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Choose among Treasury bills, notes, and bonds mainly by when you expect to need the money and whether you want scheduled interest payments. Bills mature within a year and pay their return at maturity; notes and bonds pay interest every six months but run for several years or decades. If you sell a note or bond before it matures, its market price may be above or below its face value.
How Treasury bills, notes, and bonds differ
These are marketable securities issued by the U.S. Treasury. The terms below are listed by TreasuryDirect as of October 7, 2026. The practical-fit column is a way to compare their features, not an individualized investment recommendation.
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| Security | Term to maturity | How it pays | May fit when |
|---|---|---|---|
| Treasury bills | 4, 6, 8, 13, 17, 26, or 52 weeks | Sold at a discount or at par; you receive face value at maturity. The difference between what you paid and face value is the interest. | You expect to use the money within a year or prefer the return at maturity rather than periodic interest. |
| Treasury notes | 2, 3, 5, 7, or 10 years | Fixed interest rate set at auction, paid every six months. | Your time horizon is intermediate and you want scheduled interest payments. |
| Treasury bonds | 20 or 30 years | Interest paid every six months. | You have a long time horizon and can tolerate price changes if you might sell before maturity. |
Terms and payment mechanics are described by TreasuryDirect’s Treasury Bills page, Treasury Notes page, and Understanding Pricing and Interest Rates.
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If you may need it within a year
Compare bill maturities with the date you expect to need the funds. Bills have listed terms from 4 to 52 weeks, so you can consider a maturity closer to your expected date rather than selecting a multi-year security. A bill’s return is realized at maturity, not as six-month interest payments.
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If you can leave it invested for several years
Notes have terms of 2, 3, 5, 7, or 10 years and pay interest every six months. Consider whether the maturity aligns with your plans; choosing a longer term does not, by itself, establish that you will earn a higher return.
If your horizon is measured in decades
Bonds mature in 20 or 30 years and pay interest every six months. Their longer term makes the possibility of selling before maturity particularly important to consider: the sale price may differ from face value.
Understand the cash flow and early-sale risk
Bills: return at maturity
A bill is sold at a discount or at par, and the Treasury pays its face value at maturity. The purchase-price-to-face-value difference is the interest. This payment structure may suit someone who does not need periodic coupon payments.
Notes and bonds: interest every six months
Notes and bonds pay interest twice a year. Their market price can be above or below face value. TreasuryDirect explains that when a security’s yield to maturity is higher than its stated interest rate, its price is below par; when the yield is lower, its price is above par. This matters if you sell before maturity, because the sale price is not guaranteed to equal face value.
Marketable means a security can be transferred or sold before it matures, but marketability is not a promise of a particular price. TreasuryDirect explains this in About Treasury Marketable Securities and its FAQs About Treasury Marketable Securities.
How to buy a Treasury bill, note, or bond
- Choose a purchase route. Individuals can buy through TreasuryDirect or through a bank, broker, or dealer. TreasuryDirect says it does not designate financial institutions to sell Treasury securities; see How Treasury Marketable Securities Work.
- If using TreasuryDirect, place a noncompetitive bid. TreasuryDirect accepts noncompetitive bids only. The auction sets the rate, so you do not know it in advance when scheduling the purchase.
- Meet the TreasuryDirect purchase minimum. Its minimum bid is $100, with bids in $100 increments. For bid instructions and purchase details, see Buying a Treasury Marketable Security.
- If you want to submit a competitive bid, use a financial institution. Competitive bids go through a bank, broker, or dealer rather than TreasuryDirect.
Do not confuse marketable Treasuries with savings bonds
Treasury bills, notes, and bonds are marketable securities: they can be transferred or sold in the secondary market before maturity. Savings bonds are a different Treasury product and should not be treated as interchangeable with these securities. TreasuryDirect’s marketable securities overview explains the distinction.
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