Treasury Securities

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Bills, Notes, and Bonds

When you buy one, you are lending money to the government for a certain period of time. They are backed by the government so they are considered the safest investment. They have no credit risk, meaning that it's likely that your interest will be paid fully and on time.

A savings bond is an example of a treasury security

Disclosure

Although Treasuries are considered to have very low free credit risk, they are affected by other types of risk, mainly interest-rate risk and inflation risk. Investors are guaranteed to receive interest and principal payments as promised, but the value of the bond itself may change depending on the direction of interest rates.