Treasury bills, notes and I bonds
US Treasury securities are backed by the US government, and their interest is exempt from state and local income tax. TreasuryDirect describes each type; the Treasury publishes daily yields.
Which is which
- Bills: 4 to 52 weeks, sold at a discount.
- Notes and bonds: 2 to 30 years, pay interest every six months.
- TIPS: principal adjusts with inflation.
- I bonds: savings bonds with an inflation-linked rate; annual purchase limits and a minimum holding period apply.
Buy direct or through a broker
TreasuryDirect sells at auction; brokers also offer Treasuries at auction and on the secondary market, where they can be sold before maturity.
Compare with everything else
IncomeGrid has 40,000+ investment options screened, Treasuries included, with risk levels 1–5. IncomeGrid ranks every item by yield after tax for where you live: federal, state and each investment type (Treasuries, municipal bonds, corporate bonds, funds, REITs and filed offerings are each taxed differently).
Compare Treasury yields after tax →
Sources
- TreasuryDirect – Treasury bills
- TreasuryDirect – I bonds
- TreasuryDirect – TIPS
- U.S. Treasury – Daily Treasury par yield curve rates
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