Apr 29, 2010
Bucko's Bucks - Buying Treasuries Directly
Treasury Bills: Treasury bills are short-term government securities with maturities ranging from a few days to 52 weeks. Bills are sold at a discount from their face value. This is the one I am interested in investigating. The bill is issued with a par value, and when it redeems you get face value. The difference between par and face is the interest rate. Interest is exempt from state and local taxes.
Treasury Notes: Treasury notes are government securities that are issued with maturities of 2, 3, 5, 7, and 10 years and pay interest every six months.
Treasury Bonds: Treasury bonds pay interest every six months and mature in 30 years.
Treasury Inflation-Protected Securities (TIPS): TIPS are marketable securities whose principal is adjusted by changes in the Consumer Price Index. TIPS pay interest every six months and are issued with maturities of 5, 10, and 30 years.
I Savings Bonds: I Savings Bonds are a low-risk savings product that earn interest while protecting you from inflation. Sold at face value. Check out our table that is a comparison of TIPS and Series I Savings Bonds.
EE/E Savings Bonds: EE/E Savings Bonds are a secure savings product that pay interest based on current market rates for up to 30 years. Electronic EE Savings Bonds are sold at face value in TreasuryDirect. Paper EE Savings Bonds are sold at 1/2 face value.
How Do You Do It???
What you need: Driver's License, SSN, Bank Routing Info
How: Choose a password, password reminder, and additional security questions and we'll send you an e-mail with your account number. We will also send you an Access Card in the mail within the next two weeks. Your account number, password, and Access Card are needed to log into your TreasuryDirect account.