With T-bill yields around 4.25% in early 2026, Treasury bills are paying more than most savings accounts — and the interest is state-tax-exempt. Here's how to buy them.
What Are Treasury Bills?
Treasury bills (T-bills) are short-term debt obligations issued by the U.S. federal government. They come in maturities of 4 weeks, 8 weeks, 13 weeks, 17 weeks, 26 weeks, and 52 weeks. Unlike bonds that pay periodic coupons, T-bills are sold at a discount to their face value and mature at full face value. Your return is the difference between what you pay and what you receive at maturity.
For example, a $10,000 T-bill with a 4.25% yield on a 26-week maturity would cost you about $9,790 at purchase. At maturity, the Treasury deposits the full $10,000 into your account — earning you $210 in interest with zero credit risk.
Current T-Bill Rates (March 2026)
| Maturity | Approximate Yield |
|---|---|
| 4-week | ~4.25% |
| 8-week | ~4.28% |
| 13-week | ~4.30% |
| 26-week | ~4.25% |
| 52-week | ~4.10% |
Rates approximate as of March 2026, change weekly at Treasury auctions. Check TreasuryDirect.gov for current auction results.
The yield curve is relatively flat at these maturities, meaning you're not being significantly rewarded for locking up funds for 52 weeks versus 13 weeks. Most investors currently favor 13-week T-bills for the balance of liquidity and yield.
How to Buy Through TreasuryDirect
TreasuryDirect.gov is the U.S. Treasury's direct purchase platform. You pay no transaction fees, and there are no intermediaries. The minimum purchase is $100.
Step 1: Create a TreasuryDirect account
Go to TreasuryDirect.gov and click "Open an Account." You'll need your Social Security number, U.S. bank account and routing numbers, an email address, and a government-issued ID. The account verification process typically takes 3-5 business days the first time.
Step 2: Link your bank account
After account approval, link a checking or savings account for purchases and redemptions. TreasuryDirect uses ACH transfers, so funds move in 1-2 business days.
Step 3: Place a non-competitive bid
Non-competitive bidding means you accept whatever yield the Treasury auction sets — guaranteed fill at the market rate. Navigate to BuyDirect, select "Bills," choose your maturity, enter the face value amount (minimum $100, in $100 increments), and submit. New T-bill auctions happen weekly (4-week, 8-week, 13-week on Mondays; 26-week and 52-week on alternate Mondays).
Step 4: Set up auto-reinvestment
TreasuryDirect lets you schedule automatic reinvestment at maturity. Select "ScheduleRepeat" when placing your order to keep rolling the T-bill for up to two years. This removes the manual step of repurchasing each time.
How to Buy Through Your Brokerage
Fidelity, Schwab, and Vanguard all offer T-bill purchases in the secondary market. The process is similar across platforms:
- Navigate to Fixed Income or Bonds section
- Search for "Treasury Bills" or filter by security type
- Choose your desired maturity date
- Review the ask price and implied yield
- Place your order
Brokerage T-bills trade at slightly different prices than auction prices since they're in the secondary market. For small purchases, the difference is negligible. Fidelity and Schwab also offer "auto-roll" features that automatically reinvest at maturity, similar to TreasuryDirect's repeat scheduling.
One advantage of brokerages: T-bill holdings appear in your main investment dashboard alongside stocks and ETFs, making portfolio tracking simpler. TreasuryDirect has a separate login and older interface.
T-Bills vs High-Yield Savings Accounts
The state-tax exemption is what makes T-bills competitive with HYSAs even when the nominal yield looks slightly lower.
Worked comparison: $10,000 for one year
| T-Bill (52-week) | HYSA | |
|---|---|---|
| Yield | 4.10% | 4.50% |
| Gross interest | $410 | $450 |
| State tax (5% rate, e.g., Virginia) | $0 | $22.50 |
| Net after-tax income | $410 | $427.50 |
| Difference | — | +$17.50 |
In this example, the HYSA still wins slightly after state tax. But in high-tax states like California (13.3%) or New York (10.9%), the math flips:
- California: HYSA at 4.50% with 13.3% state tax = ~$390 net. T-bill at 4.10% = $410 net. T-bill wins by $20.
- New York City: With combined state+local tax over 12%, a 4.25% T-bill beats a 4.80% HYSA net.
If you live in a state with no income tax (Florida, Texas, Nevada, Washington), HYSAs and T-bills are comparable on an after-tax basis — the HYSA nominal rate becomes the deciding factor.
T-Bill Ladder Strategy
A T-bill ladder spreads purchases across multiple maturities so you have recurring liquidity without chasing rates. A simple 4-rung ladder on $40,000:
- $10,000 in 4-week T-bills (matures monthly, maximum flexibility)
- $10,000 in 13-week T-bills (matures quarterly)
- $10,000 in 26-week T-bills (matures every 6 months)
- $10,000 in 52-week T-bills (captures longer-term rate, currently ~4.10%)
When each rung matures, reinvest at the best available rate. If short-term rates rise, you benefit quickly on the 4-week rung. If rates fall, your 52-week position is locked in at the higher rate for the remainder of its term.
For larger amounts ($50,000+), add 8-week and 17-week T-bills to create a ladder with maturities almost every two weeks — effectively turning your T-bill portfolio into a high-yield checking account with near-zero credit risk.
Use the Treasury Bill Calculator below to model your specific ladder: enter face values, select maturities, and compare after-tax returns against your current savings account rate.
Treasury Bill Calculator
Calculate T-bill yields, returns, and compare maturities