Treasury bills. T-Bills are direct obligations of the federal government issued at a discount for periods of three months, six months, or one year. Treasury notes, on the other hand, have longer maturities. Treasury bills have been, and continue to be, a popular investment for short-term cash surpluses. They trade on an active market that provides instant liquidity. Treasury bills also provide your business with the option of choosing almost any term of maturity, from one day up to one year, through secondary markets

Treasury notes. You may be able to use treasury notes to invest any cash surpluses that you expect to have for more than one year. Treasury notes are longer-term government obligations than T-Bills. The maturities for treasury notes are longer than one year. The secondary market for treasury notes provides liquidity and the opportunity for you to purchase outstanding notes with shorter maturities to match your investment needs.