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Choose among Treasury bills, notes, and bonds by when you may need the money and whether you want scheduled interest payments. Bills mature within a year and pay their return at maturity; notes run 2–10 years and bonds run 20 or 30 years, with both paying interest every six months. Notes and bonds can sell for more or less than face value if you exit before maturity.
How bills, notes, and bonds differ
All three are marketable U.S. Treasury securities, but their terms and cash-flow schedules differ. The terms below are listed by TreasuryDirect as of October 7, 2026.
| Security | Terms | How it pays | Potential fit |
|---|---|---|---|
| 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 the purchase price and face value is the interest. | A shorter time horizon or a preference for receiving the proceeds 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. | An intermediate horizon or a preference for scheduled interest payments. |
| Treasury bonds | 20 or 30 years | Interest paid every six months. | A long horizon and willingness to accept market-price fluctuations if selling before maturity. |
Terms and payment descriptions: TreasuryDirect’s Treasury Bills, Treasury Notes, and Understanding Pricing and Interest Rates. The potential-fit column is a general comparison, not an individualized recommendation.
Which Treasury security fits your goal?
If you may need the money soon
Compare bill terms that end before you expect to need the funds. A bill’s return is realized at maturity, when you receive its face value; it does not provide the scheduled six-month interest payments that notes and bonds do.
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If you want interest payments during the term
Notes and bonds pay interest every six months. Notes have 2-, 3-, 5-, 7-, and 10-year terms; bonds have 20- or 30-year terms. Choose a term with your expected holding period in mind, rather than assuming a longer maturity means a higher return.
If you might sell before maturity
Marketable Treasuries can be sold before they mature, but the sale price is not guaranteed to equal face value. For notes and bonds, price depends in part on how the security’s interest rate compares with the yield to maturity: when yield to maturity is higher than the stated interest rate, the price is below face value; when yield is lower, the price is above face value. See TreasuryDirect’s pricing explanation.
How to buy Treasury bills, notes, or bonds
Individuals can buy directly through TreasuryDirect or through a bank, broker, or dealer. TreasuryDirect accepts noncompetitive bids only; competitive bids go through a bank, broker, or dealer. When you place a TreasuryDirect order, you do not know the interest rate in advance because it is set at auction.
- Choose a purchase route. Use TreasuryDirect for a noncompetitive bid, or contact a bank, broker, or dealer about its Treasury purchase process. The Treasury does not designate financial institutions to sell securities; check the institution’s own services and terms.
- Select the security and term. Match the bill, note, or bond maturity to when you expect to use the money and consider whether you want six-month interest payments.
- Set your bid amount if buying through TreasuryDirect. The minimum bid is $100, and bids increase in $100 increments.
- Review the auction outcome. The rate is determined at auction, so it is not known when you schedule the TreasuryDirect purchase.
Details: TreasuryDirect’s buying instructions and How Treasury Marketable Securities Work.
Marketable Treasuries are not savings bonds
Bills, notes, and bonds discussed here are marketable securities: they can be transferred and sold before maturity. U.S. savings bonds are a different Treasury product and should not be treated as interchangeable with these auctioned securities. TreasuryDirect describes marketability and secondary-market access in About Treasury Marketable Securities and its marketable securities FAQs.
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