Business & Finance Investing & Financial Markets

How to Invest in Bonds Versus Bond Funds

    • 1). Apply for an account with Treasury Direct (see Resources). The link for new account applications is on the homepage in the right column. You will need your name, a U.S. address, Social Security number, email address and information for a bank checking or savings account.

    • 2). Obtain your Treasury Direct access card. The card will be mailed to you about two weeks after you complete the application. The access card contains security information necessary to purchase Treasury bonds.

    • 3). Study the information on the Treasury Direct website about the different types of Treasury securities. Note the auction dates and minimum-investment amounts for the different bills, notes and bonds. This is a useful activity while waiting for your access card to arrive.

    • 4). Log in to your Treasury Direct account using the security information from your access card. Select "Buy Direct" to take you to the purchase screen.

    • 5). Enter the types of Treasury bonds and amounts you want to purchase. Review the purchase details and place the order for the bonds. The money to pay for the bonds will be withdrawn from the bank account you linked to during the application process.

    • 6). Check your account after the appropriate auction date to find the price and yield of your bond purchase. The bonds should show in your account about four days after the bond auction.

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