Money · May 4, 2026

How to buy Treasury bills in 2026: TreasuryDirect vs brokerage step-by-step

Two paths to buy T-bills in 2026 — TreasuryDirect (free, clunky) or your brokerage (easier, sometimes a small markup). Here's the right call by use case.

By ByteLedger Team

Treasury bills became a personal-finance default after rates climbed in 2023. In May 2026, with 4-week T-bills yielding 4.40% and full state-tax exemption, they remain one of the best risk-free homes for cash — better than most HYSAs once you account for taxes. Here's the step-by-step on both paths to buy them.

What changed in 2026

TreasuryDirect partial UX overhaul — better than 2024, still bad. Login still requires a paper 1Password reset for some users.
All major brokerages now show "auto-roll" T-bill purchases as a one-click option.
State tax savings now matter more for high earners in CA, NY, and other high-tax states — the effective T-bill yield is 30-50bps higher than HYSA after state tax.

Path 1: TreasuryDirect.gov

Pros: zero fees, direct from the source. Cons: the UI is from 2003. Account opening can take 1-3 days for ID verification. Withdrawals sometimes require security questions you set up in 2007.

Steps:

Create an account at TreasuryDirect.gov. You'll need SSN, bank routing/account, and ID verification.
From the dashboard, "BuyDirect" → select Bills → choose 4-week, 8-week, 13-week, etc.
Enter the amount (minimum $100, $100 increments).
T-bills are sold via auction, typically Mondays/Tuesdays. You're buying at face value at the auction's discount rate.
At maturity, the principal+interest gets deposited back into your linked bank account. Set "auto-roll" if you want continuous laddering.

Path 2: brokerage (Fidelity, Schwab, Vanguard)

Pros: sane UI, instant settlement from existing cash, integrates with your investment dashboard. Cons: very small spread (typically $0-1 per $1000 face value).

Steps in Fidelity (similar at Schwab/Vanguard):

Funds settled in core position.
"Trade Bonds" → New Issues tab → Treasury Bills.
Pick your maturity: 4-week, 8-week, 13-week, 17-week, 26-week, 52-week.
Enter quantity (in $1000s).
Submit. Trade executes at next auction.
At maturity, principal lands back in your core position. Set up auto-roll if desired.

Building a T-bill ladder for emergency cash

The classic emergency-fund move: split $20k into four $5k 4-week T-bills, each issued one week apart. Result: every Tuesday, $5k matures. If you don't need it, it auto-rolls. If you do need it, you have it within days. You're earning 4.4% on cash that's effectively as liquid as a HYSA, with the state-tax advantage.

Comparison: T-bill purchase paths

Path	Cost	UX	Best for
TreasuryDirect	Free	Bad	Hobbyist, max yield
Fidelity	$0 (new), $1 (secondary)	Good	Most people
Schwab	$0 (new), $1 (secondary)	Good	Most people
Vanguard	$0 (new)	Acceptable	Vanguard loyalists
Robinhood	$0 (no auto-roll yet)	Slick mobile	Mobile-first users

Common mistakes to avoid

Buying secondary-market T-bills without checking yield-to-maturity. Sometimes lower than just buying new issue. Always check the YTM.

Letting them auto-mature into 0% checking. Set auto-roll or sweep the proceeds back into your core money market.

Forgetting state tax exemption. T-bills are 100% state-tax-exempt at the federal-municipal level. Don't pay your state on them.

Putting your emergency fund in 52-week bills. Match duration to need. 4-week bills for emergency cash, longer for known-future expenses.

Using TreasuryDirect for amounts over $50k. The UX cost in your time is more than the $5-10 brokerage spread.

FAQ

Is the discount on T-bills the same as a yield? T-bills are sold below face value; the difference is the interest. The "discount yield" is what you see in tables, the "investment yield" or APY is the more apples-to-apples number when comparing to HYSAs.

How does the tax work? Federal: taxed as ordinary income. State: 100% exempt. Reported on 1099-INT.

Can I lose money on T-bills? On new-issue 4-week T-bills held to maturity: no, they're as risk-free as US debt gets. On secondary-market sales before maturity: yes, you can lose principal if rates rise.

What's the difference between bills, notes, and bonds? Bills: under 1 year. Notes: 2-10 years. Bonds: 20-30 years. As maturity grows, sensitivity to rate changes grows.