🎯 In 30 seconds: There are two doors. TreasuryDirect is the government’s own site: free, auctions only, and you cannot sell there. A brokerage lets you buy at auction or from other investors and sell any trading day. I bonds are the exception: they are sold only electronically through TreasuryDirect.
TreasuryDirect vs a brokerage
| TreasuryDirect | Brokerage | |
|---|---|---|
| Buying | New issues at auction, non-competitive bids only | Auctions, plus existing Treasuries on the secondary market |
| Selling early | Not possible inside; transfer to a broker first (after a 45-day hold) | Sell any trading day at market price |
| I bonds and EE bonds | Yes, the only place | No |
| Minimum | $100, in $100 steps | Varies by firm; check before you order |
| Auto-rolling bills | Yes, “reinvestment” | Many firms offer it |
How auctions work
The Treasury sells new bills, notes and bonds at auction. You bid one of two ways:
- Non-competitive: you agree to accept whatever rate the auction sets and are guaranteed the amount you ask for, up to $10 million per auction. This is how individuals usually buy, and the only option at TreasuryDirect.
- Competitive: you name the lowest yield you will accept. You might get all, part or none. It requires a bank, broker or dealer.
Bills come in 4, 6, 8, 13, 17, 26 and 52-week terms. The shorter ones are auctioned every week, and the 52-week bill every four weeks.
Worked example. A bill is sold at a discount. If a 26-week bill with a $1,000 face value sells for $980, you pay $980 and receive $1,000 at maturity. The $20 difference is your interest.
Rolling T-bills
Rolling means using the money from a maturing bill to buy the next one of the same term automatically. In TreasuryDirect you choose a number of reinvestments when you buy. At a brokerage, look for an “auto-roll” option on the order. Each new bill earns whatever the next auction sets, so a rolled bill behaves like a savings account whose rate resets at every maturity.
Step by step
At TreasuryDirect:
- Open an account at treasurydirect.gov with your Social Security number and a linked bank account.
- Choose BuyDirect, then the security type and term.
- Enter the amount and, for bills, the number of reinvestments.
- The money leaves your bank on the issue date; interest or face value arrives in your linked account.
At a brokerage: open the bond or fixed-income section, choose a new-issue auction or an existing Treasury, check the yield and maturity date, and place the order. Ask the firm about any fees or markups on secondary-market trades.
I bonds: TreasuryDirect only. As of 2025 they are sold only electronically, with a limit of $10,000 per Social Security number per calendar year and a $25 minimum. They cannot be cashed for 12 months. Current rates are on Today’s Rates.
The state-tax exemption
Interest on Treasury bills, notes and bonds is taxed federally but is exempt from state and local income tax. Savings bond interest is also state-tax-free. In a state with an income tax, that can make a Treasury beat a CD with a higher quoted rate. The CD vs Treasury table on Today’s Rates lets you enter your state rate.