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Treasury Bills, Notes, and Bonds: Matching Payments to Your Time Horizon

Treasury bills, notes, and bonds all represent federal debt, but their maturity schedules and interest-payment patterns differ. Those differences affect when you receive cash and how long the security is designed to remain outstanding. This guide compares the main fixed-principal Treasury products, including short-term cash management bills. It helps readers distinguish a product's maturity from a plan to sell it early and understand which purchases are available through TreasuryDirect.

Adapted from public-domain educational material published by U.S. Treasury. Fynoptic has organized and edited the material and added introductory and practical guidance. Sources were reviewed on October 28, 2026; original publication dates, where available, are listed below.

Separate an interest payment from the return of principal

A bill and a coupon-paying security can produce cash at different times even when their quoted yields look similar. A bill generally pays its face amount at maturity; the difference between its purchase price and face amount is the interest. A note or bond makes periodic interest payments, while principal is due at maturity. Receiving a coupon does not mean the original investment has become available to spend.

For a practical comparison, write a timeline showing the date of purchase, each expected cash payment, and the final maturity date. Place the expense you are saving for on the same timeline. If that expense occurs before maturity, you would need another source of cash or would have to sell the security. The maturity date is therefore more useful than the broad product name when planning a specific expense.

Also distinguish ordinary Treasury bills from cash management bills. The latter are issued to meet particular financing needs and do not follow the same regular term pattern. Check the announcement and the purchase channel rather than assuming every short-term Treasury issue can be bought through the same TreasuryDirect screen.

Treasury Bills

We sell Treasury Bills (Bills) for terms ranging from four weeks to 52 weeks.

Bills are sold at a discount or at par (face value). When the bill matures, you are paid its face value.

You can hold a bill until it matures or sell it before it matures.

Note about Cash Management Bills: We also sell Cash Management Bills (CMBs) at various times and for variable terms. Cash Management Bills are only available through a bank, broker, or dealer. We do not sell them in TreasuryDirect.

Bills at a Glance

Now issued in Electronic form only
Matures in 4, 6, 8, 13, 17, 26, and 52 weeks
Also, see the note above about Cash Management Bills.
Interest rate Fixed at auction. For bills, "interest" is the difference between what you paid and the face value you get when the bill matures.
See Results of recent Bill auctions.
Also see Understanding pricing and interest rates.
Interest paid When the bill matures
Minimum purchase $100
In increments of $100
Maximum purchase $10 million (non-competitive bid)
35% of offering amount (competitive bid)
(See Buying a Treasury marketable security for information on types of bids.)
Auction frequency Every four weeks for 52-week bills
Weekly for 4, 6, 8, 13, 17, 26-week bills
No regular schedule for Cash Management Bills
See the Auction calendar for specific dates.
Taxes Federal tax due on interest earned
No state or local taxes
Eligible for STRIPS? No

Treasury Bonds

We sell Treasury Bonds for a term of either 20 or 30 years.

Bonds pay a fixed rate of interest every six months until they mature.

You can hold a bond until it matures or sell it before it matures.

Treasury Bonds are not the same as U.S. savings bonds

EE Bonds, I Bonds, and HH Bonds are U.S. savings bonds. For information, see U.S. Savings Bonds.

Bonds at a Glance

Now issued in Electronic form only
Matures in 20 or 30 years
Interest rate The rate is fixed at auction. It does not vary over the life of the bond.
It is never less than 0.125%.
See Interest rates of recent bond auctions.
Interest paid Every six months until maturity
Minimum purchase $100
In increments of $100
Maximum purchase $10 million (non-competitive bid)
35% of offering amount (competitive bid)
(See Buying a Treasury marketable security for information on types of bids.)
Auction frequency 4 per year (original issue)
8 per year (reopenings)
See the Auction calendar for specific dates.
Taxes Federal tax due each year on interest earned
No state or local taxes
Eligible for STRIPS? Yes

Latest Rates

20 Year Bond 30 Year Bond See All Rates

Treasury Notes

We sell Treasury Notes for a term of 2, 3, 5, 7, or 10 years.

Notes pay a fixed rate of interest every six months until they mature.

You can hold a note until it matures or sell it before it matures.

Notes at a Glance

Now issued in Electronic form only
Matures in 2, 3, 5, 7, or 10 years
Interest rate The rate is fixed at auction. It doesn’t change over the life of the note.
It is never less than 0.125%.
See Results of recent note auctions.
Interest paid Every six months until maturity
Minimum purchase $100
In increments of $100
Maximum purchase $10 million (non-competitive bid)
35% of offering amount (competitive bid)
(See Buying a Treasury marketable security for information on types of bids.)
Auction frequency 2, 3, 5, and 7-year notes: Monthly
10-year notes: Feb., May, Aug., Nov.
Reopenings of 10-year notes: 8 times/year
See the Auction calendar for specific dates.
Taxes Federal tax due each year on interest earned.
No state or local taxes
Eligible for STRIPS? Yes

Latest Rates

10-Year Notes See All Rates

Cash Management Bills

Putting this into practice

Choose the cash-flow dates you need before comparing product labels. A security that matures after your spending deadline may require an earlier market sale. Review how interest is paid, where you can purchase the issue, and how its term fits the money's intended purpose.

Sources and further reading

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