How to Buy Treasury Bills (T-Bills) Directly Through TreasuryDirect: Yields, Risks, and Step-by-Step Setup

Treasury Bills are among the simplest fixed-income instruments available to U.S. investors: short-term, government-backed, and commission-free when bought directly. Recent T-Bill auction results in April 2026 show yields in the 3.6%–3.7% range for shorter maturities — including a 42-day bill at a 3.676% investment rate — well above the national average savings account rate of approximately 0.38%–0.6% APY (per FDIC and Bankrate data as of April 2026). Because yields shift with each auction cycle, investors should always verify current rates at TreasuryDirect.gov before placing a bid. If you have idle cash sitting in a low-yield account and a time horizon of one year or less, buying T-Bills through TreasuryDirect is worth understanding in detail.

This guide covers exactly how T-Bills work, how they’re priced, who they’re best suited for, and a step-by-step walkthrough of the TreasuryDirect purchase process — with real numbers and clear trade-offs.

What Are T-Bills and Why TreasuryDirect?

Treasury Bills are short-term U.S. government debt securities that mature in 4, 8, 13, 26, or 52 weeks. Unlike bonds or notes, they pay no periodic interest coupon. Instead, they’re sold at a discount to face value. When they mature, you receive the full face value. The difference between what you paid and what you received is your return.

TreasuryDirect (TreasuryDirect.gov) is the U.S. Department of the Treasury’s official platform for buying these securities directly — without going through a broker. There are no commissions, no account minimums beyond the $100 purchase minimum, and no intermediaries. You buy at auction, your account is debited, and at maturity your proceeds are deposited back to your linked bank account.

• Minimum investment: $100
• Increments: $100
• Maximum per auction (non-competitive bid): $10 million
• Fees: None on TreasuryDirect
• Credit risk: Backed by the full faith and credit of the U.S. government

For investors building a cash reserve, parking an emergency fund, or simply seeking a predictable short-term return, TreasuryDirect eliminates the cost friction that brokerages can introduce.

Who Treasury Bills on TreasuryDirect Are Best For

T-Bills bought through TreasuryDirect work well for a specific type of investor. Before opening an account, confirm you match at least a few of these criteria:

• Conservative investors who prioritize capital preservation over growth and want a government-guaranteed return
• Savers building an emergency fund who want yields meaningfully above a typical savings account — recent T-Bill yields have been running roughly 300–330 basis points above the national average savings account rate of approximately 0.38%–0.6% APY
• Buy-and-hold investors comfortable locking funds until maturity — TreasuryDirect has no secondary market; early exit requires a brokerage transfer
• Investors with $100–$10,000 earmarked for 1–52 weeks with no anticipated need for immediate access
• Investors in higher state-tax brackets — T-Bill income is subject to federal income tax but exempt from state and local income taxes, which can improve after-tax yield compared to bank interest in high-tax states like California or New York

TreasuryDirect is not ideal for active traders, investors who may need to exit early, or those who want to build complex ladders across competitive bid auctions. Those investors should consider buying T-Bills through a brokerage instead.

How T-Bill Pricing and Yields Work

T-Bills do not pay a coupon. Your return comes entirely from the discount at which you purchase them. The U.S. Treasury uses the following formula to calculate the purchase price for a discounted bill:

Price = Face Value × (1 − (Discount Rate × Days to Maturity / 360))

Worked Example: 26-Week Bill

Using an official TreasuryDirect example: a $1,000 face value 26-week bill auctioned at a discount rate of 0.145%:

• Price = $1,000 × (1 − (0.00145 × 182 / 360))
• Price = $1,000 × (1 − 0.000733) = $999.27
• Your profit at maturity: $0.73 per $1,000

That example uses a historically low discount rate from official Treasury documentation. At recent April 2026 yields in the 3.6%–3.7% range, the estimated profit per $1,000 on a 26-week bill would be closer to $18–$19 — though your actual purchase price is only confirmed after auction results are published.

