Treasury Bills
Treasury bills, or T-Bills, are short-term securities that you purchase either directly from Treasury or through a bank or broker. To buy a Treasury bill from the U.S. Treasury you place a competitive or noncompetitive bid in an auction.
- Noncompetitive: You agree to accept whatever rate is determined at auction.
- Competitive: You specify the rate you will accept at auction.
You can hold a bill until maturity or sell prior to maturity at the current market rate. A bill held until maturity can be reinvested into another bill or we redeem the bill and deposit its principal into your checking or savings account.
Use Treasury bills to:
- Diversify your investment portfolio
- Participate in a secure, short-term investment
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Original Issue Rate: |
The discount rate awarded in the original corresponding competitive auction.
See rates in recent auctions |
Minimum Purchase: |
$1,000 |
Maximum Purchase: |
Noncompetitive - $5 million
Competitive - 35% of offering amount |
Investment Increment: |
Multiples of $1,000 |
Issue Method: | Electronic entry into your account |
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Rates & Terms
- Treasury bills are issued electronically, usually for a period of 13 or 26 weeks.
- Two other bills, 4-week bills and cash management bills, can't be bought through an account with the U.S. Treasury. However, after buying a 4-week bill or cash management bill from a bank or broker, you can transfer the bill into an account with the U.S. Treasury.
- The terms of cash management bills vary, but usually are only a matter of days. Unlike other Treasury bills, cash management bills aren't sold on a regular schedule.
- Bills are issued at a discount. For example:
If you buy a $10,000 26-week Treasury bill for $9,750 and hold it until maturity, your interest will be $250.
Redemption Information
- Minimum Term of Ownership: None
- Interest-Earning Period: To maturity
Tax Considerations
- Interest income is exempt from State and local income taxes.
- Interest income is subject to Federal income tax.
Treasury Bill-Related FAQs
- What are the maturity terms available for Treasury bills?
- How can I purchase Treasury bills?
- How do I know when bills will be auctioned?
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