You should purchase Treasury payments instantly from the federal government at TreasuryDirect.gov, or by way of a brokerage or checking account. T-bills are solely obtainable in digital kind.

Some on-line brokers permit you to buy particular person T-bills, and a few provide Treasury accounts, which do the work of buying T-bills for you, holding them to maturity, after which reinvesting the income.

Whether or not you purchase your T-bills from TreasuryDirect or from a monetary establishment, you’ll have to arrange an account, and hyperlink your financial institution for fee.

Then, resolve which maturity of T-bill you need to purchase.

The federal government sells T-bills that mature in 4, six, eight, 13, 17, 26 or 52 weeks. Brokers could provide all of those maturity lengths, or solely choose phrases.

T-bills are sometimes offered at a reduction to their face worth, and this low cost determines the yield you’ll earn by holding a invoice to maturity. For instance, when you purchased a four-week, $100 Treasury invoice at a reduction, you’d pay the discounted worth, then get the total $100 on the finish of the 4 weeks.

TreasuryDirect.gov sells Treasury payments on-line at public sale, and a minimal bid of $100 is required. Brokerages could ask for increased or decrease minimums, relying on the account.

T-bills are thought of a comparatively secure short-term funding as a result of they’re backed by the U.S. authorities, and assured to pay out when held for the total time period.

You can even put money into T-bills not directly by way of Treasury ETFs or mutual funds.