Buy Treasury Bills in 2026: Fidelity, Schwab & TreasuryDirect

How to Buy Treasury Bills in Fidelity, Schwab, or TreasuryDirect: A Step-by-Step Guide for Beginners in 2026

Treasury bills can be a practical place to hold money that you will not need immediately. They are short-term U.S. government securities, typically mature within one year, and can be purchased through TreasuryDirect or brokerage firms such as Fidelity and Charles Schwab.

The buying process is straightforward once you understand auction dates, maturity choices, purchase minimums, and reinvestment settings. The main decision is where to buy: TreasuryDirect offers direct access and a low minimum, while a brokerage can make portfolio management and early sales easier.

This guide explains how to buy Treasury bills in Fidelity, Schwab, or TreasuryDirect in 2026. Platform menus and policies can change, so verify the current order screen, fees, minimums, and auction schedule before submitting a purchase.

What Treasury Bills Are and Why Investors Buy Them

A Treasury bill, commonly called a T-bill, is a short-term debt obligation issued by the U.S. Department of the Treasury. Regularly offered maturities generally range from 4 to 52 weeks, although the exact issues available at a given time depend on the Treasury’s auction schedule.

Unlike Treasury notes and bonds, conventional T-bills do not make periodic interest payments. Instead, they are generally issued at a discount to their face value. The investor pays less than the amount that will be returned at maturity.

How discount pricing works

Suppose you purchase a T-bill with a face value of $1,000 for $985. If you hold it until maturity, the Treasury pays you $1,000. The $15 difference represents your interest income.

The actual purchase price is not known when a noncompetitive auction order is first entered. It is determined by the auction results. Auction yields can change from one offering to the next, so the yield from last week’s bill is not a promise of what the next auction will pay.

Why investors use T-bills

Short maturities: Investors can choose a term that matches an upcoming expense or cash-management goal.
Government backing: Principal and interest are backed by the full faith and credit of the U.S. government when the security is held to maturity.
Tax treatment: T-bill interest is generally subject to federal income tax but exempt from state and local income taxes.
Predictable maturity value: The face value is paid at maturity, assuming the obligation is honored.
Marketability: T-bills held at a brokerage can generally be sold before maturity, although their market value may be higher or lower than the purchase price.

T-bills compared with common cash alternatives

Option	How returns are earned	Liquidity	Important distinction
Treasury bills	Purchased at a discount and redeemed at face value	Available at maturity or through a secondary-market sale	Interest is generally exempt from state and local income taxes
Savings account	Variable interest credited by a bank or credit union	Usually high, subject to account rules	Eligible deposits may receive FDIC or NCUA insurance within applicable limits
Certificate of deposit	Fixed or variable bank interest	May involve an early-withdrawal penalty	Terms and penalties vary substantially by institution
Money market fund	Income from a diversified portfolio of short-term securities	Generally offers convenient transactions	It is a mutual fund, not an FDIC-insured bank deposit
Treasury ETF	Fund distributions and changes in share price	Trades during market hours	Has a fluctuating share price, ongoing expenses, and no fixed maturity for the investor’s shares

Compare after-tax yield, liquidity, fees, insurance or government backing, and the date you expect to need the money. A higher quoted yield is not automatically the better choice if the product does not match your timeline.

Who Should Buy T-Bills—and Which Platform Fits Best?

T-bills may suit investors seeking a defined short-term maturity and who can leave the money invested until that date. They may be less appropriate for emergency money that must remain immediately accessible or for money intended to pursue long-term growth.

TreasuryDirect may be best for a hands-off saver

TreasuryDirect allows eligible individuals to buy marketable Treasury securities directly from the federal government. Bills can generally be purchased with a $100 minimum and in $100 increments. No brokerage account is required.

The tradeoff is limited flexibility. TreasuryDirect is primarily designed for purchasing and holding securities. Selling a bill early generally requires transferring it to a bank, broker, or dealer, and marketable securities normally must be held in TreasuryDirect for at least 45 calendar days before they can be transferred.

Fidelity or Schwab may be best for an existing brokerage customer

A brokerage can keep T-bills alongside stocks, funds, and other bonds on one statement. It also provides access to the secondary market, making it easier to sell a bill before maturity when necessary.

Brokerage orders commonly use larger face-value increments than TreasuryDirect. A $1,000 face-value minimum is common for individual Treasury securities, but investors should rely on the minimum and increment displayed for the specific offering.

