Direct Investments

Direct investments allow eligible depositaries to receive a portion of the Treasury's excess operating cash  directly into their Treasury Investment Program (TIP) Main Account based upon their current capacity level, which is determined by collateral value, balance limit and Main Account balance. When the Treasury initiates an investment, your Reserve account or designated correspondent's Reserve account is credited. These funds are held in the participating financial institution's Main Account and may be withdrawn when the Treasury requests the balances, if collateral is deficient, or at the request of the financial institution.

Requirements include:

  • Completion of the Treasury Tax & Loan (TT&L) Offer to Receive Direct Investments form
  • Selection of same-day or one-day prior notification
  • Funds must be fully collateralized

Direct Investments are distributed among participating institutions according to one of the following types of notification.

Same-Day Notification

Your institution will receive notice of a Direct Investment the same day the funds are to be credited to your Reserve account.

A financial institution that elects to be a "same-day notification" participant also is considered as a "one-day notification" participant. When the Treasury announces investments, they are targeted to a specific group: for example, the Treasury may issue a one-day Direct Investment to be deposited with one-day participants only, or a one-day Direct Investment to be deposited with same-day participants only.

Same-Day Capacity

  •    Collateral Value or Balance Limit (whichever is lower)
  • — Main Account balance
  • = Same-Day Capacity

One-Day Prior Notification

Your institution will receive notice of a Direct Investment one business day prior to the day the funds are credited to your Main Account.

One-Day Capacity

  •    Collateral Value or Balance Limit (whichever is lower)
  • — Main Account balance
  • — Pending investments
  • + Pending Withdrawals
  • = One-Day Capacity

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