How to buy US Treasury Bills (T-Bills) in 2023?

How To Buy Treasury Bills

You can buy T-bills online via TreasuryDirect (US government). Alternatively, banks and brokers like Public also offer this option. Auctions are held weekly to issue bills. Many individuals hesitate to invest their cash due to the inherent risk involved in the market. They understand that while the potential for gains exists, there is also the possibility of losing money. The thought of losing hard-earned dollars can be daunting for most people, who spend the majority of their adult lives working long hours.

If you have been held back by the fear of financial loss or are approaching retirement and are not comfortable with the volatility of the stock market, T-bills may be an ideal investment option for you. Treasury bills, also known as T-bills, offer a stable and secure foundation for your financial future, providing an opportunity to make your money work for you.

Table of Contents

  1. What Are US Treasury Bills?
  2. How do you make money with T-bills?
  3. Ways to invest in treasury bills?
  4. Is Investing in US Treasury bills (T-bills) safe?
  5. How do you buy and sell short term Treasury Bills?
  6. How to buy Treasury bills with Public?

What Are US Treasury Bills?

A Treasury bill (T-bill) is a short-term debt security issued by the United States Department of the Treasury. T-bills have a maturity of less than one year and are sold at a discount from their face value. The difference between the purchase price and the face value represents the interest earned on the T-bill.

How do you make money with T-bills?

  • Let’s say the Treasury Department issues a T-bill with a face value of $1,000, a maturity of 12 months, and yield-to-maturity of 4.8%. The purchase price of this T-bill would be $954 based on those figures.


    At maturity date, the investor would receive the full face value of $1,000. The difference of $46 between the value you receive and the value you paid represents the interest earned on the investment. The return of the T-bill would be calculated as the interest earned ($46) over the purchase price ($954) which equals 4.8%, the same as the yield-to-maturity at purchase.


    This is why the rate is ‘locked in’ at purchase if the T-bill is held to maturity – you are guaranteed by the US Government to get back the face value.

T-bills are considered to be very safe investments because they are backed by the full faith and credit of the United States government. They are also very liquid, meaning they can be easily bought and sold in large quantities in the secondary market with little impact on the underlying price

In summary, T-bills are short-term debt securities issued by the US government, sold at a discount, and backed by the full faith and credit of the US government.

Ways to invest in treasury bills?

There are a few ways to invest in Treasury bills (T-bills) depending on your investment goals, time horizon, and risk tolerance. Here are a few options:

  • Through a broker

    You can purchase T-bills through a broker or a bank, which will act as an intermediary between you and the Treasury Department. This may be a more convenient option if you don’t want to deal with the government directly.

  • TreasuryDirect

    You can purchase T-bills directly from the U.S. Treasury Department through TreasuryDirect or by visiting a Federal Reserve Bank. You can purchase T-bills (treasury securities) in denominations as low as $100.

  • Mutual funds and ETFs

    You can invest in T-bills indirectly by investing in a mutual fund or exchange-traded fund (ETF) that holds T-bills. This may be a good option if you don’t have a large sum of money to invest or if you want to diversify your portfolio.

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Is Investing in US Treasury bills (T-bills) safe?

US Treasury bills (T-bills) are considered to be a safe and low-risk investment because they are issued by the United States government and backed by its full faith and credit.

They are short-term debt securities with maturities of less than one year and are highly liquid. They are considered to be low-risk investments, but the value of T-bills can be affected by changes in interest rates. It also has a moderate correlation with inflation and have been shown to act as a partial hedge against rising inflation.. They are also often used by investors looking for a safe place to park their money while they wait for better investment opportunities.

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How do you buy and sell short term Treasury Bills?

You can buy short-term Treasury bills on TreasuryDirect (U.S. government’s portal). Brokers like Public and banks also offer options to buy and sell T-bills. If you choose not to hold your Treasuries until maturity, you can sell them only through a broker or bank.

How to buy Treasury bills with Public?

You can open a Treasury Account on Public—making it easy to put your cash in Treasury bills (T-bills). Public has partnered with Jiko, a revolutionary financial network designed to move and store money using Treasury bills, to offer this service. Treasury bills are custodied at the Bank of New York Mellon.

To move money into your Treasury Account, link your bank account or make a deposit with your debit card. Then, you can put your money into T-bills with as little as $100.

As of 2/16/24, you can earn a 5.3% yield with T-bills.* And because T-bills are a fixed-income asset, you lock in your rate of return at the time of purchase, providing you with a reliable yield.** High-yield savings accounts, by comparison, offer 4.6% APY on average, and their return is not fixed.***

A Treasury Account on Public offers many flexibilities of a bank account. You can access your cash at any time and manage your Treasury account in the same place as your stocks, crypto, and alternative assets.

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Make your cash work harder with a Treasury Account on Public, and do all of your investing in one place.

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Is there a minimum limit for investment in T-bills on Public?

Treasury bills (T-bills) are purchased in multiples of $100, so the account must remain above $100 to be invested in T-bills. Cash balances below $100 may remain in cash and can be withdrawn at any time.

Is there a maximum limit for investment in T-bills on Public?

The maximum daily limit for T-bill investments on Public is $10 million. If you’re interested in making a larger deposit, Public’s Customer Support team can help you find a solution.

Is my T-bill investment locked? Can I withdraw anytime?

A Treasury Account on Public gives you the flexibility of a bank account, so you can withdraw your cash at any time if you choose to—even before your T-bill has reached maturity.

How Are Treasury Bills (T-Bills) Taxed?

Interest from Treasury bills (T-bills) is subject to federal income taxes but not state or local taxes. Please consult your tax advisor for more information.

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