Investment Services

Tax-Exempt Securities

Tax-exempt authorities such as states, cities and counties issue these securities. Also issued are revenue issues of hospitals, electric and water companies, etc. They are available with maturities ranging from one to thirty years in denominations of $5,000 and up. The interest rate is generally lower than taxable securities, but the after-tax net yield can be greater. Tax-exempt interest on securities are free from federal tax. They are also free from Tennessee tax if the issue is located within this state.¹

U.S. Government Securities

Treasury Bills are available at weekly auctions or on the secondary market. Interest rates are established at time of purchase. Treasury Bills are readily marketable, are purchased at a discount and you receive the principal at maturity.

U.S. Treasury Notes and Bonds feature initial maturities of two to thirty years. Treasury notes and bonds are guaranteed for face amount by the U.S. Government, and can be purchased in $5,000 denominations.

U.S. Treasury bills, notes and bonds are fully taxed for federal income tax purposes, but are exempt from state and local income taxes.¹

Federal Agency Securities

Federal Government obligations are thought to be highly safe and liquid investments. They typically offer slightly higher returns than U.S. Treasury Securities. Denominations range from $5,000 to $50,000, and maturities range from thirty days to thirty years. These securities are traded daily.