{"post":{"slug":"how-to-buy-treasury-bills-2026","title":"How to buy Treasury bills in 2026: TreasuryDirect vs brokerage step-by-step","excerpt":"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.","category":"finance","date":"February 4, 2026","author":"ByteLedger Team","content":"<span class=\"dropcap\">T</span>reasury 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.\n\n## What changed in 2026\n\n- **TreasuryDirect partial UX overhaul** — better than 2024, still bad. Login still requires a paper 1Password reset for some users.\n- **All major brokerages now show \"auto-roll\" T-bill purchases** as a one-click option.\n- **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.\n\n## Path 1: TreasuryDirect.gov\n\n**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.\n\n**Steps:**\n1. Create an account at TreasuryDirect.gov. You'll need SSN, bank routing/account, and ID verification.\n2. From the dashboard, \"BuyDirect\" → select Bills → choose 4-week, 8-week, 13-week, etc.\n3. Enter the amount (minimum $100, $100 increments).\n4. T-bills are sold via auction, typically Mondays/Tuesdays. You're buying at face value at the auction's discount rate.\n5. At maturity, the principal+interest gets deposited back into your linked bank account. Set \"auto-roll\" if you want continuous laddering.\n\n## Path 2: brokerage (Fidelity, Schwab, Vanguard)\n\n**Pros:** sane UI, instant settlement from existing cash, integrates with your investment dashboard. **Cons:** very small spread (typically $0-1 per $1000 face value).\n\n**Steps in Fidelity** (similar at Schwab/Vanguard):\n1. Funds settled in core position.\n2. \"Trade Bonds\" → New Issues tab → Treasury Bills.\n3. Pick your maturity: 4-week, 8-week, 13-week, 17-week, 26-week, 52-week.\n4. Enter quantity (in $1000s).\n5. Submit. Trade executes at next auction.\n6. At maturity, principal lands back in your core position. Set up auto-roll if desired.\n\n## Building a T-bill ladder for emergency cash\n\nThe 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.\n\n## Comparison: T-bill purchase paths\n\n| Path | Cost | UX | Best for |\n| --- | --- | --- | --- |\n| TreasuryDirect | Free | Bad | Hobbyist, max yield |\n| Fidelity | $0 (new), $1 (secondary) | Good | Most people |\n| Schwab | $0 (new), $1 (secondary) | Good | Most people |\n| Vanguard | $0 (new) | Acceptable | Vanguard loyalists |\n| Robinhood | $0 (no auto-roll yet) | Slick mobile | Mobile-first users |\n\n## Common mistakes to avoid\n\n**Buying secondary-market T-bills without checking yield-to-maturity.** Sometimes lower than just buying new issue. Always check the YTM.\n\n**Letting them auto-mature into 0% checking.** Set auto-roll or sweep the proceeds back into your core money market.\n\n**Forgetting state tax exemption.** T-bills are 100% state-tax-exempt at the federal-municipal level. Don't pay your state on them.\n\n**Putting your emergency fund in 52-week bills.** Match duration to need. 4-week bills for emergency cash, longer for known-future expenses.\n\n**Using TreasuryDirect for amounts over $50k.** The UX cost in your time is more than the $5-10 brokerage spread.\n\n## FAQ\n\n**Is the discount on T-bills the same as a yield?**\nT-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.\n\n**How does the tax work?**\nFederal: taxed as ordinary income. State: 100% exempt. Reported on 1099-INT.\n\n**Can I lose money on T-bills?**\nOn 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.\n\n**What's the difference between bills, notes, and bonds?**\nBills: under 1 year. Notes: 2-10 years. Bonds: 20-30 years. As maturity grows, sensitivity to rate changes grows.\n\n## Where to go next\n\nFor related guides see [Best HYSA rates in May 2026](/blog/hysa-rates-may-2026), [How to buy treasury bonds in 2026](/blog/how-to-buy-treasury-bonds-2026), and [Best online brokerages in 2026](/blog/best-online-brokerages-2026).","hue":275,"metaTitle":"How to Buy Treasury Bills in 2026 (Step-by-Step)","metaDescription":"Step-by-step 2026 guide to buying T-bills — TreasuryDirect vs brokerage, current yields, tax treatment, and how to build a T-bill ladder for cash.","keywords":["how to buy treasury bills","treasurydirect 2026","buy t bills brokerage","4 week t bill yield","treasury bill ladder","fidelity buy t bills","schwab t bills","vanguard t bills","state tax exempt t bills","t bill vs hysa"],"tldr":["**T-bills yield 4.30-4.50% in May 2026** — competitive with HYSAs but state-tax-free.","**TreasuryDirect.gov is free but has a 2003-era UI.** Brokerages charge $0-1/bill but make it 5x easier.","**Use a 4-week ladder for emergency funds.** Maturity gives you cash every Tuesday.","**For amounts over $10k, the brokerage path is worth the small spread** for the better UX alone."],"readTime":"3 min read","wordCount":717},"related":[{"slug":"treasury-bills-vs-savings-2026","title":"Treasury bills vs savings accounts in 2026: which earns more after tax?","excerpt":"T-bills and HYSAs are neck-and-neck on headline yield in 2026, but the state-tax exemption on T-bills can shift the winner depending on where you live.","category":"finance","date":"April 26, 2026","author":"ByteLedger Team","readTime":"4 min read","hue":280},{"slug":"how-to-buy-treasury-bonds-2026","title":"How to buy Treasury bonds in 2026 (TreasuryDirect step-by-step)","excerpt":"A clear walkthrough for buying T-bills, notes, and bonds in 2026 — TreasuryDirect vs broker, when to use each, and what to watch for.","category":"finance","date":"January 19, 2026","author":"ByteLedger Team","readTime":"3 min read","hue":280},{"slug":"treasury-ladder-vs-money-market-2026","title":"Treasury Ladder vs Money Market: Where to Park Cash","excerpt":"Both hold short-term government debt and they behave differently on taxes, liquidity, and effort. 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