Quick platform match

Choose TreasuryDirect if you want to start with $100, intend to hold to maturity, and do not need a full brokerage platform.
Choose Fidelity if you already invest there and want consolidated records, brokerage liquidity, or eligible Auto Roll functionality.
Choose Schwab if it is your primary brokerage and you want auction purchases, integrated cash management, and potential secondary-market access.

Minimums, available maturities, reinvestment eligibility, deadlines, and order-entry procedures can vary by platform and issue.

How to Buy Treasury Bills in Fidelity

Sign in and open the fixed-income section.

From Fidelity’s website, navigate to the area labeled “Fixed Income, Bonds & CDs” or its current equivalent.
Open the new-issues page.

Select “New Issues,” expand the Treasury category, and look for Treasury bills. Do not confuse a new-issue auction with an existing Treasury trading on the secondary market.
Choose an available bill.

Compare the maturity, auction date, settlement date, and estimated yield information. The estimate is not the final auction yield.
Review the purchase terms.

Confirm the displayed minimum, denomination or increment, order deadline, and price method. New-issue retail orders are generally submitted as noncompetitive bids.
Enter the quantity and funding account.

Brokerage Treasury orders may be expressed as a quantity of $1,000 face-value units rather than a simple dollar deposit. For example, a quantity of five may represent $5,000 of face value. Read the confirmation page carefully.
Preview and submit the order.

Verify that enough settled cash will be available on the settlement date. Save the order confirmation for your records.

Using Fidelity Auto Roll

Fidelity’s Auto Roll service may allow an eligible Treasury security’s maturity proceeds to be invested in a new security with a similar term. Availability depends on the security, account, and current program rules.

Auto Roll is convenient for maintaining ongoing exposure, but it does not lock in today’s yield. Each replacement bill receives the price and yield established for its own auction. Review any pending replacement order if your cash needs change.

How to Buy Treasury Bills in Schwab

Open Schwab’s bond-trading area.

After signing in, select “Trade,” open “Bonds,” and locate Treasury auctions or new Treasury issues.
Review the available bills.

Depending on the current auction calendar, you may see bills with terms such as 4, 8, 13, 17, 26, or 52 weeks. Other offerings may also appear when issued.
Check the auction information.

Review the auction date, settlement date, maturity date, order cutoff, and any estimated yield. The completed auction determines the final price.
Confirm the minimum and increment.

Schwab brokerage purchases commonly require larger denominations than TreasuryDirect’s $100 minimum. Use the order screen—not a third-party example—to determine how quantity translates into face value.
Select the account and funding source.

Choose the account that will hold the bill and make sure it contains sufficient available funds for settlement.
Choose a reinvestment preference.

If reinvestment is offered, decide whether the maturity proceeds should purchase another bill. Confirm the number of reinvestments or other limitations shown.
Review and submit.

Check the face value, estimated cost, dates, and reinvestment election before placing the order.

Holding to maturity versus selling through Schwab

Holding the bill to maturity results in payment of its face value. Selling it earlier is a separate secondary-market transaction. Its market price will reflect current interest rates, remaining time to maturity, and market demand.

If rates rise after your purchase, an existing bill may be worth less in the secondary market. Broker pricing, bid-ask spreads, and transaction policies can also affect the proceeds. Check the trade preview before completing an early sale.

How to Buy Treasury Bills in TreasuryDirect

Create a TreasuryDirect account.

You generally need a Social Security number or other taxpayer identification number, a U.S. address of record, an email address, and a checking or savings account capable of receiving ACH debits and credits. TreasuryDirect may request additional identity information.
Sign in and select BuyDirect.

Choose “Bills” from the list of marketable securities.
Choose a term and auction date.

Select an available bill based on when you want the money returned. Pay attention to both the auction date and issue date.
Enter the purchase amount.

TreasuryDirect marketable securities generally have a $100 minimum and are sold in $100 increments. The amount entered represents face value; the bank debit for a discounted bill will normally be slightly lower.
Select the linked bank account.

Choose the payment source and verify that sufficient money will be available on the issue or settlement date.
Use a noncompetitive bid.

Individual TreasuryDirect purchases use noncompetitive bidding. You agree to accept the rate, yield, or discount margin determined by the auction instead of specifying the return you demand.
Choose whether to reinvest.

If available, schedule reinvestments so maturity proceeds purchase another bill of the same term. Each new bill receives its own auction yield.
Confirm the order.

Review the amount, registration, bank account, auction, and reinvestment instructions before submitting.

