We sell Treasury Bills (Bills) for terms ranging from four weeks to 52 weeks.
Bills are sold at a discount or at par (face value). When the bill matures, you are paid its face value.
You can hold a bill until it matures or sell it before it matures.
Note about Cash Management Bills: We also sell Cash Management Bills (CMBs) at various times and for variable terms. Cash Management Bills are only available through a bank, broker, or dealer. We do not sell them in TreasuryDirect.
Bills at a Glance
| Now issued in | Electronic form only |
| Matures in | 4, 8, 13, 17, 26, and 52 weeks
Also, see the note above about Cash Management Bills. |
| Interest rate | Fixed at auction. For bills, "interest" is the difference between what you paid and the face value you get when the bill matures.
See Results of recent Bill auctions.
Also see Understanding pricing and interest rates. |
| Interest paid | When the bill matures |
| Minimum purchase | $100 |
| In increments of | $100 |
| Maximum purchase | $10 million (non-competitive bid)
35% of offering amount (competitive bid)
(See Buying a Treasury marketable security for information on types of bids.) |
| Auction frequency | Every four weeks for 52-week bills
Weekly for 4, 8, 13, 17, 26-week bills
No regular schedule for Cash Management Bills
See the Auction calendar for specific dates. |
| Taxes | Federal tax due on interest earned
No state or local taxes |
| Eligible for STRIPS? | No |
FAQs
To calculate the price, take 180 days and multiply by 1.5 to get 270. Then, divide by 360 to get 0.75, and subtract 100 minus 0.75. The answer is 99.25. Because you're buying a $1,000 Treasury bill instead of one for $100, multiply 99.25 by 10 to get the final price of $992.50.
What is a 1 year T bill paying today? ›
1 Year Treasury Rate is at 5.18%, compared to 5.19% the previous market day and 5.11% last year. This is higher than the long term average of 2.95%. The 1 Year Treasury Rate is the yield received for investing in a US government issued treasury security that has a maturity of 1 year.
Can I buy Treasury bills through TreasuryDirect? ›
TreasuryDirect is the official United States government application in which you can buy and hold savings bonds and Treasury marketable securities (Notes, Bonds, Bills, TIPS, and FRNs). To buy, you must have a TreasuryDirect account.
How much can you make on a 3 month treasury bill? ›
Basic Info. 3 Month Treasury Bill Rate is at 5.26%, compared to 5.26% the previous market day and 5.26% last year. This is higher than the long term average of 4.19%.
Are treasury bills better than CDs? ›
Choosing between a CD and Treasuries depends on how long of a term you want. For terms of one to six months, as well as 10 years, rates are close enough that Treasuries are the better pick. For terms of one to five years, CDs are currently paying more, and it's a large enough difference to give them the edge.
How much is a 6 month T-bill? ›
Basic Info
6 Month Treasury Bill Rate is at 5.18%, compared to 5.18% the previous market day and 5.18% last year. This is higher than the long term average of 4.49%. The 6 Month Treasury Bill Rate is the yield received for investing in a US government issued treasury bill that has a maturity of 6 months.
Do you pay taxes on T-bills? ›
Key Takeaways
Interest from Treasury bills (T-bills) is subject to federal income taxes but not state or local taxes. The interest income received in a year is recorded on Form 1099-INT. Investors can opt to have up to 50% of their Treasury bills' interest earnings automatically withheld.
What is the yield on a 52 week treasury bill? ›
| Bonds | Yield | Day |
|---|
| US 52W | 5.17 | -0.024% |
| US 2Y | 4.88 | -0.052% |
| US 3Y | 4.69 | -0.055% |
| US 5Y | 4.51 | -0.061% |
11 more rowsAre Treasury bills a good investment? Ultimately, whether Treasury bills are a good fit for your portfolio depends on your risk tolerance, time horizon and financial goals. T-bills are known to be low-risk short-term investments when held to maturity since the U.S. government guarantees them.
What happens when a T-bill matures? ›
Maturity of T-bills
Upon maturity of the T-bills, when will I receive the principal amount? On maturity, the principal amount will be credited to your respective account by the end of the day, typically after 6pm.
Key Takeaways:
| ETF | Expense Ratio | Yield to maturity |
|---|
| iShares U.S. Treasury Bond ETF (ticker: GOVT) | 0.05% | 4.3% |
| U.S. Treasury 10 Year Note ETF (UTEN) | 0.15% | 4.1%* |
| iShares iBonds Dec 2033 Term Treasury ETF (IBTO) | 0.07% | 4.1% |
| Global X 1-3 Month T-Bill ETF (CLIP) | 0.07% | 5.5% |
3 more rowsT-bills are issued with 3-, 6- or 12-month maturities. When you purchase a T-bill, you pay less than the face (or par) value. When the T-bill matures, you receive par value of the T-bill. T-bills aren't like coupon bonds, which pay interest in increments.
How to get 5% return? ›
Another place you could park money and earn 5% or more, without risking your principal within applicable insurance limits, is a high-yield savings account. High-yield savings accounts can also let you move money in and out of your account more freely than CDs do.
How to buy treasury bills for beginners? ›
You can only buy T-bills in electronic form, either from a brokerage firm or directly from the government at TreasuryDirect.gov. (You can also buy Series I savings bonds through TreasuryDirect.gov). The most common maturity dates are four weeks, eight weeks, 13 weeks, 26 weeks and 52 weeks.
Do banks sell T-bills? ›
You can buy a bill in TreasuryDirect or through a bank or broker. The table below shows the types of bills available for purchase by both means. (We no longer sell bills in Legacy Treasury Direct, which we are phasing out.)
Can I buy a T-bill at a bank? ›
T-bills sell in increments of $100 up to a maximum of $10 million, and you can buy them directly from the government through its TreasuryDirect website, or through a brokerage, bank or self-directed retirement account, like a Roth IRA.
What is the maximum T-bill you can buy? ›
What does it cost to buy a treasury bill? ›
Bills are sold in increments of $100. The minimum purchase is $100. All bills except 52-week bills and cash management bills are auctioned every week. The 52-week bill is auctioned every four weeks.
Is there a penalty for selling T-bills? ›
You can sell a T-Bill before its maturity date without penalty, although you will be charged a commission. (With CDs, you pay a sizeable penalty for early withdrawals.)
