Treasury Bills vs. Notes vs. Bonds: What’s the Difference?
Treasury bonds, notes and bills are U.S. government debt securities that mainly differ in their terms and the interest they pay.
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Treasury bills, notes and bonds are three types of investments issued and backed by the U.S. government.
All three are sold in increments of $100.
The biggest difference between the three is how long it takes for each one to reach maturity:
Another difference? Treasury notes and bonds pay a fixed interest rate every six months until they mature.
Treasury bills don’t pay a fixed interest rate. You buy them at a discounted rate and you get the face value when the bill matures.
Video: Different types of Treasurys
» Learn more in our Treasury bonds vs. notes vs. bills explainer