Approximate Annualized Yield Formula

To estimate the annualized yield on a T-Bill:

Yield ≈ (Face Value − Purchase Price) ÷ Purchase Price × (365 ÷ Days to Maturity)

Auction results — including the exact price assigned to your non-competitive bid — are published on TreasuryDirect after 5 p.m. ET on auction day. Non-competitive bidders receive the price determined by competitive bidding, so your actual yield is confirmed post-auction, not at submission.

Recent Yield Snapshot (April 2026)

Yields are estimates based on available auction data in late April 2026, including a 42-day bill auction at a 3.676% investment rate. Actual results vary by maturity and auction date. Always verify current rates at TreasuryDirect.gov before placing a bid.

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Step-by-Step: How to Buy T-Bills on TreasuryDirect

The setup process takes 15–20 minutes. Email verification can delay same-day activation by several hours, so open your account well before your target auction deadline.

Step 1: Open a TreasuryDirect Account

Go to TreasuryDirect.gov and click Open a New Account in the login box on the right side of the homepage. On the next screen, select Individual as your account type (the default). Click the small Submit button at the bottom left — do not use your browser’s back button at any point during setup, as this can break the application flow.

Step 2: Enter Your Personal Information

Provide your full legal name, U.S. address, Social Security number (or taxpayer identification number), phone number, and email address.

Step 3: Link Your Bank Account

Enter your bank’s routing number, your account number, the name(s) on the account, and whether it is a checking or savings account. Double-check these numbers against a paper check or your bank’s online portal — an error here will cause your bid to fail on auction day.

Step 4: Create Login Credentials

Set a username and password, then choose three security reminder questions. TreasuryDirect will assign you an account number at this stage — record it somewhere secure.

Step 5: Verify via Email Passcode

The U.S. Treasury will email you a one-time passcode. Enter it when prompted to activate your account. Verification typically processes within a few hours but can take longer.

Step 6: Click the BuyDirect Tab

Once logged in, click BuyDirect at the top of the page. From the product list, select Bills.

Step 7: Choose Your Maturity

Select from 4, 8, 13, 26, or 52 weeks. Review the listed auction date and issue date carefully to confirm they align with your cash flow timeline.

Step 8: Enter Your Purchase Amount

Enter any amount from $100 to $10,000,000 in $100 increments. Select your linked bank account as the funding source from the drop-down menu.

Step 9: Configure Reinvestment (Optional)

You can schedule automatic reinvestment at maturity. The number of reinvestments allowed depends on the bill’s term and is capped within a 2-year window:

• 4-week bills: up to 25 reinvestments
• 26-week bills: up to 3 reinvestments
• 52-week bills: 1 reinvestment

Reinvestment is useful for hands-off cash management, but keep in mind that future yields may be lower if the Fed cuts rates between now and your rollover dates.

Step 10: Review and Submit

Review all details carefully before confirming. Non-competitive bids must be received before 11 a.m. ET on auction day. Auction schedules are published in advance on TreasuryDirect under “Upcoming Auctions.”

Step 11: Confirm and Track

You’ll receive an on-screen confirmation immediately after submitting, followed by an email confirmation from TreasuryDirect. Auction results — including your exact purchase price — are posted after 5 p.m. ET on auction day. Funds are typically debited from your bank account on the next business day, which is the security’s issue date.

Current T-Bill Yields and Market Context (April 2026)

Recent T-Bill auction results in April 2026 show yields in the 3.6%–3.7% range for shorter maturities. Because yields are set at each individual auction, a single real-time snapshot does not capture the full picture across all maturities. Check TreasuryDirect.gov for the latest auction results before committing capital.

The yield curve for T-Bills is nearly flat across maturities, with longer terms offering only a modest premium — a pattern consistent with market expectations of limited Federal Reserve rate cuts in late 2026.

For context, the spread between a 52-week T-Bill (yielding approximately 3.7% in recent auctions) and the national average savings account rate (approximately 0.38%–0.6% APY as of April 2026, per FDIC and Bankrate data) is roughly 310–330 basis points. On a $10,000 position held for one year, that spread translates to approximately $310–$330 in additional pre-tax income compared to the average bank savings account — a meaningful difference for cash that would otherwise sit idle.

