Treasury Notes
Treasury notes, sometimes called T-Notes, earn and pay a fixed rate of interest every six months until maturity. Fixed-principal notes are issued in terms of 2, 3, 5, and 10 years. You can buy Treasury notes directly from the U.S. Treasury or through a bank or broker. To buy a Treasury note through the U.S. Treasury, you place a competitive or noncompetitive bid in an auction.
- Noncompetitive: You agree to accept whatever yield is determined at auction.
- Competitive: You specify the yield you will accept at auction.
You can hold a note until maturity or sell it prior to maturity at the current market rate.
Use Treasury Notes to:
- Finance education
- Supplement retirement income
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| Original Issue Rate: |
The yield awarded in the original corresponding competitive auction.
See rates in recent auctions |
| Minimum purchase: |
$1,000 |
| Maximum purchase: |
Non-competitive: $5 million
Competitive: 35% of offering amount
(see types of bidding) |
| Investment Increment: |
Multiples of $1,000 |
| Issue Method: |
Electronic entry into your account |
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Rates & Terms
- Fixed-principal Treasury notes are issued for periods of 2, 3, 5, and 10 years.
- Interest is paid on a semiannual basis. When the note matures the principal is paid.
- Notes 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 Notes-Related FAQs
- What are the maturity terms for Treasury notes?
- Can I buy Treasury notes electronically?
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