You can buy Treasury bills through a brokerage account either by placing an order for a new bill at auction or by purchasing an already-issued bill in the secondary market. The auction route lets you name an amount but not the final rate; a secondary-market listing shows a live price and yield for a specific bill. In either case, check the maturity date, order details, funding rules, and any broker charges before submitting.
What Treasury bills are—and what a brokerage account can do
Treasury bills are short-term U.S. government securities issued electronically in terms of 4, 6, 8, 13, 17, 26, and 52 weeks. Shorter-term auctions generally occur weekly, while 52-week bills are generally auctioned every four weeks. The Treasury’s Treasury Bills page and its current auction calendar and offering announcements are the places to verify the available term and exact dates.
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A brokerage account that supports individual Treasury securities can provide access to new-issue auctions, outstanding bills, or both. Treasury says individuals may buy marketable securities through a bank, broker, or dealer. In a broker’s account, look for sections labeled something like “fixed income,” “bonds,” “new issues,” or “Treasury auctions”; the labels and order windows are not universal. Your broker determines its own order sizes, deadlines, funding process, and available offerings.
Treasury lists a $100 minimum purchase in $100 increments, and a $10 million maximum noncompetitive bill purchase per auction through TreasuryDirect. A broker may offer different order-size options or limits, so confirm what the order screen permits before proceeding.
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Choose between a new-issue auction and a secondary-market bill
| What to compare | New-issue auction | Secondary-market purchase |
|---|---|---|
| When the rate or price is determined | The final discount rate is set through the auction; it is not known when you place a noncompetitive order. Treasury describes the auction process in its bill guidance and auction information. | The broker displays a current price and yield for an outstanding bill. The quote can change before execution. |
| Maturity and remaining term | You choose from the terms offered for that auction; check the issue and maturity dates. | The bill already has an issue date and maturity date. Its remaining term may be shorter than its original term. |
| Order size and available bill | Check the broker’s order options and its deadline for that auction. | Check the listing’s available amount, minimum order, and specific security identifier, if shown. |
| Price, yield, and charges | The auction discount rate is determined after bidding. Check the broker’s fee information and any assisted-order charge. | Review the live price and yield, plus any displayed transaction or representative-assisted charge. A secondary-market price is not simply the original auction price. |
| How you select the bill | Choose the auction term and bid type offered by the broker. | Select a particular outstanding bill and its maturity. |
Treasury bills are transferable and can be traded before maturity. For a secondary-market order, use the broker’s live quote and displayed order conditions rather than assuming the bill can be bought at its original issue price.
How to place an auction order through a broker
- Open the brokerage account’s fixed-income area. Find the new-issue or Treasury-auction listings. Make sure the account supports individual Treasury securities, rather than relying on a general bond or fund listing.
- Verify the auction and bill term. Compare the broker’s listing with Treasury’s current auction calendar and the offering announcement. Confirm the term and relevant dates. The final auction discount rate will not be available in advance.
- Select the bid type. Most individuals seeking a known purchase amount use a noncompetitive bid: specify the amount and accept the rate established at auction. A competitive bid requires specifying a discount rate and may receive a full, partial, or no award. Treasury requires competitive bids to be placed through a broker, bank, or dealer; TreasuryDirect accepts only noncompetitive bids. You cannot submit both types as the same bidder in one auction, as explained in Treasury’s auction FAQ.
- Review the order before submitting. Check the bill term, security identifier or CUSIP if shown, auction and maturity dates, amount, funding source, order deadline, and bid type. Confirm whether the broker reserves cash when you place the order and when it will debit the account; those details vary by provider.
- Check the fee and assistance channel. Online and representative-assisted orders can have different charges. For example, Schwab lists $0 for online Treasury auction and secondary trades and a $25 broker-assisted charge on its Fixed Income Pricing page. Fidelity lists $0 for online Treasury auctions and secondary issues and a $19.95 representative-assisted Treasury auction charge on its Trading Commissions and Margin Rates page. These are provider-specific prices accessed in 2026, not market-wide rates; verify current fees and account terms with the broker before placing an order.
- Submit before the broker’s cutoff and check the result. Broker deadlines can differ from Treasury’s auction schedule. After the auction, review the award and final rate in the account, along with the settlement and maturity information.
How to buy an outstanding bill in the secondary market
- Open the broker’s fixed-income or bond listings. Choose the secondary-market Treasury bill listings rather than a new-issue auction.
- Compare the actual bill and quote. Check its maturity date and remaining term, price, displayed yield, order minimum, available amount, and identifier if shown. Make sure the maturity fits your plans; a bill with a familiar original term may have substantially less time remaining.
- Check order conditions and costs. Review any transaction charge, representative-assisted fee, and order conditions shown before submitting. For a secondary trade, the quote and price reflect the market when the order is executed; they may differ from the bill’s original auction terms.
- Submit and confirm the trade details. Review the order confirmation for the security, amount, price, yield, and maturity date. If you expect to hold until maturity, use that date to plan when the face value is due.
How the return works, and what happens if you sell early
Treasury says bills are sold at a discount or at par, and that the investor is paid the bill’s face value at maturity. For a discounted bill, the difference between the purchase price and face value is the return. The final auction rate varies from auction to auction, so use the current Treasury auction result rather than relying on a rate from an older listing or article.
You can sell a bill before maturity, but the sale price is then set by the market. It may be higher or lower than what you paid; do not assume an early sale returns your original purchase price or the full face value. Before selling, check the broker’s live quote, yield, order conditions, and charges.
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Tax treatment to keep in mind
Treasury’s general tax summary says interest earned on bills is subject to federal tax and exempt from state and local taxes. That is general information, not a personalized tax conclusion. If your circumstances are unusual or you need to determine how to report a holding, consult current IRS guidance or a tax professional.
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