Treasury Bills: Rates & Terms
Treasury bills are offered in multiples of $100 and in terms ranging from a few days to 26 weeks.
Price and Interest
Bills are sold at a discount from their face value. The price of a bill is determined at auction.
For example, a $10,000 bill may be sold at issue for $9,900. You would pay $9,900 for the bill at purchase and you would get $10,000 when the bill matures. The difference of $100 is your interest. Unlike Treasury Notes, Treasury Bonds, and Treasury Inflation-Protected Securities [TIPS], bills don't pay interest every six months.
Options at Maturity - and Before
You can hold a bill until it matures or sell it before it matures.
If you don't sell, here are your options at maturity:
- TreasuryDirect. Redeem the bill or use its principal to buy another security.
- Legacy Treasury Direct. Redeem the bill or reinvest its principal into another bill.
- Bank or Broker. For your options, consult your bank or broker.
Auction Pattern
Cash Management Bill - Variable
4-Week Bill - Weekly
13-Week Bill - Weekly
26-Week Bill - Weekly
