Learn More About Payroll Zero-Percent Certificate of Indebtedness

The Payroll Zero-Percent Certificate of Indebtedness (Payroll C of I) is a Treasury security that does not earn any interest. It is intended to be used as a source of funds for purchasing Series EE and Series I Savings Bonds through the Payroll Savings Plan in TreasuryDirect.

The only way to fund your Payroll C of I is to set up a regular payroll allotment/direct deposit with your employer and have the payroll office send the allotment/direct deposit to your TreasuryDirect account.

For more information and to learn how to set up a Payroll Savings Plan, see Learn more about the Payroll Savings Plan and How do I purchase savings bonds in TreasuryDirect?.

The incoming credits from your payroll office will result in the purchase of a Payroll C of I within your TreasuryDirect account. Each time your Payroll C of I balance reaches your designated purchase amount, a savings bond will be issued. (For example, if your payroll allotment/direct deposit is $10 each pay period, and you have chosen a purchase amount of $25, after your third allotment/direct deposit is received, a $25 savings bond will be purchased from your Payroll C of I and the remaining balance will be $5 until the next allotment/direct deposit is received.)

You may redeem all or part of your Payroll C of I by going to ManageDirect and selecting the Redeem Securities text link. You may choose to redeem the full amount or a partial amount. You must select a payment destination bank for your Payroll C of I. Note: Redemption of your Payroll Zero-Percent C of I does not stop your payroll allotment/direct deposit.

All Payroll C of I purchase and redemption activity is conveniently recorded in your C of I History.

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