TreasuryDirect works well for holding bills to maturity. It is less convenient for an early sale because the security must generally be transferred to a financial institution first, subject to TreasuryDirect’s rules and holding period.

What Happens After You Place the Order?

1. The order waits for the auction

Your platform accepts the order before its cutoff, which may be earlier than the Treasury’s official deadline. The Treasury then evaluates competitive bids and establishes the auction’s accepted rate and price.

2. Noncompetitive investors receive the auction result

A noncompetitive bidder agrees to accept the result rather than naming a desired yield. Successful noncompetitive bidders receive the same auction-determined price as successful competitive bidders for that security.

3. The purchase settles

On the issue or settlement date, the purchase cost is deducted from the designated account and the T-bill appears in TreasuryDirect or the brokerage account. The cost is based on the auction price, not merely the face value entered with the order.

4. The bill reaches maturity

Consider a simplified example:

Face value: $1,000
Purchase price: $985
Amount paid at settlement: $985
Amount received at maturity: $1,000
Interest income before taxes: $15

This example is for illustration and does not represent a current auction quote. Published T-bill yields are annualized, so the $15 gain by itself should not be interpreted as a 1.5% annual yield without adjusting for the purchase price and days to maturity.

Without reinvestment, maturity proceeds move to the linked bank account, brokerage cash balance, or other destination specified by the platform. With reinvestment, proceeds are applied to a replacement security and any remaining amount is handled under the platform’s rules.

Auction confirmations, transaction history, maturity details, and tax documents can generally be found in the account’s records or statements.

T-Bill Risks, Taxes, and What to Do Next

Risks beginners should understand

Reinvestment risk: A replacement bill may pay a lower yield when the original bill matures.
Inflation risk: Inflation can reduce the purchasing power of the principal and interest received.
Interest-rate risk: A bill’s market price may decline if interest rates rise.
Early-sale risk: Selling before maturity can produce a loss after market-price changes, spreads, or transaction costs.
Liquidity constraints: TreasuryDirect transfers take additional steps and are subject to a minimum holding period.
Timing risk: Money committed to a bill may not be conveniently available for an unexpected expense.

The U.S. government’s backing addresses payment of Treasury obligations; it does not guarantee that an investor will beat inflation, receive the same yield on reinvestment, or avoid a loss when selling before maturity.

How T-bill taxes generally work

The difference between a bill’s purchase price and its maturity value is generally taxable as federal interest income. Treasury interest is generally exempt from state and local income taxes. A brokerage or TreasuryDirect may provide a Form 1099-INT or other applicable tax record.

Secondary-market purchases and sales can create additional tax considerations, including market discount or capital gains and losses. Consult a qualified tax professional for advice about your circumstances.

Fidelity vs. Schwab vs. TreasuryDirect recap

Feature	TreasuryDirect	Fidelity	Schwab
Typical new-issue minimum	$100 in $100 increments	Often $1,000 face value; verify the issue	Often $1,000 face value; verify the issue
Account access	Separate government account	Integrated brokerage account	Integrated brokerage account
Portfolio convenience	Focused on Treasury securities	Consolidated with other investments	Consolidated with other investments
Automatic reinvestment	Available for eligible purchases	Auto Roll available for eligible securities	Reinvestment may be available on eligible orders
Early-sale flexibility	Requires transfer to a broker or dealer and is subject to restrictions	Secondary-market sales available	Secondary-market sales available
Best suited to	Smaller purchases and holding to maturity	Existing Fidelity customers seeking integrated management	Existing Schwab customers seeking integrated management

What to Do Next

Check the Treasury’s current auction schedule and compare the available maturity dates.
Decide when you will need the money, leaving room for unexpected expenses.
Compare the latest T-bill yield with savings accounts, CDs, money market funds, and Treasury ETFs on an after-tax basis.
Choose TreasuryDirect for smaller direct purchases or a brokerage for consolidated management and easier secondary-market access.
Verify the platform’s minimum, order cutoff, settlement date, and reinvestment rules.
Make sure sufficient cash will be available when the purchase settles.
Review the full confirmation screen before submitting the order.

For many beginners, the simplest first purchase is a modest T-bill with a maturity matched to a known savings deadline. The most important details are not the platform’s button labels but the face value, auction date, settlement date, maturity date, funding source, and what will happen to the proceeds at maturity.

This article is for general educational purposes and is not personalized investment, tax, or legal advice.