How to buy Treasury bills on Fidelity

You can buy Treasury bills directly through your Fidelity brokerage account using the platform's bond trading tools. Treasury bills are short-term U.S. government debt that mature in four weeks to one year, and Fidelity lets you purchase them the same way you would buy stocks or mutual funds — through the website, mobile app, or by calling a representative.

The process starts with logging into your Fidelity account and navigating to the Fixed Income or Bonds section. From there, you search for Treasury bills by their maturity date or CUSIP number, review the current bid and ask prices, and place an order just as you would for any other security. Settlement happens in one business day, and your Treasury bills appear in your account holdings.

Key Takeaways

  • Treasury bills are purchased through Fidelity's Fixed Income section using the same order process as stocks, and you need a funded brokerage account to begin.
  • You can search Treasury bills by maturity date (4 weeks to 1 year) and see real-time pricing before you commit to a purchase.
  • Fidelity charges no commission on Treasury bill trades, though the bid-ask spread (the difference between buy and sell prices) is your actual cost.
  • Your Treasury bills settle in one business day and are held in your account until maturity, when the U.S. Treasury pays you the full face value.

Setting up your Fidelity account for Treasury bill purchases

Before you can buy Treasury bills, you need an active Fidelity brokerage account with cash or settled funds available. If you already have a Fidelity account for stocks or mutual funds, you can use that same account — no separate setup is required. If you are new to Fidelity, you will need to open a brokerage account, which takes about 10 minutes online and requires your Social Security number, address, and employment information.

Once your account is open and funded, make sure you have enough cash on hand to cover the purchase. Treasury bills are sold in $100 increments, so you might buy $10,000, $25,000, or any multiple of $100 up to your account balance. Fidelity does not require a minimum purchase amount, though some Treasury bill offerings may have their own minimums set by the auction or secondary market.

Finding and selecting Treasury bills in Fidelity

Log into your Fidelity account and navigate to the Fixed Income section, usually found under Investments or Accounts. Click on Bonds or Fixed Income Trading, then select Treasury Bills from the menu. You will see a list of available Treasury bills sorted by maturity date, yield, and price.

Each Treasury bill listing shows the maturity date, current bid price (what you would receive if you sold right now), ask price (what you would pay to buy right now), and the yield to maturity. The yield tells you the annual return you would earn if you held the bill until it matures. For example, a 13-week Treasury bill maturing in three months might show a yield of 4.5 percent. Compare the maturity dates and yields to find the bill that matches your timeline and return expectations.

Placing your Treasury bill order

Once you have selected a Treasury bill, click on it to open the order ticket. Enter the quantity you want to purchase — remember that Treasury bills are sold in $100 increments, so you might enter 100 to buy $10,000 worth. Fidelity will show you the total cost based on the current ask price.

Review the order details carefully: the maturity date, the ask price, the total dollar amount you will spend, and the yield. Then submit the order. During market hours (Monday through Friday, 8 a.m. to 5 p.m. Eastern time), your order executes when ready at the displayed price. If you place an order outside market hours, it will execute when the market opens the next business day.

Understanding Treasury bill pricing and costs

Treasury bills are quoted as a percentage of their face value, not as a dollar price. A Treasury bill with a face value of $10,000 might be quoted at 98.5, meaning you pay $9,850 to buy it. When the bill matures, the U.S. Treasury pays you the full $10,000 face value, and your profit is the $150 difference.

Fidelity charges no commission on Treasury bill trades, but you do pay a cost in the form of the bid-ask spread — the difference between what buyers are willing to pay (bid) and what sellers are asking (ask). On a $10,000 Treasury bill, this spread might be $10 to $25, depending on market conditions and the specific bill. This spread is built into the price you see on the order ticket, so there are no hidden fees.

What happens after your Treasury bill purchase

Your Treasury bill settles in one business day, meaning the cash leaves your account and the bill appears in your holdings. You can see it listed under Fixed Income or Bonds in your account. Fidelity tracks the maturity date and shows you how many days remain until the bill matures.

You do not need to do anything else — the U.S. Treasury automatically pays the face value to your Fidelity account on the maturity date. The cash appears as a deposit and is available to spend, reinvest, or leave sitting in your account. If you want to sell the Treasury bill before it matures, you can do so through the same Fixed Income trading section, though you will receive whatever the current market price is at that time, which may be higher or lower than what you paid.

Buying Treasury bills directly from the U.S. Treasury versus through Fidelity

You have two ways to buy Treasury bills: through Fidelity or directly from the U.S. Treasury via TreasuryDirect.gov. Buying through Fidelity is faster and more flexible — you can purchase any Treasury bill currently trading on the secondary market at any time during market hours, and you can sell before maturity if you need the cash.

Buying directly from TreasuryDirect requires you to participate in a Treasury auction, which happens on a set schedule (typically weekly for 4-week and 13-week bills). You place a bid before the auction closes, and if your bid is accepted, you own the bill until maturity. TreasuryDirect has no trading costs and no bid-ask spread, but you cannot sell before maturity and you cannot buy outside the auction schedule. For most Fidelity account holders, buying through Fidelity is more convenient.

Frequently Asked Questions

Do I need a minimum amount of money to buy Treasury bills on Fidelity?

Fidelity has no stated minimum for Treasury bill purchases — you can buy as little as $100 worth. However, individual Treasury bill offerings may have their own minimums, and you need enough cash in your account to cover the purchase price. Most Treasury bills trade in amounts of $1,000 or more on the secondary market.

Can I sell a Treasury bill before it matures?

Yes. You can sell any Treasury bill you own through Fidelity's Fixed Income trading section at any time during market hours. You will receive the current market price, which may be higher or lower than what you paid. If you sell before maturity and the price has fallen, you will realize a loss.

What is the difference between a Treasury bill and a Treasury note?

Treasury bills mature in one year or less, while Treasury notes mature in 2 to 10 years. Bills are considered safer because they mature sooner, but they typically pay lower yields. Both are backed by the U.S. government and can be bought and sold through Fidelity the same way.

How do I know what yield I will earn on a Treasury bill?

The yield to maturity is displayed on the Treasury bill listing in Fidelity before you buy. This is the annualized return you would earn if you held the bill until it matures. For a short-term bill, the actual dollar gain is smaller than the annualized percentage suggests — a 4-week bill with a 5 percent yield earns roughly 0.4 percent in that single week.

What happens if I do not sell my Treasury bill before it matures?

The U.S. Treasury automatically deposits the face value into your Fidelity account on the maturity date. You do not need to take any action. The cash is then available in your account to spend, reinvest, or hold.