He is not selling or profiting from any investment discussed. I Bonds and TIPS are not “get rich” investments; they are best used for capital preservation and inflation protection. They can be purchased through the Treasury or other providers without fees, commissions or carrying charges. Please do your own research before investing.

Posted in Federal Reserve, I Bond, Inflation, Investing in TIPS, Social Security | Tagged , , | 18 Comments

TreasuryDirect provides more guidance on ID.me transition

Posted on September 9, 2026 by Tipswatch

By David Enna, Tipswatch.com

The Treasury sent an updated email over the weekend again alerting investors that TreasuryDirect will soon require using ID.me for login verification.

This change has become quite contentious, accelerating since my August 17 post on this topic. That article now has 205 reader comments (and rising).

ID.me will go live with a soft launch on September 13 and then become the sole login allowed on October 28. The email says:

You can still use your traditional TreasuryDirect login until October 28, 2026. At that time, ID.me will replace your traditional TreasuryDirect login. If you don’t set up ID.me, your account, funds, and investments will remain safe, and you can easily restore online access at any time after October 28, 2026, by completing the ID.me setup process and linking your TreasuryDirect account(s).

Treasury also updated its FAQ page on this transition with some new information that raises new questions. Here is the link to the FAQ. Let’s talk about some of the new details.

Logging in

Will I be required to use ID.me to access my TreasuryDirect account after October 28, 2026?

Yes. After October 28, 2026, ID.me will be the only method to log in to your TreasuryDirect account. You will have the option to use your traditional TreasuryDirect login between September 13, 2026, and October 28, 2026.

If you do not sign up and/or connect your TreasuryDirect account(s) to ID.me by October 28, 2026, you can easily restore online access at any time by completing the ID.me setup process and linking your TreasuryDirect account(s).

Thoughts. It is interesting that Treasury uses the (s) after the word account, which implies it might be possible to access multiple personal accounts with one login. That is not likely. The reference likely applies to people who manage trust and entity accounts.

Will I be permanently locked out of my account on October 28, 2026, if I haven’t set up ID.me yet?

No. After October 28, 2026, only your online access to your TreasuryDirect account will be restricted until you complete the ID.me verification. If you choose not to verify your identity with ID.me by that date, you will not be able to access TreasuryDirect online, but your funds will not be permanently frozen or seized after the deadline. Your funds and investments will remain safe, and you can easily restore access at any point in the future by simply going through the ID.me setup process.

Thoughts. You have only one option: Set up ID.me for access to your account.

What if I don’t want to sign up for ID.me? Can I still use my traditional TreasuryDirect login to access TreasuryDirect?

Temporarily. Your traditional TreasuryDirect login can be used up until October 28, 2026, throughout the optional period for signing up for ID.me. If you do not have an ID.me Wallet after October 28, 2026, you will not be able to log in to TreasuryDirect.

How will I access my tax documents if I am locked out of my account due to ID.me verification issues or do not sign up for ID.me?

ID.me will be the simplest way to access TreasuryDirect for online retrieval of your tax documents for the current tax year. However, you may request 1099 tax forms for the current tax year be mailed to by contacting TreasuryDirect Customer Support at 844-284-2676 (toll-free) after TreasuryDirect makes those forms available in January of the following tax year.

Thoughts. This is new information, and should be reassuring for people worried about next year’s tax documents. Even if you unload all TreasuryDirect investments this year, you will need those 1099s next year.

Privacy and security

Will ID.me have access to my financial data or know the balance of my TreasuryDirect investments?

No. ID.me is used strictly for online digital identity verification and single sign on (SSO) to TreasuryDirect. ID.me does not have access to your TreasuryDirect account balances, your transaction history, or your linked personal bank account information. Once ID.me verifies that you are the correct individual, they pass a secure digital security key to TreasuryDirect to log you in. Your personal assets remain completely private and isolated inside the secure Treasury system. …

Your data is accessible only by the authorized identity verification system and personnel bound by strict confidentiality obligations.

Your data is never sold. Neither TreasuryDirect nor ID.me sells, rents, or shares your personal information with third parties for marketing or advertising purposes. ID.me acts solely as an identity provider.

Thoughts. Again, this is new information. It will require some “trust” from investors. I’ll point out that once you set up your ID.me Wallet, you will probably be exposed to some shopping opportunities on the company’s site.

What information is shared between ID.me and TreasuryDirect?

To keep your account secure, ID.me securely shares your full name, SSN, date of birth, mailing address, e-mail, and phone number with TreasuryDirect. ID.me does not have access to your TreasuryDirect account balances, your transaction history, or your linked personal bank account information.

Thoughts. That is a lot of personal information stored with a private company, and the reason a lot of investors are objecting.

Why is TreasuryDirect not using Login.gov instead of ID.me?

