Investing in U.S. Government securities continues to be a safe investment with modest returns and tax
advantages. These securities are sold by the U.S. Department of the Treasury Bureau of the Public Debt. The Bureau's
mission is to borrow the money needed to operate the federal government and to account for the resulting debt.
They do this by offering a variety of savings and investment products. The products are fully guaranteed
by the U.S. Government meaning that you can never lose your initial investment. They can be purchased for as low as
$25, for EE/E & I Savings Bonds, or for $100 for the other products. Some products pay a fixed interest rate and
several (I Savings Bonds & TIPS) provide inflation protection. Interest income is exempt from state and local
taxes for all securities and for some products, growth in principal is exempt as well.
Buying Treasury Securities
Investing in US Government Securities is easier than ever thanks to a website called TreasuryDirect provided
by the U.S. Department of the Treasury Bureau of the Public Debt. TreasuryDirect is the first and only financial services
website that lets you buy and redeem securities directly from the U.S. Department of the Treasury in paperless electronic
form. You enjoy the flexibility of managing your savings porfolio online as your needs and financial circumstances change
- all the time knowing your money is backed by the full faith of the U.S. government.
In your TreasuryDirect account, you can purchase and hold Bills, Notes, Bonds, Treasury Inflation-Protected
Securities (TIPS), and savings bonds and it's available to you 24 hours a day, 7 days a week. The system allows you
to purchase, reinvest and sell securities, and perform account maintenance from your computer. There are no no
maintenance fees, no matter how much you have invested.