How to Buy Treasury Bills Through TreasuryDirect

Buy Treasury bills directly from the U.S. government through TreasuryDirect with no fees or middlemen.

1. Open your TreasuryDirect account online. Go to TreasuryDirect.gov and create an account using your Social Security number, bank account information, and driver's license or state ID. The government will verify your identity, which takes about 24 hours. You'll need a U.S. bank account to fund purchases and receive payments.
2. Choose your Treasury bill term and amount. Treasury bills come in 4-week, 8-week, 13-week, 26-week, and 52-week terms. The minimum purchase is $100, and you can buy in $100 increments up to $10 million per auction. Shorter terms typically offer lower rates but more flexibility.
3. Place a noncompetitive bid at auction. Select "noncompetitive bid" when placing your order, which means you'll accept whatever rate the auction determines. This guarantees you'll get your T-bills at the market rate. Competitive bidding is for institutions trying to negotiate specific rates and often gets rejected.
4. Fund your purchase before the auction deadline. Treasury auctions happen on specific dates throughout the week, with different terms auctioned on different days. You must submit your bid and ensure your linked bank account has sufficient funds before the auction closes, typically at 11:30 AM ET on auction day.
5. Receive your discounted purchase confirmation. Treasury bills are sold at a discount to face value. If you buy a $1,000 T-bill at a 5% rate, you might pay $975 upfront and receive the full $1,000 when it matures. The $25 difference is your interest earnings.
6. Set up reinvestment or plan for maturity. You can choose to automatically reinvest your T-bills when they mature, or have the full face value deposited to your bank account. Reinvestment keeps your money working but locks you into whatever rate the new auction offers.