What is the cash register?

The cash register, otherwise known as T-Note, is a type of security issued by the United States government for the only purpose of financing state debt. It is a very popular form of investment because it is considered "without risk". This is because debt and interest can be repaid through other factors such as changing economics, tax increases, printing more money and reducing government expenditure. Simply put, the US exposes such a low risk of shocks that the purchase of securities from the US Treasury is generally considered to be a sound strategy. Interest is obtained at a fixed rate and in six months steps until maturity is achieved. The interest rate is also referred to as a yield or coupon rate. T-Mnots are taxed federally, but not locally or from the state. For example, if an investor buys a two -year cash register note $ 5,000 (USD) with a yield of 4.5 percent, the investor will receive a $ 225 payment payment every six months. When the loan matures, the investor can apply it for $ 5,000.

sold in additions of $ 100, the actual value of T-Note is not directly proportional to its nominal value, but rather the market and its yield. The minimum investment is $ 1,000 and can increase up to $ 1 million. With incompetitive offers, the limit of $ 5 million or up to 35% of the initial offer in the auction is.

The proceeds of the cash register are determined during the purchase of the auction. In an incompetitive offer, one receives a yield given in the auction. The competitive offer allows the buyer to specify a return that is willing to accept, but the offer is not guaranteed to be accepted.

One can buy a treasury remark from the government, bank or broker. The consumer can hold or sell it before maturation. When the cash register matures, the consumer is paid for the nominal value of T-Note.

Before buying the cash register, you should find out whether you will do so competitively or uncompetitively. Competitive offers can only be purchased through a bank and broker, not a governmentthat only accepts uncommon offers. But banks and brokers accept incompetitive offers.

You want to buy if you need to buy directly from the government, we have to open an account on TreasuryDirect (individuals only) or Legacy Treasury Direct. The offer is made online.