How To Buy Treasury Bills

You can buy Treasury bills directly from the US Treasury through TreasuryDirect, or you can buy them in a brokerage account. The top 3 brokerage firms Vanguard (on the brokerage platform), Fidelity, and Schwab, all sell newly issued government bonds for free. I use Fidelity for this because it offers better customer service than TreasuryDirect.

The U.S. Treasury is currently selling new monthly three- and six-month treasury bills. On Thursday afternoon you will see new expenses in the trading account. Place your order between Thursday afternoon and Sunday. If you are interested in an even shorter term, they also sell all farms for 4 weeks and farms for 8 weeks. Place your order between Tuesday afternoon and Wednesday. View the preliminary schedule of the US Treasury auction to see the current schedule of future sales.

The return is determined per auction, but you do not have to worry about the bid. Banks will bid and you score. You get the same return on your small $ 1,000 purchase as a bank buying $ 100 million. Treasury accounts are sold at a discount. Pay just under $ 1000 for every $ 1000 charged. When the account expires, you will receive a total of $ 1,000. The difference is your interest. If you buy a taxable investment account, the broker will send you the necessary tax form to pay your taxes.

Faithful

I took these photos when I placed an order with Fidelity. Make sure to choose new editions. You will only receive compensation or distribution if you purchase a new issue.

Treasury accounts are sold for $ 1,000 in an inventory account. Enter a value of 1 if you want to buy $ 1000 treasury bills. It costs just under $ 1000. With Fidelity, you can set up auto-navigation to automatically buy another Treasury note when the coupon expires. Since I have to use the money after the bills have ended, I did not opt for automatic navigation.

Again, Fidelity does not pay commissions for the purchase of new Treasury bills.

On the front

Here are the steps to buy treasury bills on a Vanguard brokerage account (the latest platform, not the only investment fund platform). Again, if you are unsure how to do this, contact customer service. Make sure you select “Auction”. You just don’t get an offer/offer when you buy a new issue.

Charles Schwab

You can do the same with Charles Schwab. There is also no compensation from Schwab. I don’t have screenshots because I don’t have a Schwab account.

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