Investing in U.S. Savings Bonds and Treasuries — A Beginner’s Guide
Educational content only — not financial advice. Canada-first. Independent of any brokerage.
Savings bonds vs Treasuries
Savings bonds (Series I, legacy EE) are non‑marketable, purchased from the U.S. Treasury and held to maturity. Treasuries (T‑Bills, Notes, Bonds, TIPS) are marketable securities traded in the secondary market.
Interest and taxes (high level)
Savings bonds accrue interest and typically defer federal tax until redemption; they’re exempt from state and local tax. Treasuries pay semiannual interest, taxed federally but exempt from state and local tax. Canadian investors should consider cross‑border tax implications and withholding rules.
Practical use cases
Use high‑quality government debt for safety, liquidity, and as a volatility buffer. Match the maturity to your time horizon.
Alternatives for Canadians
For Canadian investors, consider short‑term government bond ETFs (CAD‑hedged where appropriate) to get similar characteristics with easier access.