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.
How much will I make on a 3 month treasury bill? ›
Basic Info. 3 Month Treasury Rate is at 5.45%, compared to 5.46% the previous market day and 5.26% last year. This is higher than the long term average of 2.71%. The 3 Month Treasury Rate is the yield received for investing in a US government issued treasury security that has a maturity of 3 months.
Can I buy Treasury bills through TreasuryDirect? ›
TreasuryDirect provides a web-based environment for buying and holding Treasury Bills, Notes, Bonds, TIPS, and FRNs, as well as Savings Bonds. You cannot purchase Cash Management Bills in TreasuryDirect.
How much do you make on a 4 week treasury bill? ›
4 Week Treasury Bill Rate is at 5.27%, compared to 5.26% the previous market day and 4.44% last year. This is higher than the long term average of 1.41%. The 4 Week Treasury Bill Rate is the yield received for investing in a US government issued treasury bill that has a maturity of 4 weeks.
Are T-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.
Can I buy a T-bill at a bank? ›
You can buy (bid for) Treasury marketable securities through: your TreasuryDirect account — non-competitive bids only. a bank, broker, or dealer — competitive and non-competitive bids.
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.
What is the 1 year T bill rate today? ›
Basic Info. 1 Year Treasury Rate is at 5.16%, compared to 5.21% the previous market day and 4.70% last year.
How much will 100k be worth in 30 years? ›
Answer and Explanation: The amount of $100,000 will grow to $432,194.24 after 30 years at a 5% annual return. The amount of $100,000 will grow to $1,006,265.69 after 30 years at an 8% annual return.
What happens when a T-bill matures? ›
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. For cash applications: The principal amount will be credited to your designated Direct Crediting Service bank account.
They are issued at a discount to their face value and pay no interest until maturity, at which point the investor receives the full face value of the bill. For example you can currently buy a 3 month T-bill expiring June 10th this year for $98.85 and on June 10th the U.S Government pays you $100.
What is the safest way to buy Treasury bills? ›
Buy Treasury bills through a broker or financial advisor
Another way to purchase Treasury bills is through a broker or financial advisor. Similar to banks, brokers and advisors can help you buy T-bills, but they may also provide additional services like financial advice or portfolio management.
How much does a $10,000 Treasury bill cost? ›
Once the securities mature, the government hands over the full amount of the bill. Here's an example of how the process works. Let's say you purchase a $10,000 T-bill with a discount rate of 3% that matures after 52 weeks. That means you pay $9,700 for the T-bill upfront.
How often do Treasury bills pay out? ›
Treasury notes are medium-term, ranging from two to 10 years, and are otherwise the same, with semiannual interest payments and the face value when they mature. Treasury bills mature within a year, do not pay interest, and are sold at a discount to the face value that you get at maturity.
Is now a good time to buy a Treasury bill? ›
Since the yield curve first started inverting in November 2022, Treasury bills have outperformed longer-duration bonds by a healthy margin, as shown in the table below. Cash returns have fallen behind those on stocks as the market has staged a recovery, though.
What is the maximum T-bill you can buy? ›
You can hold a bill until it matures or sell it before it matures. In a single auction, a bidder can buy up to $10 million in bills by non-competitive bidding or up to 35% of the initial offering amount by competitive bidding.
What does it cost to buy a treasury bill? ›
Bills at a Glance
| Now issued in | Electronic form only |
|---|
| 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.) |
5 more rows$2.50 + GST each for purchase and maturity. There is an additional fee of $2.00 + GST per counter per quarter.
What is the 12 month T-bill rate? ›
Basic Info
1 Year Treasury Rate is at 5.12%, compared to 5.16% the previous market day and 4.59% last year. This is higher than the long term average of 2.95%.
