You can buy government bonds directly from the U.S. Treasury or through a bank or brokerage firm
The most straightforward route is TreasuryDirect, a website run by the U.S. Department of the Treasury where you can buy Treasury bills, notes, and bonds without paying a broker fee. You open an account online, link a bank account, and place bids during auctions held on a regular schedule. The other main route is through a bank or brokerage — firms like Fidelity, Charles Schwab, Vanguard, and most traditional banks sell Treasuries and also handle the paperwork for you, though they may charge a small fee or require a minimum purchase.
Which route makes sense depends on how much you want to buy, how comfortable you are with a website interface, and whether you want a person to walk you through it. TreasuryDirect has no minimums and no fees, but it only sells new bonds at auction. A broker can sell you bonds that other investors are selling on the secondary market — meaning you can buy at any time, not just on auction days — but you will pay a markup or commission.
Key Takeaways
- TreasuryDirect is a free government website where you can buy new Treasury bonds directly, with no broker fees and no minimum purchase amount.
- Banks and brokerages sell both new Treasury bonds and bonds already owned by other investors, but they charge a fee or markup for the service.
- Treasury auctions happen on a fixed schedule — bills weekly, notes and bonds monthly — and you must bid during the auction window to buy through TreasuryDirect.
- Secondary market purchases through a broker let you buy at any time and choose from older bonds with different interest rates, but you pay more for that flexibility.
How to buy through TreasuryDirect
Start by going to treasurydirect.gov and creating an account. You will need a Social Security number, an email address, and a U.S. bank account to link for transfers. The site walks you through each step and stores your information securely.
Once your account is open, you can browse upcoming auctions. The Treasury publishes an auction calendar showing when each type of bond will be sold — Treasury bills (short-term, under one year), Treasury notes (two to ten years), and Treasury bonds (20 or 30 years). You place a bid during the auction window, which typically stays open for a few days. You can bid "noncompetitively," which means you accept whatever interest rate the auction sets, or "competitively," which means you name the price you are willing to pay (this is more complex and usually for larger investors).
After the auction closes, the Treasury settles the purchase and deposits the bond into your TreasuryDirect account. You can hold it until it matures and get your money back, or you can sell it on the secondary market through a broker if you need the cash before maturity.
Buying through a bank or brokerage
Most banks and investment firms offer Treasury sales as part of their regular services. You log into your account, navigate to the fixed-income or bonds section, and search for the Treasury bond you want. The process is similar to buying a stock — you see the price, the interest rate, and the maturity date, and you place an order.
The main advantage is timing and selection. You are not waiting for an auction; you can buy whenever you want. You can also choose from bonds that were issued years ago and have different interest rates, so you have more options. The trade-off is cost: brokers typically charge a commission (often $1 to $10 per bond) or build a small markup into the price you see.
Some brokers waive commissions on Treasury purchases to attract customers, so it is worth checking what your bank or brokerage charges before you buy. Call their customer service line or log into your account and search for their Treasury bond pricing page — most post their fees clearly.
Understanding auction schedules and bid types
If you use TreasuryDirect, you need to know when auctions happen. The Treasury holds auctions on a predictable schedule: Treasury bills are auctioned weekly (usually on Mondays), Treasury notes are auctioned monthly, and Treasury bonds are auctioned monthly. The exact dates are posted on treasurydirect.gov at the start of each month.
When you bid, you choose between two methods. A noncompetitive bid means you are saying "I will buy this bond at whatever interest rate wins the auction." This is the simpler choice for most people and almost always goes through. A competitive bid means you name the exact price or yield you are willing to accept. If your bid is too high (meaning you are offering too little money), it will not be accepted. Competitive bidding is usually for institutional investors or people buying large amounts.
The auction window typically closes at 11:00 a.m. Eastern time on the auction date. If you miss the important date, you have to wait for the next auction, which is why some people prefer buying through a broker — there is no important date to miss.
Comparing costs: TreasuryDirect versus brokers
TreasuryDirect has no fees and no minimums, which makes it the cheapest way to buy new Treasury bonds. You pay only the price of the bond itself. If you buy a $1,000 Treasury note at a 4% interest rate, you pay $1,000 and receive 4% interest — nothing more.
Brokers charge differently depending on the firm and the type of bond. Some charge a flat commission per bond ($1 to $10), some charge a percentage of the purchase price (usually 0.1% to 0.5%), and some build a markup into the price without showing it as a separate fee. A few large brokers, including Fidelity and Charles Schwab, have eliminated commissions on Treasury purchases to stay competitive. Before you open an account or place an order, ask what the total cost will be.
The secondary market (bonds being resold by other investors) also carries a bid-ask spread — the difference between what a seller wants and what a buyer will pay. This spread is usually small for Treasury bonds because they trade frequently, but it is another cost to keep in mind.
What happens after you buy
Once your bond is purchased, you own it. If you bought through TreasuryDirect, it sits in your account and you receive interest payments twice a year (for notes and bonds) or at maturity (for bills). When the bond matures, the Treasury deposits the full face value back into your linked bank account.
If you need to sell before maturity, you can do so through a broker. TreasuryDirect does not have a built-in resale tool, so you would have to transfer the bond to a brokerage account first, which takes a few days. Bonds bought through a broker are easier to sell because you can do it when ready through the same firm.
You will receive a 1099-INT form each year showing the interest you earned, which you report on your federal tax return. Treasury interest is subject to federal income tax but exempt from state and local income tax.
Frequently Asked Questions
Do I need a minimum amount of money to buy a Treasury bond?
TreasuryDirect has no minimum — you can buy a single $100 Treasury bill if you want. Most brokers also have no stated minimum for Treasury purchases, though some may require you to have a certain account balance or may charge a fee that makes very small purchases uneconomical.
Can I buy Treasury bonds for someone else, like a child?
Through TreasuryDirect, you can set up an account for a minor using their Social Security number, but you control the account as the parent or guardian. Some brokers allow custodial accounts for minors as well. You cannot buy a bond in someone else's name without their permission and involvement.
What is the difference between a Treasury bill, note, and bond?
Treasury bills mature in less than one year, Treasury notes mature in two to ten years, and Treasury bonds mature in 20 or 30 years. Longer-term bonds typically pay higher interest rates because you are lending the money for a longer time. All three are backed by the U.S. government and sold through the same channels.
If I buy a bond and interest rates go up, what happens to my bond's value?
If you hold the bond until maturity, you get your full purchase price back regardless of what interest rates do. If you sell before maturity, the bond's market value will have dropped because new bonds are now paying higher interest. This is why holding to maturity is simpler — you do not have to worry about market price changes.
Can I lose money on a Treasury bond?
If you hold to maturity, you cannot lose money — the Treasury will pay you back in full. If you sell before maturity when interest rates have risen, you will receive less than you paid. The U.S. government has never defaulted on its debt, so the credit risk is essentially zero.