In a move that should help more Americans invest and save money, the U.S. Treasury Department has announced it will reduce the minimum purchase price for all Treasury bills, notes, bonds and Treasury Inflation-Protected Securities (TIPS) to $100, beginning on April 7, 2008. The price of these securities had been set at a minimum of $1000 since August 1998.

In addition to purchasing them for $100, all T-bills, notes, bonds and TIPS may be sold and transferred in multiples of $100. The new minimum and multiples will also apply to outstanding Treasury marketable securities effective April 7, 2008.

"U.S. Treasury securities, the world's safest, most liquid investments, should be accessible to the broadest universe of investors- large and small. The new, lower minimum Treasury amount will put marketable securities within reach of more savers and investors in the United States and around the world," said Anthony Ryan, Assistant Secretary of the Treasury for Financial Markets in a press release. "In addition, being able to buy securities in $100 increments adds a new degree of flexibility for all market participants." Treasury bills, savings bonds and other Treasury marketable securities can be purchased online directly from the Treasury.

Also See:
Buy T-Bills, Bonds Online
What are Treasury Bills, Notes and Bonds? (US Economy)