Safety

All U.S. Treasuries are backed by the full faith and credit of the United States. Because of this, U.S. Treasury notes, bonds and bills (also known as Treasuries) are recognized by world financial markets as one of the safest and most reliable investment instruments available. The U.S. Department of the Treasury issues these treasuries in various maturities up to 30 years.

Yield

Notes and bonds pay interest semiannually. Interest is calculated using an actual monthly day count and an actual annual day count, and notes and bonds settle one day after trade (T+1).

Diversity

U.S. Treasury securities offer high liquidity, with secondary market capabilities available and a wide range of maturity dates. They are tax-exempt from local and state governing bodies, most are non-callable and bills, notes and bonds are issued on a daily, monthly or quarterly basis.

Limitations

Treasuries have market risk associated with fluctuations in interest rates like any fixed-income security. They often offer the lowest returns because of their high degree of safety and liquidity and with longer-term issues possessing more price volatility than shorter-term instruments.

Requirements

You can buy Treasuries directly from the U.S. Treasury or through a bank or brokerage firm such as Multi-Bank Securities, Inc. (MBS). To purchase through MBS, you need to open an account.