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Glossary

Treasury security

A Treasury security is a loan to the US federal government, such as a Treasury bill, note or bond, repaid on a set date, with interest.

Updated September 15, 2026

A Treasury security is a loan to the US federal government. You lend money, the government pays interest, and it repays the face value (the amount promised at the end) on the maturity date.

Treasury bills have terms from four weeks to 52 weeks and are usually sold at a discount: you might pay $975 for a $1,000 bill and collect $1,000 at maturity, earning $25 of interest. Treasury notes run 2, 3, 5, 7 or 10 years and Treasury bonds 20 or 30 years; both pay a fixed rate of interest every six months.

Through TreasuryDirect, the government's website, the minimum purchase is $100. Interest is subject to federal income tax but exempt from state and local income taxes. Selling before maturity can bring less than you paid, and inflation can reduce what those fixed payments will buy.

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How this definition was made

  • Written by an AI model (Claude) following Teloria's editorial standard.
  • Every factual claim was checked by a separate AI fact-check against official US government and regulator sources.

Official sources consulted