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Who sells T-bills?
You should buy Treasury payments instantly from the federal government at TreasuryDirect.gov, or by way of a brokerage or checking account. T-bills are solely accessible in digital kind.
Some on-line brokers let you buy particular person T-bills, and a few provide Treasury accounts, which do the work of buying T-bills for you, holding them to maturity, after which reinvesting the earnings.
How do I get began?
Whether or not you purchase your T-bills from TreasuryDirect or from a monetary establishment, you’ll have to arrange an account, and hyperlink your financial institution for fee.
Then, determine which maturity of T-bill you wish to purchase.
The federal government sells T-bills that mature in 4, six, eight, 13, 17, 26 or 52 weeks. Brokers might provide all of those maturity lengths, or solely choose phrases.
T-bills are sometimes offered at a reduction to their face worth, and this low cost determines the yield you’ll earn by holding a invoice to maturity. For instance, in the event you purchased a four-week, $100 Treasury invoice at a reduction, you’d pay the discounted value, then get the complete $100 on the finish of the 4 weeks.
TreasuryDirect.gov sells Treasury payments on-line at public sale, and a minimal bid of $100 is required. Brokerages might ask for larger or decrease minimums, relying on the account.
T-bills are thought of a comparatively secure short-term funding as a result of they’re backed by the U.S. authorities, and assured to pay out when held for the complete time period.
You can even spend money on T-bills not directly by way of Treasury ETFs or mutual funds.