admin There are several main differences between a treasury bond and a treasury bill, but the basic difference is the time it takes for them to mature. Treasury bills mature within one year, but government bonds generally take upwards of three years to mature! This might seem like a long time to some, especially if you have spent a lot of time investing into government bills. However, the earning curve on bonds is exponentially higher, and the interest pays every six months.
You can usually buy these types of government bonds in increments of $100. This is a lot different then the treasury bills, which are generally loaned in increments of $1000. As you can see, government bonds take longer to mature, but they are paying interest every six months and make excellent investments, especially in the long term department. Many people use government bonds to diversify their portfolio, since the bonds generally earn less than good stocks but are more secure. It is very rare that a bond does not stay secure, and security is usually not an issue at all with government bonds. So, while there are differences, the two are both money-makers when used wisely in your portfolio.