Government Investing: Treasury Products

TreasuryDirect offers a range of Treasury consumer securities to meet your short- and long-term needs as you build your savings. As always, security is our strength. Take a look.

Treasury Bills
Treasury bills are short-term government securities with maturities ranging from a few days to 26 weeks. Bills are sold at a discount from their face value.

Treasury bills, or T-bills, are sold in terms ranging from a few days to 26 weeks. Bills are sold at a discount from their face value. For instance, you might pay $970 for a $1,000 bill. When the bill matures, you would be paid $1,000. The difference between the purchase price and face value is interest.

You can buy bills from us in TreasuryDirect and Legacy Treasury Direct through non-competitive bidding. NOTE: At this time, only individuals can hold accounts in TreasuryDirect.

Treasury Notes
Treasury notes are government securities that have maturities of 2, 3, 5 and 10 years and earn interest every six months.

Treasury notes, sometimes called T-Notes, earn a fixed rate of interest every six months until maturity. Notes are issued in terms of 2, 3, 5, and 10 years.

You can buy notes from us in TreasuryDirect and Legacy Treasury Direct. NOTE: At this time, only individuals can hold accounts in TreasuryDirect.

Treasury Bonds
Treasury will sell a 30 year bond in February 2006. Bonds earn interest every six months.

The U.S. Treasury resumed issuance of Treasury bonds with a 30-year bond auctioned in February 2006. The next auction is scheduled for August 2006.

Treasury bonds pay interest every six months until they mature.

You can buy Treasury bonds from us in TreasuryDirect and Legacy Treasury Direct. NOTE: At this time, only individuals can hold accounts in TreasuryDirect

Treasury Inflation-Protected Securities (TIPS)
TIPS are marketable securities whose principal is adjusted by changes in the Consumer Price Index.

Treasury Inflation-Protected Securities, or TIPS, provide protection against inflation. The principal of a TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index. When a TIPS matures, you are paid the adjusted principal or original principal, whichever is greater.

TIPS pay interest twice a year, at a fixed rate. The rate is applied to the adjusted principal; so, like the principal, interest payments rise with inflation and fall with deflation.

You can buy TIPS from us in TreasuryDirect and Legacy Treasury Direct through non-competitive bidding. NOTE: At this time, only individuals can hold accounts in TreasuryDirect.

I Bond
Low-risk savings product that earns interest while protecting you from inflation. Sold at face value.

I Bonds are a low-risk, liquid savings product. While you own them they earn interest and protect you from inflation. You may purchase I Bonds via TreasuryDirect, at most local financial institutions or through payroll deduction. As a TreasuryDirect account holder, you can purchase, manage, and redeem I Bonds directly from your Web browser.

EE Bond
Secure savings product that pays interest based on current market rates for up to 30 years. Sold at face value in My Account. Paper EE Bonds are sold at 1/2 face value.

Series EE savings bonds are safe, low-risk savings products that pay interest based on current market rates for up to 30 years for bonds purchased May 1997 through April 30, 2005*. You may purchase EE Bonds via TreasuryDirect or at almost any financial institution or through your employer's payroll deduction plan, if available. As a TreasuryDirect account holder, you can purchase, manage, and redeem EE Bonds directly from your Web browser.

Use EE Bonds to:
Finance education
Supplement retirement income
Give as a gift

For more information, or to purchase Treasury products, visit the link below:
http://www.treasurydirect.gov/indiv/products/products.htm

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