Treasury Notes — TreasuryDirect (2024)

FAQs

What are current Treasury note rates? ›

Treasury notes, backed by the U.S. government, offer a very low risk of default, making them a secure choice for risk-averse investors. CDs are also low-risk since the Federal Deposit Insurance Corp.

Go to your TreasuryDirect account. Choose the Buy Direct tab. Follow the prompts to choose the security you want, specify the amount you want to buy, and fill in the information required.

Bonds typically mature in 20-30 years and offer investors the highest interest payments to maturity. T-notes mature between two and 10 years, with bi-annual interest payments, while T-bills have the shortest maturity terms—from four weeks to a year.

Both bonds and notes pay interest every six months.

Choosing between a CD and Treasuries depends on how long of a term you want. For terms of one to six months, as well as 10 years, rates are close enough that Treasuries are the better pick. For terms of one to five years, CDs are currently paying more, and it's a large enough difference to give them the edge.

Cons of Investing in Treasury Bonds

Interest rate risk: As interest rates ascend, the value of existing bonds with lower interest rates tends to diminish, potentially leading to capital losses if the bonds are sold prior to maturity.

What is the minimum purchase amount for Treasury marketable securities? The minimum amount that you can purchase of any given Treasury Bill, Note, Bond, TIPS, or FRNs is $100.

3 Month Treasury Bill Rate is at 5.25%, compared to 5.25% the previous market day and 5.09% last year. This is higher than the long term average of 4.19%. The 3 Month Treasury Bill Rate is the yield received for investing in a government issued treasury security that has a maturity of 3 months.

Interest income from Treasury bills, notes and bonds - This interest is subject to federal income tax, but is exempt from all state and local income taxes.

How long does it take to get money from TreasuryDirect? ›

You just bought a security from the U.S. Treasury. Securities are generally issued to your account within two business days of the purchase date for savings bonds or within one week of the auction date for Bills, Notes, Bonds, FRNs, and TIPS.

We sell Treasury Bills (Bills) for terms ranging from four weeks to 52 weeks. Bills are sold at a discount or at par (face value). When the bill matures, you are paid its face value. You can hold a bill until it matures or sell it before it matures.

Are Treasury bills taxed as capital gains? Normally no. However, if you buy a T-bill in the secondary market and then achieve a profit, you may be liable for capital gains depending on your exact purchase price.

6 Month Treasury Rate is at 5.37%, compared to 5.39% the previous market day and 5.35% last year. This is higher than the long term average of 2.85%. The 6 Month Treasury Bill Rate is the yield received for investing in a US government issued treasury security that has a maturity of 6 months.

6 Month Treasury Bill Rate is at 5.16%, compared to 5.14% the previous market day and 5.12% last year. This is higher than the long term average of 4.49%. The 6 Month Treasury Bill Rate is the yield received for investing in a US government issued treasury bill that has a maturity of 6 months.

1 Year Treasury Rate is at 5.09%, compared to 5.11% the previous market day and 5.24% last year. This is higher than the long term average of 2.96%.

U.S. Treasuries are exempt from state and local income taxes. Most interest income earned on municipal bonds is exempt from federal income taxes.