Public.com launches its Treasury Account opening up the US government debt markets to retail investors

Public.com, a popular US investing platform, has introduced an innovative solution to help retail savers and investors trade in the US government debt market, with its new Treasury Account.

What is Public.com’s Treasury Account?

This new offering allows investors to easily access and manage investments in U.S. Treasury Bonds notes and bills, providing them with a higher-yielding alternative to traditional savings accounts.

The Treasury Account is a separate trading account at Public.com that enables investors to purchase and manage a portfolio of US Treasury securities.

These debt instruments are considered among the safest investments available, as they are backed by the “full faith and credit ” of the U.S. government.

Although looking at the state of US finances right now, some may think that’s not what it once was.

What are the key features of Public.com’s Treasury Account?

Key features include:

1. Diverse Maturities: Investors can select from Treasury bills, notes, and bonds with maturities ranging from 3 months out to 30 years.

2. Low Minimum Investment: With a minimum investment of just $100, the Treasury Account is accessible to a wide range of investors.

3. Laddering: Users can create a “Treasury ladder” strategy, investing in securities with staggered maturity dates and different interest rates or coupons as they are known.

4. Automatic Reinvestment: The account offers the flexibility to automatically reinvest both income and principal or simply send this money back to the investor’s brokerage account.

5. Tax Advantages: Income from US Treasury securities is exempt from both state and local taxes, potentially increasing after-tax yields for US taxpayers.

What are the benefits of a Treasury laddering strategy?

Treasury laddering is a key feature of Public.com’s new account.

The strategy involves investing in multiple Treasury securities with different maturity dates and coupons, or investing across the yield curve if you prefer.

The benefits of which include:

• Reduced Interest Rate Risk: By spreading investments across various maturities, investors can mitigate the risk of being locked into a single interest rate. What’s more, when you buy a bond, your yield is locked in from that point onward. Currently, yields range from 4.27% at 1-year maturities out to 4.80% on 20-year bonds.
• Regular Income: The US treasury pays half of its coupon once every six months or semi-annually (excluding short-term bills), which helps to provide investors with known and dependable income. Holding a variety of maturities can mean that this income will persist over time.
• Flexibility: As shorter-term or short-dated securities mature, investors can reinvest the proceeds at higher rates if interest rates or yields have risen.

Public.com offers pre-configured laddering templates for clients to use.

How the Public.com Treasury Account compares to high-yield Savings Accounts

While high-yield savings accounts are popular among risk-averse investors, holding Treasury bills through the Public. Coms Treasury Account may offer several advantages:

Potentially Higher Yields: As of February 2025, Public.com advertises a 4.32% yield on a 26-week T-bill, which looks to be higher than the returns from many high-yield savings accounts.

Tax Benefits: Unlike savings account interest, income from Treasury securities is exempt from state and local taxes

Government Backing: Treasury securities are backed by the full faith and credit of the U.S. government, providing a high level of security

How can I set up a Public.com Treasury account?

Setting up a Treasury Account on Public is straightforward:

Step 1. Create an account on the Public platform.
Step 2. Transfer funds from a linked bank account or via debit card.
Step 3. Select a pre-built Treasury ladder or customise your allocation.

Public.com’s Treasury Account offers a user-friendly way for investors to access U.S. Treasury securities.

By combining the safety of government-backed securities with a laddering strategy, the account could be an attractive option for investors seeking to access low-risk assets and or income.

Though, of course, with any investment decision, it’s important to consider your financial circumstances, risk tolerance, and overall portfolio strategy. And while US Treasury securities do offer many benefits, they should always be viewed as just one part of a wider approach to investment.