Learn More About Security Types
The TreasuryDirect product line consists of the following security types, offered by the U.S. Department of the Treasury. Interest paid on Treasury securities is subject to Federal tax, but exempt from State and Local tax. For more information, view Treasury Securities and Programs.
Savings Bonds
Series E Savings Bond: An E Bond is an accrual-type security with interest added to the bond on the first day of each six-month accrual cycle and paid upon redemption. E bonds that have not reached final maturity earn interest for up to 30 years at either guaranteed or market-based rates. You may hold E bonds in your TreasuryDirect account if paper securities have been converted to electronic form; however, they are not available for purchase.
Series EE Savings Bond: An EE Bond is an accrual-type security with interest added to the bond monthly or semiannually (depending upon the original issue date) and paid upon redemption. Interest rates vary depending upon the original issue date. Series EE savings bonds issue dated on or after May 1, 2005 will earn a fixed rate of interest. EE bonds earn interest for up to 30 years.
Series I Savings Bond: An I Bond is an accrual-type security with interest added to the bond monthly and paid when the bond is redeemed. The I bond interest rate is based upon a combination of a fixed rate of return and a variable semiannual rate. I bonds grow in value with inflation-indexed earnings for up to 30 years.
Marketable Securities
Bills: U.S. Treasury Bills are a type of short-term security of one year or less. Bills sold through our system come in 4, 13, 26, and 52-Week maturities and are issued at a discount. The discount is the amount the security is lowered from its face value and is considered the earned interest when the security matures. For example, if you purchase a $10,000 26-Week Bill at $9,750 and hold it until maturity, the interest you earn is $250. Minimum purchase is $100 with multiples sold in the same increment. The maximum amount for a noncompetitive purchase is $5 million.
Notes: U.S. Treasury Notes are a type of medium-term security of 2 to 10 years. Notes are fixed-principal securities. After purchase, interest payments are paid to your selected payment destination every six months until maturity, when the principal is paid. The interest rate is determined at the time of auction. Minimum purchase is $100 with multiples sold in the same increment. The maximum amount for a noncompetitive purchase is $5 million.
Bonds: U.S. Treasury Bonds are a type of long-term fixed-principal security of more than 10 years. After purchase, interest payments are paid every six months until maturity, when the principal is paid. The interest rate is determined at the time of auction. Minimum purchase is $100 with multiples sold in the same increment. The maximum amount for a noncompetitive purchase is $5 million.
Treasury Inflation-Protected Security (TIPS): TIPS are a type of medium to long-term security of 5 to 20 years. They come in 5, 10, and 20-Year maturities and have a fixed interest rate with the value of the principal being adjusted semiannually, based upon changes in the Consumer Price Index – Urban (CPI-U). After purchase, interest payments are paid to your selected payment destination every six months until maturity. Your investment is always protected from inflation because the interest rate is applied to the adjusted principal, so if inflation occurs, your interest earned increases. You won’t lose money on your investment during a deflationary period either, since Treasury pays the greater of either the inflation-adjusted principal or the original face value of the security. Minimum purchase is $100 with multiples sold in the same increment. The maximum amount for a noncompetitive purchase is $5 million.