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About the State and Local Government Series Securities

State and Local Government Series (SLGS) securities are special purpose securities that Treasury issues to state and local governments to assist with compliance of federal tax laws and IRS regulations governing the investment of cash proceeds generated from a tax-exempt bond issuance.

The software for SLGS is called SLGSafe.

State and Local Government Series Securities

SLGS at a Glance

You can invest in either Time Deposit SLGS or Demand Deposit SLGS.


Time Deposit SLGS

Demand Deposit SLGS

Issued as

Certificate of Indebtedness
(C of I) or Note or Bond

One-day Certificate of Indebtedness (C of I)

Maturity length

C of I – 15 days to 1 year
Note – more than 1 year to 10 years

Bond – more than 10 years to 40 years

One-day but they roll over automatically until you ask us to cash them

Interest paid

C of I pays interest when the Time Deposit SLGS matures

Notes and bonds pay interest every 6 months

Interest is capitalized every day on principal and prior accrued interest and paid at redemption

Interest rate

The maximum allowable rate is one basis point below the current estimated Treasury borrowing rate for a security of comparable maturity

The daily rate table shows the maximum allowable rate. A  SLGS customer may choose any rate they want from 0% to the maximum in the daily rate table

Based on an adjustment of the average yield in the most recent auction of the 13-week Bill

Amount offered

Minimum: $1,000
No maximum
Whole dollar amounts only

Minimum: $1,000
No maximum
Does not have to be in whole dollar amounts


The State and Local Government Series (SLGS) securities program was established in 1972 as the result of federal legislation enacted in 1969 which restricted state and local governments from earning arbitrage profits by investing bond proceeds in higher yielding investments. In 1992, SLGS were centralized within the Special Investments Branch (SIB) of the Bureau of the Public Debt (now the Bureau of the Fiscal Service) in Parkersburg, WV.

SLGS securities are offered for sale to issuers of state and local government tax-exempt debt to assist with compliance of yield restriction or arbitrage rebate provisions of the Internal Revenue Code. Subscribers may invest in time deposit or demand deposit types of securities. All SLGS securities are issued in book-entry form and are non-marketable.

For more information, see our SLGS FAQS or SLGS Quick Reference Guide

The SLGSafe Software Application


Subscribers can purchase SLGS securities by using SLGSafe, our secure Internet application for managing your SLGS portfolio. With SLGSafe, you’ll enjoy immediate subscription confirmation, report access, and redemption capabilities.

Funds for purchasing the security are sent through the Fedwire Funds Transfer system (Fedwire) on the issue date. Scheduled interest and redemption payments are paid through Automated Clearing House (ACH). Fedwire pays some of the proceeds of redemptions requested before maturity.

For more information about the application, see the SLGSafe FAQs