Fidelity vs. Schwab vs. TreasuryDirect for T-Bills in 2026

Fidelity vs. Schwab vs. TreasuryDirect for Buying T-Bills in 2026: Fees, Yield, Liquidity, and Ease of Use

Choosing where to buy Treasury bills can affect convenience, liquidity, account options, and minimum order size—but it usually does not determine the yield on a newly issued T-bill. Investors participating in the same Treasury auction generally receive the same auction-determined rate whether they place the order through Fidelity, Charles Schwab, or TreasuryDirect.

The more important questions are whether you need an IRA, want automatic reinvestment, may sell before maturity, or prefer to invest in increments smaller than $1,000. Here is how Fidelity, Schwab, and TreasuryDirect compare in 2026.

Quick Verdict: Which T-Bill Platform Is Best?

• Fidelity is the strongest all-around choice for most investors who want access to Treasury auctions, automatic rollovers, eligible IRAs, customer support, and a secondary market for selling before maturity.
• Schwab is a strong brokerage alternative, particularly for investors who already keep their taxable and retirement accounts there. Confirm the current availability and limitations of Schwab’s automatic Treasury reinvestment service before relying on it.
• TreasuryDirect is best for direct purchases in $100 increments and investors who expect to hold every bill to maturity. Its limited selling process makes it less suitable when liquidity is important.

Yield is primarily determined by the Treasury auction or the price available in the secondary market—not by the name of the platform. Rates, minimums, reinvestment policies, and service fees can change, so review the current order screen and fee schedule before submitting a purchase.

Fidelity vs. Schwab vs. TreasuryDirect: At-a-Glance Comparison

Feature	Fidelity	Charles Schwab	TreasuryDirect
General account minimum	Typically $0	Typically $0	No general account minimum
Common T-bill order minimum	Usually $1,000 per security	Usually $1,000 per security	$100, with $100 increments
New-issue Treasury auctions	Yes	Yes	Yes
Secondary-market trading	Yes	Yes	No brokerage-style marketplace
Sell before maturity	Normally available through the bond market	Normally available through the bond market	Requires transferring the security to a broker before selling
Automatic reinvestment	Available for eligible securities and accounts	May be available with term or account restrictions; verify current rules	Reinvestment instructions available for eligible securities
Traditional and Roth IRAs	Yes, in eligible brokerage IRAs	Yes, in eligible brokerage IRAs	No brokerage-style IRA custody
Other investments in the same account	Stocks, ETFs, mutual funds, bonds, and more	Stocks, ETFs, mutual funds, bonds, and more	Treasury securities only
Best suited for	Flexible, full-service T-bill investing	Existing Schwab customers	Small purchases held to maturity

Broker minimums can vary by offering, especially in the secondary market. Investors should treat $1,000 as a common brokerage minimum rather than a universal rule for every Treasury order.

Fees and Minimums in 2026

Fidelity and Schwab generally advertise online purchases of new-issue U.S. Treasury securities without a transaction commission. TreasuryDirect also does not charge a purchase commission. That makes the direct trading cost similar when all three platforms participate in the same auction.

“Commission-free,” however, does not mean that every Treasury transaction is free of economic cost. A secondary-market order can include a bid-ask spread: the difference between the price at which dealers will buy a bill and the price at which they will sell it. The spread may be small for actively traded Treasury securities, but it still reduces the investor’s effective return.

How a small spread affects a $1,000 investment

Assume two investors buy a Treasury bill with a $1,000 maturity value. One obtains it at auction for $981.50. The other buys it in the secondary market for $982.00 because of the available dealer price.

• Auction investor’s discount earnings at maturity: $18.50
• Secondary-market investor’s discount earnings at maturity: $18.00
• Difference in dollar return: $0.50

On a roughly six-month holding period, that $0.50 difference is approximately 0.10 percentage point on an annualized basis, depending on the exact price, settlement date, and yield convention. The cost is modest on a $1,000 order, but it becomes more noticeable with larger purchases or repeated trades.

