Treasury Bonds
The Treasury Department stopped issuing fixed-principal Treasury bonds, sometimes called T-Bonds, in October 2001. Nonetheless, many are still unredeemed and earning interest, with a significant number of years remaining until maturity.
Treasury bonds earn and pay a fixed rate of interest every six months until they mature. Bonds are a long-term investment, maturing in up to 30 years.
Use Treasury Bonds to:
- Diversify your investment portfolio
- Finance education
- Supplement retirement income
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| Investment Increments: |
Multiples of $1,000 (when issued) |
| Purchase Method: |
Treasury bonds no longer are issued. |
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Rates & Terms
- Issuing of fixed-principal Treasury bonds was suspended as of October 2001.
- Outstanding fixed-principal bonds have terms from 10 to 30 years.
- Interest is paid on a semi-annual basis until it matures. When a bond matures, the initial principal is paid.
- 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
- When was the last time you sold fixed-principal Treasury bonds?
- Will you ever sell fixed-principal Treasury bonds again?
- Do I receive semiannual interest payments if I own a Treasury bond?
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