Treasury Bills
Treasury bills, or T-bills, are sold in terms ranging from a few days to 52 weeks. Bills are typically sold at a discount from the par amount (also called face value). For instance, you might pay $990 for a $1,000 bill. When the bill matures, you would be paid $1,000. The difference between the purchase price and face value is interest. It is possible for a bill auction to result in a price equal to par, which means that Treasury will issue and redeem the securities at par value.
You can buy bills from us in TreasuryDirect and Legacy Treasury Direct. (Legacy Treasury Direct offers only 13- and 26-week bills and is being phased out.)
Effective April 2009, TreasuryDirect permits accounts for both individuals and various types of entities including trusts, estates, corporations, partnerships, etc. See Learn More about Entity Accounts for full information on the new registration types.
To compare the features of TreasuryDirect and *Legacy Treasury Direct, see our comparison chart.
You also can purchase bills through banks and brokers through either competitive or non-competitive bidding. You can hold a bill until it matures or sell it before it matures.
- Learn more in "Treasury Bills in Depth"
- Buy T-Bills in TreasuryDirect
- *Buy T-Bills in Legacy Treasury Direct
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 determined at auction. See rates in recent auctions |
Minimum Purchase: | $100 |
Maximum Purchase (in a single auction): |
Noncompetitive - $5 million Competitive - 35% of offering amount (See types of bidding in “Auctions in Depth”) |
Investment Increment: | Multiples of $100 |
Issue Method: | Electronic |
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Rates & Terms
- Treasury bills are issued for terms of 4, 13, 26, and 52 weeks. Another type of Treasury bill, the cash management bill, is issued in variable terms, usually of only a matter of days.
- 4-week, 13-week, 26-week, and 52-week bills are auctioned on a regular schedule.
- Cash management bills aren't auctioned on a regular schedule.
- Bills are sold at a discount. The discount rate is determined at auction.
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 for Treasury bills?
- How do I know when bills will be auctioned?
- Do you still issue bills in paper form?
Want e-mail notification of auction results and upcoming auctions? Sign up for our mailing list.
*Legacy Treasury Direct is being phased out.