TREASURY PRODUCTS

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
at a glance
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

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?