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:

  • Treasury bills: Four weeks to one year.

  • Treasury notes: Two to 10 years.

  • Treasury bonds: 20 or 30 years.

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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

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» Learn more in our Treasury bonds vs. notes vs. bills explainer