US Treasury securities are the safest investment in the world — backed by the full faith and credit of the US government. In 2026, with yields still elevated from the Fed rate cycle, they offer compelling returns for conservative investors.
Treasury product overview
| Product | Maturity | 2026 yield range | Key feature |
|---|---|---|---|
| T-Bills | 4, 8, 13, 17, 26, 52 weeks | 4.5–5.1% | Bought at discount, no coupon |
| T-Notes | 2, 3, 5, 7, 10 years | 4.2–4.7% | Semi-annual coupon payments |
| T-Bonds | 20, 30 years | 4.5–4.8% | Longest duration, most rate risk |
| TIPS | 5, 10, 30 years | ~1.8% real | Principal adjusts with inflation |
| I-Bonds | Up to 30 years | 3.8–4.4% composite | Inflation + fixed rate, $10k limit |
The state tax advantage
Treasury interest is exempt from state and local income tax. In California (13.3% top rate), an investor in the top bracket: a 4.8% T-bill is equivalent to a 5.44% taxable yield. This advantage is significant in high-tax states.
How to buy Treasuries
- TreasuryDirect.gov: Buy directly from the government, no fees, minimum $100. Hold to maturity — limited secondary market through TreasuryDirect.
- Brokerage (Fidelity, Schwab, Vanguard): Buy on secondary market or at auction. Full secondary market liquidity. Most convenient option.
- ETFs (BIL for T-bills, IEF for 7–10yr notes, TLT for 20+yr): Instant liquidity, diversified, but ongoing expense ratio eats some yield.
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About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
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