Treasury notes are one of three main securities issued by the U.S. federal government. A person can buy a treasury note for 2, 3, 5, 7, or 10 years. Treasury notes, along with other treasury securities, are regarded as one of the safest investments in the world. Given their high demand and safety, treasury notes only produce low interest rates averaging between .10% to 1.7% in 2021 depending on maturity length. The owner receives interest payments every six months and the face value upon maturity. A person can buy notes by bidding at a government auction, using a third-party like a bank, or buying already issued notes at a resale market.
[Last updated in September of 2021 by the Wex Definitions Team]