The Treasury has increased short-term bill issuance in recent years to manage debt rollovers, meaning auctions occur on a regular, predictable schedule — a practical advantage for investors who want consistent entry points.

Key Risks and Limitations of TreasuryDirect T-Bills

T-Bills are among the safest instruments available, but that doesn’t mean they’re without trade-offs. Here are the specific limitations to understand before committing capital:

No Liquidity on TreasuryDirect

TreasuryDirect does not have a secondary market. If you need cash before your bill matures, your only option is to transfer the security to a brokerage account — a process that takes time and may involve small fees. Plan to hold until maturity, or use a brokerage platform instead.

Reinvestment Risk

When your T-Bill matures, proceeds roll into a new bill at whatever yield the market offers at that time. If the Federal Reserve has cut rates, your next bill may yield materially less than your current one. This is especially relevant for investors using automatic reinvestment across 1–2 year periods.

Interest Rate Risk (Relative)

Because you can’t sell on TreasuryDirect, if rates rise sharply after you lock in your yield, newer buyers will outperform you for the remaining duration of your bill. This risk is bounded by the short maturity window (4–52 weeks), which limits how long you’re exposed to a below-market rate.

Inflation Risk

At recent yields in the 3.6%–3.7% range, T-Bills outpace most savings accounts in nominal terms. But if the Consumer Price Index accelerates above those yields, your real (inflation-adjusted) return turns negative. T-Bills are not an inflation hedge; Treasury Inflation-Protected Securities (TIPS) serve that purpose.

Tax Treatment

T-Bill interest income is taxable at the federal level as ordinary income in the year the bill matures. It is exempt from state and local income taxes — an advantage over bank interest in high-tax states like California or New York. It does not qualify for preferential long-term capital gains or qualified dividend rates, so high-income investors should model after-tax returns carefully before comparing T-Bills to other fixed-income options.

TreasuryDirect vs. Buying T-Bills Through a Broker

For new-issue T-Bill purchases placed online, major brokerages like Fidelity, Schwab, and Vanguard typically charge $0 commission — closing most of the cost gap with TreasuryDirect for standard online transactions. The primary advantages of TreasuryDirect remain its $100 minimum investment and its direct government-account relationship, which is useful for smaller investors or those who prefer to keep T-Bill holdings completely separate from their brokerage accounts. Brokerages, in turn, offer secondary market access and competitive bid flexibility that TreasuryDirect does not provide.

What to Do Next: Your Action Plan

If T-Bills through TreasuryDirect fit your profile, here’s a practical sequence to get started:

1. Decide on your allocation. Identify how much idle cash you can commit for 4–52 weeks without needing access. Only deploy funds you won’t need before the maturity date you select.
2. Open your TreasuryDirect account now. Go to TreasuryDirect.gov. Setup takes 15–20 minutes, but email verification can delay full activation by several hours. Don’t wait until the morning of an auction.
3. Link your bank account carefully. Confirm routing and account numbers against a paper check or your bank’s online portal. A single-digit error causes a failed bid and pushes your purchase back by one full auction cycle.
4. Consider a maturity ladder. Rather than concentrating all your cash in one term, split it across 4-week, 13-week, and 26-week bills on different auction dates. This staggers your maturities, provides regular cash access, and averages your yield across changing rate environments.
5. Set a calendar reminder for auction deadlines. Non-competitive bids close at 11 a.m. ET on auction day. Upcoming auction dates are listed at TreasuryDirect.gov under “Upcoming Auctions.”
6. Monitor yields before each purchase. Check current auction rates at TreasuryDirect.gov before every new bid. Yields shift with each auction and should inform both your maturity selection and the size of your allocation.
7. Plan your reinvestment strategy before you buy. Decide upfront whether you want automatic rollovers at maturity or prefer proceeds to settle back to your bank account. Automatic reinvestment is convenient but commits you to future yields — potentially lower ones — without requiring you to actively review the decision each cycle.

This article is for informational purposes only and does not constitute personalized financial, tax, or investment advice. Consult a qualified financial advisor to evaluate whether T-Bills are appropriate for your individual tax situation, risk tolerance, and investment timeline.