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 5.12%, compared to 5.16% the previous market day and 4.59% last year. This is higher than the long term average of 2.95%. 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 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.
How much does a $10,000 treasury bill cost? ›
They are sold at a discount to face value, and the difference between the discounted price and face value is your return on investment. For example, if you buy a 12-week T-bill with a face value of $10,000 for $9,800, the difference of $200 is your return for holding the security for 12 weeks.
What is the yield on a 6 month Treasury bill? ›
Basic Info
6 Month Treasury Rate is at 5.41%, compared to 5.42% the previous market day and 5.04% last year. This is higher than the long term average of 2.84%. The 6 Month Treasury Bill Rate is the yield received for investing in a US government issued treasury security 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.
What is the current 6 month Treasury bill rate? ›
Basic Info
6 Month Treasury Bill Rate is at 5.16%, compared to 5.17% the previous market day and 4.85% last year.
What happens when your T-bill matures? ›
When the bill matures, you are paid its face value. You can hold a bill until it matures or sell it before it matures.
Where to buy Treasury bonds, notes or bills. While you can buy Treasurys like T-bonds directly from the source — the U.S. government — one of the most common ways people add them to their portfolio is by investing in Treasury exchange-traded funds or mutual funds through bank, brokerage or retirement accounts.
How do T-bills work for dummies? ›
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.
Why don't people invest in the treasury bill? ›
The biggest downside of investing in T-bills is that you're going to get a lower rate of return compared to other investments, such as certificates of deposit, money market funds, corporate bonds or stocks. If you're looking to make some serious gains in your portfolio, T-bills aren't going to cut it.
What happens when a treasury bill matures on TreasuryDirect? ›
The only interest payment to you occurs when your bill matures. At that time, you are paid the par amount (also called face value) of the bill.
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.
How much does it cost to buy the T-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.
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.
How much does a 3 month T-bill cost today? ›
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%.
What are the charges for T-bills? ›
$2.50 + GST each for purchase and maturity. There is an additional fee of $2.00 + GST per counter per quarter.
