Treasury Bonds
Treasury bonds pay a fixed rate of interest every six months until they mature. They are issued in a term of 30 years.
You can buy Treasury bonds from us in TreasuryDirect (but not in Legacy Treasury Direct which is being phased out). Effective April 2009, TreasuryDirect permits accounts for both individuals and various types of entities including trusts, estates, corporations, partnerships, etc. See Learn More about Entity Accounts for full information on the new registration types.
Use Treasury bonds to:
- Diversify your investment portfolio
- Finance education
- Supplement retirement income
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| Minimum Purchase: | $100 |
| Maximum Purchase (in a single auction): |
Non-competitive: $5 million Competitive: 35% of offering amount (See types of bidding in "Auctions in Depth") |
| Investment Increments: | Multiples of $100 |
| Issue Method: | Electronic |
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Rates & Terms
- Bonds pay interest every six months until they mature. When a bond matures, the owner is paid the face value of the bond.
- Bonds can be held until maturity or sold before maturity.
Redemption Information
- Minimum Term of Ownership: None
- Interest Earning Period: To maturity
Tax Considerations
- Interest income is exempt from state and local income taxes.
- Interest income is subject to federal income tax.
Treasury Bonds-Related FAQs
- How can I place a competitive bid for a Treasury bond?
- How do I transfer a Treasury bond from *Legacy Treasury Direct to TreasuryDirect?
- Do some Treasury bonds still exist in paper form?
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*Legacy Treasury Direct is being phased out.
