Treasury Notes
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, 7, and 10 years.
You can buy notes from us in TreasuryDirect. (Notes no longer are sold in Legacy Treasury Direct, which is being phased out.)
NOTE: 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.
You also can purchase notes through a bank or broker.
You can hold a note until it matures or sell it before it matures.
Use Treasury Notes to:
- Finance education
- Supplement retirement income
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Original Issue Rate: | The yield determined at auction. See rates in recent auctions |
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 Increment: | Multiples of $100 |
Issue Method: | Electronic |
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Rates & Terms
- The price of a note can be greater than, less than, or equal to the note's face value. For a complete description of price, see Treasury Notes: Rates & Terms.
- Notes pay interest every six months until maturity. At maturity, the face value of the note is paid to the owner.
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 Notes-Related FAQs
- What are the maturity terms for Treasury notes?
- How do I know when notes will be auctioned?
- Do you still issue notes in paper form?
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