Treasury Bonds
Treasury bonds pay a fixed rate of interest every six months until they mature. They are issued in a term of 20 years or 30 years.
You can buy Treasury bonds from us in TreasuryDirect. You also can buy them through a bank or broker. (We no longer sell bonds in Legacy Treasury Direct, which we are phasing out.)
You can hold a bond until it matures or sell it before it matures.
Use Treasury bonds to:
- Diversify your investment portfolio
- 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 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: In TreasuryDirect, 45 days
- 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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