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You can buy Treasury bills through a brokerage account either by placing an order for a new bill at auction or by purchasing an outstanding bill in the secondary market. For a straightforward auction purchase, choose a noncompetitive bid: you enter an amount and accept the rate determined at auction. For a secondary-market purchase, review the broker’s current price and yield for the specific bill before placing an order.
What you are buying
Treasury bills are short-term U.S. government securities issued electronically. Treasury lists terms of 4, 6, 8, 13, 17, 26 and 52 weeks; shorter bill auctions are generally weekly, while 52-week bills are generally auctioned every four weeks. The current Treasury bill page, auction calendar and offering announcement provide the terms and dates for a particular issue.
Treasury says bills are sold at a discount or at face value, and the holder receives face value at maturity. For a discounted bill, the difference between what you pay and the face amount is your return. Treasury lists a $100 minimum purchase and $100 increments, but your broker may offer different order sizes or requirements.
Choose between an auction and a secondary-market purchase
A broker may offer access to new-issue Treasury auctions, outstanding bills in the secondary market, or both. Treasury says individuals can buy marketable securities through a bank, broker or dealer. In your account, look for sections labelled “fixed income,” “bonds,” “new issues” or “Treasury auctions”; the exact labels, available bills and order deadlines depend on the provider.
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| What to compare | New-issue auction | Secondary-market bill |
|---|---|---|
| When price or rate is set | The final discount rate is determined through the auction; it is not known when you place the order. | The broker displays the current price and yield for the offered bill. They can change with market conditions. |
| Maturity | The bill has the term and maturity date of the new issue. Check the Treasury announcement and broker order details. | The bill is already outstanding, so check its specific maturity date and remaining term. |
| Order size | Treasury lists $100 minimums and $100 increments; confirm the broker’s available sizes. | Minimums and order sizes depend on the broker and offering. |
| Security selection | You select an available auction and term; the issue’s final rate is set at auction. | You can review the specific listed bill, including its identifier if shown, price, yield and maturity date. |
| Fees and order conditions | Check the broker’s current fee schedule, order deadline and funding rules. | Check the live quote, order conditions, any transaction charges and any representative-assisted fee. |
Treasury bills are transferable and may be sold before maturity, but a secondary-market sale takes place at the market price then available. That price is not simply the original auction price. Review the broker’s quote and yield before buying; neither the original purchase price nor the face amount is assured if you sell early.
How to place a Treasury bill auction order
- Confirm your account supports individual Treasuries. Open the fixed-income or bond area of your brokerage account and find its Treasury auction or new-issue listings. Availability and navigation vary by broker.
- Match the offering to Treasury’s calendar. Choose a listed bill term and auction, then compare the broker’s offering with Treasury’s current auction calendar and announcement. Verify the issue and maturity dates.
- Select a noncompetitive bid for a specified amount at the auction-determined rate. You do not enter a rate; you agree to accept the auction result. Treasury says compliant noncompetitive bids are awarded in full up to the applicable limit. TreasuryDirect’s general limit is $10 million per auction; confirm the rules that apply to your route and order.
- Review the order before submitting. Check the term, security identifier if shown, auction, issue and maturity dates, amount, bid type, order deadline, funding source, and when funds will be reserved or debited. Those operational details are provider-specific.
- Submit through the broker and check the result. The rate is established through the auction, not guaranteed in advance. Review the broker’s confirmation for the final details and any next steps.
A competitive bid works differently: you specify the discount rate you are willing to accept, and the bid may be accepted in full, accepted in part or rejected depending on the auction result. Competitive bids must be placed through a broker, bank or dealer; TreasuryDirect accepts only noncompetitive bids. Treasury says a bidder cannot submit both types in the same auction. Unless you understand the allocation risk, a competitive bid is not the straightforward choice for an individual seeking a set purchase amount.
How to buy an outstanding bill
- Open the broker’s Treasury or fixed-income listings. Select the secondary-market area rather than a new-issue auction.
- Compare the offered bills. Review each bill’s maturity date, remaining term, price, displayed yield, order minimum and any available security identifier. Choose based on the particular terms you want, not on an assumption that its price matches the original auction.
- Check execution costs and conditions. Read the broker’s current fee schedule and the order ticket, including any charge for representative assistance. Secondary-market quotes and terms are specific to the security and time you trade.
- Enter and verify the order. Confirm the security, amount, quoted price or yield, funding arrangement and order conditions before submitting. Save or review the trade confirmation.
Check costs, funding and timing before committing cash
Brokerage workflows and charges are not uniform. For illustration, Charles Schwab lists online Treasury auction and secondary trades at $0 and a $25 broker-assisted charge. Fidelity lists online Treasury auctions and secondary issues at $0, with a $19.95 representative-assisted Treasury auction charge. These are the respective providers’ published prices accessed in 2026, not market-wide rates; verify current prices and account terms directly with your broker. A $0 listed transaction charge does not establish that every broker is free or eliminate price effects such as a bid-ask spread in a secondary-market trade.
- Check whether the broker reserves funds when you enter an auction order and when cash will be debited.
- Confirm the broker’s order cutoff; it may differ from the auction date and is provider-specific.
- Review any minimums, available order sizes, cancellation rules and assisted-service charges shown for that order.
- For a secondary-market order, use the live quote and read the order ticket before submitting; displayed prices and yields can change.
What happens at maturity, and what if you sell early?
At maturity, Treasury pays the bill’s face value. If you bought at a discount and hold it to maturity, the difference between the purchase price and face value is the bill’s return. Treasury also allows a bill to be sold before maturity, but the sale price is then set by the market. It may be above or below what you paid, so an early sale does not guarantee recovery of your purchase price or receipt of the full face amount. Check the broker’s current quote, yield, order conditions and charges before selling.
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Tax treatment
Treasury’s general tax summary says interest earned on Treasury bills is subject to federal tax and exempt from state and local taxes. Individual tax circumstances can differ; consult current IRS guidance or a tax professional if you need advice for your situation.
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