Also review costs unrelated to the purchase itself. Brokers can charge for wire transfers, broker-assisted transactions, outgoing account transfers, margin borrowing, or specialty services. These are separate from the commission policy for online Treasury orders.

Yield: Why the Same T-Bill Can Pay Differently

Investors placing noncompetitive bids for the same new Treasury issue generally receive the auction’s high rate and corresponding price. A Fidelity customer should not receive a special “Fidelity yield,” nor should a TreasuryDirect customer automatically earn more because the purchase was made directly from the government.

Treasury bills do not usually make periodic interest payments. Instead, an investor buys a bill below its $1,000 face value and receives the full face value at maturity. If a bill costs $982 and pays $1,000 at maturity, the $18 difference represents the investor’s income before taxes.

Discount rate versus investment yield

Treasury auction results may display both a discount rate and an investment rate. They are not interchangeable. The bank discount rate uses the bill’s face value and a 360-day year. Investment yield is designed to be more comparable with yields quoted on other investments and reflects the amount actually invested. When comparing a T-bill with a certificate of deposit or money market fund, use comparable annualized yield measures.

A time-sensitive 2026 yield example

A published report dated March 16, 2026 cited a 3.68% yield on a 26-week Treasury bill. That figure is a dated example, not a permanent or current rate. Treasury yields can change at every auction and throughout each trading day as expectations for inflation, Federal Reserve policy, and demand for government debt change.

A bill in the secondary market can therefore offer a different yield from the next Treasury auction. Its price may have risen or fallen since issuance, and its remaining maturity may no longer match a standard 13- or 26-week term.

T-bill income is generally subject to federal income tax but exempt from state and local income taxes. That exemption can make a Treasury bill more attractive than a bank account or CD with the same stated yield, particularly in a high-tax state. Tax treatment depends on the account and the investor’s circumstances, so this comparison should not be treated as individualized tax advice.

Liquidity and Selling Before Maturity

Liquidity is one of the clearest differences between a brokerage and TreasuryDirect. Fidelity and Schwab provide access to the secondary Treasury market, allowing investors to request a quote and sell a bill before it matures.

An early sale does not guarantee the expected return. If market interest rates rise after purchase, an older bill with a lower yield will generally become less valuable. If rates fall, its market value may increase. Short-term bills have less interest-rate sensitivity than long-term bonds, but their prices can still move.

TreasuryDirect does not provide a simple brokerage-style sell button. To sell a marketable Treasury security before maturity, the investor generally must transfer it to a bank or broker that can complete the sale. Transfer requirements, account registration differences, identity verification, and processing time can add friction.

For an emergency fund, the better approach is to match maturities to anticipated cash needs instead of assuming that an early sale will be instant. Keep immediately needed money in an appropriate liquid account, then schedule T-bills to mature before known expenses such as taxes, tuition, insurance premiums, or a home purchase.

Ease of Use, Auto-Roll, and Account Features

Fidelity

Fidelity combines Treasury auctions, secondary-market trading, eligible automatic rollovers, telephone support, and other investments in one brokerage account. It is particularly useful for investors who want T-bills inside a Traditional IRA, Roth IRA, or another eligible retirement account.

Fidelity’s Auto Roll service can use the proceeds of a maturing eligible Treasury to purchase a new security of the same term at auction. Investors should still review eligibility, funding requirements, and cancellation deadlines. During the period between an auction order and settlement, Fidelity may reserve cash or reduce the amount shown as available to trade. This temporary hold helps ensure that money is available when the new security settles.

Charles Schwab

Schwab offers both new-issue Treasury orders and secondary-market trading, making it substantially more flexible than TreasuryDirect for early sales. Its main advantage may be consolidation: an existing Schwab customer can manage T-bills beside stocks, funds, and retirement assets without opening another account.

