2 year fixed rate bonds (2024)

FAQs

What is the current interest rate on 2 year Treasury bonds? ›

2 Year Treasury Rate is at 4.65%, compared to 4.71% the previous market day and 4.65% last year.

What are 2 year fixed rate bonds? 2 year fixed rate bonds (also known as “fixed rate savings” or “fixed term savings”) are cash savings products that will usually give you a higher rate to set your money aside for two years. Within an Active Savings Account, we refer to them as fixed term savings products.

Buying through a bank, broker, or dealer

Individuals, organizations, fiduciaries, and corporate investors may buy Treasury securities through a bank, broker, or dealer. With a bank, broker, or dealer, you may bid for Treasury marketable securities non-competitively or competitively, but not both, for the same auction.

Interest income from Treasury bills, notes and bonds - This interest is subject to federal income tax, but is exempt from all state and local income taxes.

Bonds and Notes

Notes are relatively short or medium-term securities that mature in 2, 3, 5, 7, or 10 years. Both bonds and notes pay interest every six months. The interest rate for a particular security is set at the auction.

The interest earned on our fixed rate bonds are calculated as gross, so the interest rate is paid before taxes are deducted. You will need to declare any interest as part of your annual tax return. If the interest you earn from our fixed rate bonds exceeds your Personal Savings Allowance, then it will be taxable.

A fixed rate bond is best thought of as a steady investment account because you know exactly what you'll be getting back and there are no market related elements that might affect your money for better or worse. Some things that mean a fixed rate bond could be right for you: A fixed interest rate.

If you are looking for a short-term, flexible mortgage, a two-year fixed option will likely work best for you, while those looking to work on steadier, long-term financial goals may benefit more from a five-year fixed mortgage.

If you're saving for a goal less than a year away: If you're saving money for a goal with a short-time horizon, T-bills can make more sense than CDs. They provide a higher APY than savings accounts, and they're more liquid than CDs.

What is the downside to buying Treasury bonds? ›

These are U.S. government bonds that offer a unique combination of safety and steady income. But while they are lauded for their security and reliability, potential drawbacks such as interest rate risk, low returns and inflation risk must be carefully considered.

When you buy T-bills through your bank, it may charge you additional fees and expenses such as sales commissions or transaction charges. These extra costs can add up over time and eat into your returns on your investment.

5% APY: With a 5% CD or high-yield savings account, your $50,000 will accumulate $2,500 in interest in one year. 5.25% APY: A 5.25% CD or high-yield savings account will bring you $2,625 in interest within a year.

Right now, two nationally available banks offer accounts earning at least 6% interest: Digital Federal Credit Union and Mango Financial. You may be able to find smaller, local banks offering 6% interest, but it's unlikely.

The United States 2 Years Government Bond Yield is expected to be 4.875% by the end of September 2024. It would mean an increase of 14 bp, if compared to last quotation (4.735%, last update 26 Jun 2024 14:15 GMT+0).

Basic Info. 1 Year Treasury Rate is at 5.10%, compared to 5.10% the previous market day and 5.27% last year.

6 Month Treasury Rate is at 5.37%, compared to 5.37% the previous market day and 5.45% last year. This is higher than the long term average of 2.85%. The 6 Month Treasury Bill Rate is the yield received for investing in a US government issued treasury security that has a maturity of 6 months.

Basic Info. 10-2 Year Treasury Yield Spread is at -0.46%, compared to -0.45% the previous market day and -0.97% last year. This is lower than the long term average of 0.87%. The 10-2 Treasury Yield Spread is the difference between the 10 year treasury rate and the 2 year treasury rate.