TreasuryDirect: How to Buy T-Bills, T-Notes, T-Bonds, and I Bonds Directly

Setting Up Your TreasuryDirect Account

Creating a TreasuryDirect account is free and takes about 10-15 minutes. Go to TreasuryDirect.gov and click "Open an Account." You will need your Social Security number, a US bank account and routing number, a valid email address, and a driver's license or state ID for identity verification. The system will ask you to create a username and password, set up security questions, and register your bank account for electronic transfers. Once registered, the Treasury will mail you an account authorization card and a password in separate envelopes for security — this is the only slow part of the process, typically taking 5-10 business days to receive both. After you activate your account, you can begin purchasing securities immediately.

Important security note: TreasuryDirect uses a unique login system. You will have a custom picture and phrase that display on the login page to verify you are on the legitimate site (this prevents phishing). Always check that your custom image and phrase appear before entering your password. Also note that TreasuryDirect has limited customer service — there is no phone support for routine transactions, and online support requests can take days. This is a self-service platform, so read the instructions carefully before making transactions. See our guide to Treasury security types to understand which securities to buy.

Understanding Treasury Auction Schedules

The US Treasury publishes a regular schedule of securities auctions. T-bills (4-week, 8-week, 13-week, 17-week, 26-week, and 52-week) are auctioned weekly or every four weeks. T-notes (2, 3, 5, 7, and 10-year) and T-bonds (20 and 30-year) are auctioned monthly or quarterly. TIPS (5, 10, and 30-year) are auctioned on a regular schedule. I bonds are issued monthly. The full auction schedule is published at TreasuryDirect.gov at the beginning of each quarter. You can also sign up for email notifications for upcoming auctions.

Each auction has an announcement date (when the terms are published), an auction date (when bids are submitted), an issue date (when the security is issued and you must have funds available), and a maturity date (when the security matures and you receive your principal). For TreasuryDirect, the cutoff for submitting non-competitive bids is typically 11:00 AM Eastern time on the auction date. After the auction, the Treasury announces the auction results — the high yield, the price, and the bid-to-cover ratio — which you can view on TreasuryDirect or on the Treasury's auction results page.

How to Place Non-Competitive Bids

Non-competitive bidding is the simplest way for individual investors to buy Treasury securities at auction. You agree to accept whatever yield or price is determined by the auction, and you are guaranteed to receive your full order. There is no need to guess the winning yield — you simply state how much you want to buy, and you get filled at the auction-clearing price. The maximum non-competitive bid per auction is $10 million for T-bills and $5 million for T-notes and T-bonds.

Here is how to place a non-competitive bid on TreasuryDirect. Log in to your account. Select "BuyDirect" from the menu. Choose the security type (T-bill, T-note, T-bond, TIPS, or I bond). Select the auction you want to participate in. Enter the amount you want to purchase (minimum $100 for T-bills, $100 for notes and bonds). Choose how you want to handle reinvestment: "reinvest at maturity" automatically buys a new security at the next auction, or "redeem at maturity" returns the proceeds to your bank account. Review and submit your bid. The Treasury will deduct the purchase amount from your bank account on the issue date. On the maturity date, the proceeds (face value) are deposited to your bank account or reinvested, depending on your selection.

Reinvesting vs Taking Cash at Maturity

When a Treasury security matures, you can either take the proceeds as cash (deposited to your linked bank account) or reinvest them into a new security. TreasuryDirect allows you to set up automatic reinvesting for T-bills — your maturing T-bill proceeds automatically purchase a new T-bill of the same term at the next auction. This is useful for maintaining a continuous T-bill ladder without manual intervention.

If you choose to reinvest, the Treasury will automatically place a non-competitive bid for you at the next auction of the same term. The proceeds (face value) from your maturing security must cover the purchase price of the new security. If the purchase price exceeds the proceeds (which can happen if T-bill yields fall, making the discount smaller), you must have sufficient funds in your bank account to cover the difference. If the purchase price is less than the proceeds, the difference is deposited to your bank account. You can change your reinvestment selection at any time before the auction cutoff. For T-notes and T-bonds, reinvesting works differently — you receive the principal and must submit a new bid if you want to buy again.

Tax Reporting for Treasury Securities

Interest earned on Treasury securities is subject to federal income tax but exempt from state and local income taxes. This is a significant advantage for investors in high-tax states. TreasuryDirect provides tax reporting information in your account history, and you can download Form 1099-INT for the previous tax year. For T-bills, the discount (difference between purchase price and face value) is reported as interest income in the year the bill matures. For T-notes and T-bonds, the semi-annual coupon payments are reported as interest income in the year received.

For I bonds and EE bonds, you have a choice. You can report the interest each year as it accrues (pay tax annually), or you can defer reporting until you redeem the bond or it reaches final maturity (30 years for EE bonds, up to 30 years for I bonds). Most investors choose to defer, which means no tax until redemption. When you redeem, all accrued interest is reported as ordinary income in that year. This can create a large tax bill if you redeem many years of accrued interest at once. See our tax planning guide for strategies to manage the tax impact of Treasury securities. For a comparison of TreasuryDirect with brokerage alternatives, see our Treasury bills vs notes vs bonds guide.

Is TreasuryDirect safe and secure?

Yes, TreasuryDirect is operated by the US Department of the Treasury's Bureau of the Fiscal Service. It uses multi-factor authentication, a custom image and phrase login system, and encrypted connections. Your securities are held in your TreasuryDirect account and are backed by the full faith and credit of the US government. There is no SIPC or FDIC insurance needed because you directly own US government securities. The main risk is user error — forgetting your password or security questions can be difficult to resolve because customer support is limited. Keep your account information safe and maintain backup access methods.

Can I sell Treasury securities before maturity on TreasuryDirect?

No, TreasuryDirect does not allow you to sell securities before maturity in the secondary market. If you buy a T-bill, T-note, or T-bond through TreasuryDirect, you must hold it to maturity. If you need the ability to sell before maturity, buy Treasury securities through a brokerage account (Fidelity, Schwab, Vanguard, etc.) where you can trade them on the secondary market at any time. TreasuryDirect is designed for buy-and-hold investors. The exception is savings bonds (I bonds and EE bonds), which can be redeemed after 12 months (with a 3-month interest penalty if redeemed within the first 5 years).

What is the minimum amount to buy through TreasuryDirect?

The minimum purchase for T-bills, T-notes, and T-bonds in TreasuryDirect is $100, with increments of $100 thereafter. For I bonds and EE bonds, the minimum is $25 per purchase, and you can buy up to $10,000 per person per year for each type. These low minimums make TreasuryDirect accessible to any investor. There are no account maintenance fees, no transaction fees, and no annual fees.

How long does it take to get money out of TreasuryDirect?

When a Treasury security matures (or you redeem a savings bond), the proceeds are deposited to your linked bank account. The Treasury processes redemptions on the maturity date and funds typically arrive in your bank account within 1-2 business days. For I bonds and EE bonds, electronic redemptions are processed within 1-2 business days of your request. There is no way to speed up this process. If you need immediate access to your cash, a brokerage account with a money market fund may be more appropriate.

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