Automatic Treasury reinvestment features and eligible maturities may not match Fidelity’s service exactly. Schwab customers should confirm current term limits, timing, account eligibility, and whether reinvestment creates a gap between maturity and the next purchase.

TreasuryDirect

TreasuryDirect allows investors to submit noncompetitive auction bids directly to the Treasury. Opening an account requires personal identification information, a bank connection, and identity verification. Purchases can begin at $100, making it the most accessible option for smaller orders.

The account is separate from a conventional investment portfolio. Maturity proceeds can be directed according to the available payment and reinvestment instructions, but TreasuryDirect does not provide stocks, funds, brokerage IRAs, or an on-platform secondary market. Investors should verify their bank details and reinvestment selections well before an auction or maturity date.

Who Should Use Each Platform?

Choose Fidelity if:

• You want a practical default platform with auctions and secondary-market liquidity.
• You plan to use an eligible IRA.
• You value automatic rollovers and access to customer support.
• You want to manage T-bills alongside stocks, ETFs, and mutual funds.

Choose Schwab if:

• You already keep your investment or retirement accounts at Schwab.
• You want both auction access and the ability to sell before maturity.
• Portfolio consolidation and Schwab service are more important than differences in auto-roll functionality.
• You are willing to verify current automatic reinvestment restrictions.

Choose TreasuryDirect if:

• You want to invest in $100 increments instead of a common $1,000 brokerage minimum.
• You expect to hold each bill until maturity.
• You prefer buying through a government account.
• You do not need brokerage-style IRA custody or access to other investments.

No platform is automatically best for every investor. The decision depends on account type, order size, desired automation, and the possibility that cash will be needed before maturity. Investors who may sell early or want to hold T-bills inside an IRA will usually find a brokerage more practical.

Pros and Cons

Fidelity

Pros: Strong auto-roll support, IRA access, secondary-market liquidity, customer support, and portfolio consolidation.

Cons: Common $1,000 Treasury order minimum, a more complex bond-trading interface, and possible temporary cash holds around auction settlement.

Charles Schwab

Pros: Auction access, secondary-market trading, retirement accounts, and convenient integration for current Schwab customers.

Cons: Auto-roll rules may be more limited or change over time, and secondary-market orders can include spreads.

TreasuryDirect

Pros: $100 purchases, no purchase commission, direct auction participation, and straightforward hold-to-maturity ownership.

Cons: No conventional IRA, no on-platform secondary-market sales, a separate government account, and more friction if securities must be transferred.

What to Do Next: A Practical T-Bill Buying Checklist

1. Choose the account type. Decide whether the money belongs in a taxable account, an eligible IRA, or a short-term cash reserve.
2. Match the maturity to the expense. Consider 4-, 8-, 13-, 17-, 26-, or 52-week bills based on when the cash may be needed.
3. Compare available yields. Review the upcoming auction and compare it with secondary-market yields after accounting for the bid-ask spread.
4. Confirm the minimum. TreasuryDirect generally accepts $100 increments, while brokerage orders commonly begin at $1,000 per security.
5. Review settlement and available cash. Make sure enough settled cash will be available on the issue date and understand any temporary hold.
6. Check reinvestment instructions. Do not assume auto-roll is active. Confirm the term, timing, and destination of maturity proceeds.
7. Build a ladder. Divide cash among several maturity dates instead of placing the entire amount into one bill. A ladder can create recurring access to funds and reduce reinvestment-timing risk.
8. Save the tax records. Review the tax forms issued by the platform and account for the state and local tax exemption where applicable.
9. Recheck current policies. Treasury auction schedules, broker minimums, yields, fee schedules, and automatic reinvestment rules can change during 2026.

Bottom line: Fidelity is the broad default choice for flexibility, Schwab is an effective alternative for existing Schwab investors, and TreasuryDirect is most compelling for smaller purchases that will be held to maturity. The best platform is the one that matches the investor’s liquidity needs and account structure—not the one that appears to promise a special Treasury yield.

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