I-Bond and Treasury Bill Calculator (US)

Treasury Securities Guide

Why Treasuries Beat CDs in High-Tax States?

US Treasury securities (T-Bills, T-Notes, T-Bonds, I-Bonds, EE-Bonds) are EXEMPT from state and local income tax. Federal tax still applies. In California (13.3% top rate), New York City (~14.7% combined), New Jersey (10.75%), Hawaii (11%), Oregon (9.9%), this is huge. Example: 4.5% T-Bill in California. After 35% federal: 2.925% after-tax. Equivalent CD at 4.5% in California: after 35% fed + 13.3% state = 2.34% after-tax. The Treasury wins by 0.58% just on state tax exemption — over $580/year per $100,000 invested, purely from the state tax exemption Treasuries enjoy that ordinary bank CDs don't.

What's the key thing to understand about Series I Savings Bonds — Inflation Protection?

I-Bonds offer two-component interest: fixed rate (set at issuance, lasts 30 years) + inflation rate (adjusts every 6 months based on CPI-U). 2024 composite rate variations: late 2022 spike at 9.62% drove massive interest; 2024-2025 typically 3-5% range. Annual purchase limit: $10,000 per person via TreasuryDirect + up to $5,000 paper bonds with tax refund. Married couples + trusts can each buy $10k. Hold requirements: must hold at least 12 months. Withdraw between months 12-60: forfeit the last 3 months of interest, which is the only real penalty for accessing I-Bond money before the full 5-year holding period.

What's the key thing to understand about T-Bills — The Forgotten Cash Alternative?

Treasury bills are short-duration zero-coupon Treasury securities sold at discount, matures at face value. Difference = your yield. Maturities: 4, 8, 13, 17, 26, 52 weeks. Minimum purchase: $100. Buy via TreasuryDirect.gov, Vanguard, Fidelity, Schwab brokerage. Brokerage T-Bills: easier interface, can ladder automatically, ETF wrapper available (SGOV, BIL, USFR). TreasuryDirect: government direct, no fees, slightly higher yield in some cases. Why most Americans don't use them: the government TreasuryDirect website has a reputation for being clunky and unintuitive compared to a modern brokerage or bank app, which puts many people off despite the genuine advantages.

What do I need to know about Setting Up TreasuryDirect Account?

Process: create account at TreasuryDirect.gov (10 minutes), link your bank account (verification 1-2 weeks via signature guarantee in problematic cases). Buy securities directly: I-Bonds, T-Bills, T-Notes, T-Bonds, TIPS. Quirks: account locks require paper signature guarantee to reset (don't lose login). No mobile app. No transfer to brokerage without account closure. Workaround: most investors use brokerage Treasury access (Vanguard, Fidelity, Schwab) for T-Bills/Notes, only TreasuryDirect for