What Are Term Rates for Investments?


Quick Answer

Term rates vary for different investments and periods, but basic term rates for U.S. Government-issued securities are available from the U.S. Department of Treasury website. These rates vary for periods ranging from one month to 30 years.

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What Are Term Rates for Investments?
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Full Answer

The U.S. Department of Treasury website contains a chart for a relevant period and rate that are reflective for that particular day. Visitors can modify the chart by selecting the type of interest rate data as well as the relevant time period. Some of the rates available include daily treasury yield curve rates, daily treasury bill rates, daily treasury long-term rates and historic treasury rates. All of these U.S. Treasury securities trade actively in the secondary market, notes Zack's Finance.

U.S. Treasury bills, notes and bonds are backed by the full faith and credit of the U.S. Government, reports Zack's Finance. As a result, these rates serve as a benchmark for financial securities. For instance, the rate on these treasury securities is known as the risk-free rate, and any security that has a higher rate offers a market risk premium, notes the Houston Chronicle. Treasury securities are grouped into short-term, intermediate-term and long-term securities. Investors must consider the relevant interest and taxes associated with each type of security, states Zack's Finance.

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