Treasury bills and I bonds, in plain English

The US Treasury sells savings products directly to the public through TreasuryDirect.gov. They're backed by the US government and come with their own rules.

Treasury bills

• Short-term: from a few weeks to a year
• Bought at a discount; you receive the full amount at maturity
• Interest is exempt from state and local income tax
• Can also be bought through many brokerage accounts

Series I savings bonds

• Rate combines a fixed rate and an inflation rate, reset every six months
• Must be held at least one year
• Cashing in before five years costs the last three months of interest
• There's a yearly purchase limit per person; check TreasuryDirect.gov

General information, not investment advice. Check TreasuryDirect.gov for current rates and rules. Nickel Savings isn't paid by any bank or financial company.