TreasuryDirect is using ID.me because it aligns with Treasury security requirements and those used by the Internal Revenue Service (IRS), ensuring it meets the highest Federal identity verification and fraud-prevention standards. … If you already have a Login.gov account, you will still need to verify your identity through ID.me for TreasuryDirect access.

Thoughts. This squashes speculation that Login.gov will be another alternative, as it is on the Social Security site and others.

Account setup questions

Important things to watch out for when setting up ID.me.

After signing in or completing your ID.me setup, you’ll be returned to TreasuryDirect and can continue using your account as usual. You won’t need your TreasuryDirect account number for this process, although it’s helpful to keep it handy for future support needs.

Do not try to use your old login: Attempting to type in your traditional TreasuryDirect login information after linking to ID.me will result in an error. Always use the “Secure Sign In” button.

Check your ID.me details first: Make sure the name on your ID.me Wallet matches the name on your TreasuryDirect account exactly to avoid delays. …

Once you link your TreasuryDirect account to ID.me, your traditional TreasuryDirect login and personalized security image are retired.

RED FLAG. A couple things are alarming here: 1) Once you use ID.me to log in, even during the ramp-up period, you will be locked out of using the legacy system. ID.me will be your only way in. 2) What about the many users who use one email to log in to two accounts, for example for a married couple? The ID.me Wallet is not likely to match the name on both accounts.

What this means. Do not rush to use ID.me on September 13. Let’s let other brave souls try it and report back. I really don’t want to use two ID.me accounts (and two 2-step verification systems) to log into our two accounts. Many of you also have trust and entity accounts. Who wants to volunteer?

Additional security steps?

ID.me has different levels of security for different purposes. Your existing ID.me Wallet may not meet the security level requirements for TreasuryDirect, so you may be required to complete additional identity verification to meet these requirements before you can use ID.me to log in to TreasuryDirect.

Thoughts. No real information here, so the brave souls who go first can report back on the “additional” verification needs.

Can I use the same ID.me Wallet for multiple TreasuryDirect accounts?

Yes, if you manage other accounts, you will have a single login to access them.

Thoughts. If true, this is very good news for investors with trust or entity accounts. But then we get the bad news …

Can my spouse and I use the same ID.me Wallet or the same email address?

No. ID.me is a personal identity verification service so each person must have their own unique ID.me Wallet tied to their own unique e-mail address. You cannot share an ID.me Wallet or use the same e-mail address for multiple verified identities, even if you share a household or bank account.

Thoughts. In my case, my usual log in is to the account with my wife as the primary owner (and me as secondary). Both of our accounts are connected to my email. I have no idea if I will still be able to access the main account. If I have to use her ID.me login, then she will need to be standing by every time to provide two-step verification. Also, is there a high chance that her ID.me login will glitch because of the mismatched emails?

I manage an entity account, such as a corporation, trust, or estate. How will ID.me verification work for entity account managers?

For entity accounts like businesses or trusts, ID.me verifies the individual account manager (using their government-issued information) rather than the entity itself. The person in charge of the entity (such as the POA, manager or trustee) must verify their personal identity through ID.me first. While your personal details will be kept safe, private, locked, and managed by ID.me, the business or trust details can still be updated with help from TreasuryDirect Customer Support.

Thoughts. Seems like this is a solution for those asking about trust and entity accounts.

Final thoughts

Read through the entire FAQ page, which does provide additional information. I have submitted a series of additional questions to ID.me, but have not yet gotten answers. If I do, I will publish those before September 13, if I can.

My key takeaway: If you intend to continue using TreasuryDirect, go ahead and complete the ID.me verification process. But do not rush to log in during the September 13 to October 28 “trial period.” Use that time to log in conventionally and get your account(s) in order, canceling reinvestments if need be, redeeming savings bonds, etc. Plus, verify your holdings at TreasuryDirect.

Maybe the ID.me transition process will be smooth. I suspect not.

—————————

Donate? This site is free and I hope to keep it that way. Some readers have suggested having a way to contribute. I welcome donations, any amount. And FYI, ads on this site pay for about one visit to Costco.

PayPal link / Venmo link

—————————

Follow Tipswatch on X for updates on daily Treasury auctions and real yield trends (when I am not traveling).

Feel free to post comments or questions below. If it is your first-ever comment, it will have to wait for moderation. After that, your comments will automatically appear. Please stay on topic and avoid political tirades. NOTE: Comment threads can only be three responses deep. If you see that you cannot respond, create a new comment and reference the topic.

David Enna is a financial journalist, not a financial adviser. He is not selling or profiting from any investment discussed. I Bonds and TIPS are not “get rich” investments; they are best used for capital preservation and inflation protection. They can be purchased through the Treasury or other providers without fees, commissions or carrying charges. Please do your own research before investing.

Posted in Cash alternatives, Estate planning, I Bond, Savings Bond, TreasuryDirect | Tagged , , , , , | 90 Comments