How to Buy Treasury Bonds with Revolut

Can I Buy Treasury Bonds on Revolut?

Revolut does not offer the option to invest directly in US Treasury Bonds or other government securities. Despite its extensive range of financial services and investment options, this particular feature is not available on the platform. If you wish to include treasury bonds in your investment strategy, you will need to explore other financial institutions or online platforms that provide access to these securities.

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How to Buy Treasuries with Revolut

Customers of Revolut can invest in US Treasury Bonds by transferring funds from their accounts to regulated brokers in their jurisdiction. Although Revolut does not directly facilitate the purchase of US Treasury Bonds, users can add treasury products, like the iShares U.S. Treasury Bond ETF (GOVT) or iShares 20+ Year Treasury Bond ETF (TLT), to their portfolios through platforms such as eToro.

Here's a simple step-by-step guide:

1. Account Setup: Create an account on eToro and complete the necessary verification to fully activate your account.
2. Funding Your Account: Click on the 'Deposit Funds' button at the bottom left corner of eToro. Select your local currency and choose a payment method to transfer funds from your Revolut account.
3. Finding Treasury Products: Use eToro's search feature to locate the US Treasury bond ETFs you are interested in.
4. Investment Execution: Follow the prompts to invest in your chosen Treasury bond ETFs through eToro.

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What are the Fees?

The costs associated with buying treasury bonds can vary significantly depending on the platform. Investors typically encounter transaction fees, spread fees, and management fees when investing in Treasury ETFs. These fees differ widely between platforms and specific treasury products.

For example, if you invest in the iShares U.S. Treasury Bond ETF (GOVT), you will incur an expense ratio, which is the annual fee that funds charge their shareholders. The expense ratio for GOVT is currently 0.05%, which is relatively low compared to other ETFs.

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Treasury Bonds vs Treasury ETFs

Treasury Bonds and Treasury ETFs both relate to government debt but have distinct structures and benefits. Treasury Bonds are direct government obligations with fixed interest rates and specific maturity dates, offering low-risk and predictable returns. Conversely, Treasury ETFs are investment funds that hold a range of Treasury Bonds or notes, providing exposure to various maturities and interest rates.

While Treasury Bonds offer stability and direct ownership, Treasury ETFs provide greater flexibility and diversification. However, Treasury ETFs may incur additional fees and are more sensitive to market fluctuations, whereas Treasury Bonds are generally steadier, long-term investments.

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Bottom Line

In summary, while Revolut does not offer direct investment in US Treasury Bonds, customers can still add these assets to their portfolios by using other platforms like eToro. By transferring funds from Revolut to a regulated brokerage, users can access Treasury ETFs such as the iShares U.S. Treasury Bond ETF (GOVT).

It's important to consider the various fees associated with these investments, including transaction and management fees.