Key Takeaways

• Treasury securities are backed by the U.S. government — the safest investment in existence
• Buy directly at TreasuryDirect.gov with zero fees — no broker, no middleman
• Current yields (March 2026): 3-month T-bills ~4.35%, 1-year ~4.30%, 10-year notes ~4.60%
• Treasury interest is exempt from state and local income taxes — a real advantage for residents of high-tax states
• I-bonds are capped at $10,000/year; current composite rate ~1.9%
• For brokerage account access to Treasuries: SGOV and BIL ETFs provide T-bill exposure with daily liquidity

Overview: Types of Treasury Securities

Yields as of mid-March 2026. Treasury yields change daily with market conditions.

How to Buy at TreasuryDirect.gov

Step 1: Create a TreasuryDirect Account

Go to TreasuryDirect.gov → “Open an Account” → “TreasuryDirect”

You’ll need:

• Social Security Number
• U.S. mailing address
• Email address
• Bank account routing and account number
• Driver’s license or state ID for identity verification

Account creation takes 10–15 minutes. You’ll receive a TreasuryDirect account number by email — save this, as you’ll need it to log in.

Step 2: Link Your Bank Account

TreasuryDirect uses ACH bank transfers. Your bank account is your funding source and the destination for interest payments and proceeds at maturity. ACH transfers typically take 1–2 business days to process.

Step 3: Navigate to “BuyDirect”

Once logged in: click BuyDirect in the top navigation. Select the security type:

• Bills — for T-bills (4 weeks to 52 weeks)
• Notes — for 2–10 year securities
• Bonds — for 20–30 year securities
• TIPS — for inflation-protected
• I Bonds — for inflation savings bonds

Step 4: Enter Purchase Details

• Purchase amount: Minimum $100; increments of $100
• Term: Select the maturity period you want
• Auction date: Treasury securities are sold at scheduled auctions. You submit a “noncompetitive bid” — this guarantees you receive the security at whatever rate the auction determines (the market rate)
• Reinvestment: You can set T-bills to automatically reinvest at maturity — useful for ongoing cash management

Step 5: Confirm and Submit

After the auction closes (typically within a few business days), funds are debited from your bank account and your security appears in your TreasuryDirect account. At maturity, proceeds are automatically deposited back to your bank account.

T-Bills: The Most Popular for Cash Management

Treasury bills are the shortest-term Treasuries (4 weeks to 52 weeks). They’re sold at a discount to face value — you pay slightly less than $10,000 for a $10,000 T-bill and receive the full $10,000 at maturity. The difference is your interest.

Current 2026 T-bill rates:

• 4-week: ~4.25%
• 13-week (3-month): ~4.35%
• 26-week (6-month): ~4.40%
• 52-week (1-year): ~4.30%

T-Bills vs. HYSA: The State Tax Advantage

Treasury interest is exempt from state and local income taxes. This matters significantly in high-tax states:

In high-tax states, T-bills at 4.35% can actually yield more after-tax than a HYSA at 4.75%. In no-income-tax states, HYSAs win. Know your state’s rate and compare.

I-Bonds: Inflation-Protected Savings Bonds

I-bonds earn interest based on a fixed rate plus the current inflation rate (CPI-U), adjusted every 6 months in May and November.

Current composite rate: Approximately 1.9% (November 2025 announcement, valid through April 2026)

Key I-bond rules:

• Annual purchase limit: $10,000 electronic per person per year; additional $5,000 via tax refund (paper bonds)
• Minimum hold: 1 year — you cannot redeem before this
• Early redemption penalty: Forfeit 3 months of interest if redeemed before 5 years
• Tax: Federal income tax applies (can defer to redemption); state and local tax exempt
• Maximum return: No cap on the upper end — when inflation spiked in 2022, I-bonds paid 9.62%

When inflation is high (2022: 9.62% I-bond rate), I-bonds are exceptional. In a moderate inflation environment (2026: ~1.9%), they’re competitive with T-bills but not dramatically superior.

Treasury ETFs: Brokerage Alternative

If you prefer to buy Treasuries through your regular brokerage account rather than TreasuryDirect:

Trade-off vs. TreasuryDirect: ETFs have small expense ratios (0.09–0.15%); TreasuryDirect is free. For large amounts held long-term, TreasuryDirect saves more. For small amounts or those who want simplicity within a brokerage account, Treasury ETFs are a great option.

FAQ

What’s the minimum investment in Treasury securities? $100, in $100 increments. A 52-week T-bill at $100 face value costs approximately $96 at current rates and returns $100 at maturity.

Can I buy Treasuries inside my IRA? Yes — you can hold Treasuries inside an IRA through TreasuryDirect (limited) or more easily through Treasury ETFs (SGOV, BIL, SHY) in your IRA at any brokerage. The state tax exemption doesn’t apply inside an IRA, but the safety and yield still make sense.

What happens if I need my money before a T-bill matures? Through TreasuryDirect, you can sell your Treasury securities on the secondary market before maturity, but this requires submitting a transfer request and the proceeds depend on current market prices (you may receive slightly more or less than face value depending on how rates have moved). Treasury ETFs solve this by providing daily liquidity at current market prices.

Are I-bonds still worth buying in 2026? At a 1.9% current rate, I-bonds are less compelling than in 2022 (9.62%) or early 2023 (6.89%). They’re still worth the $10,000 annual maximum for: risk-averse savers who want government backing + inflation protection + tax deferral flexibility. They’re not the right choice if you need liquidity within a year.

Sources

1. TreasuryDirect. TreasuryDirect.gov. Current rates and purchase interface.
2. U.S. Treasury. Treasury Securities & Programs. Current yield data.
3. IRS. Interest income from Treasury securities. State tax exemption.
4. Bankrate. Best Treasury bond investments. March 2026.

Related Articles:

• Best High-Yield Savings Accounts 2026
• Best CD Rates 2026
• Best Investments 2026
• Capital Gains Tax 2026
• Roth IRA Contribution Limits 2026

Source: TreasuryDirect.gov; U.S. Treasury. Last verified: March 2026.

How This Fits Into Your Overall Financial Plan

Building wealth requires a deliberate order of operations. Before diving into any specific investment strategy, ensure:

1. Emergency fund: 3–6 months of expenses in a high-yield savings account earning 4.75–5.10%. Never invest money you might need in the next 12 months.

2. Employer 401(k) match: Always contribute enough to capture your full employer match before any other investing. A 50% match is a guaranteed 50% return — no investment beats it.

3. Tax-advantaged accounts first: Max your Roth IRA ($7,000 in 2026) before putting additional money in taxable accounts. See Roth IRA Contribution Limits 2026.

4. Low-cost, diversified index funds: The evidence is overwhelming that low-cost passive index funds outperform most actively managed alternatives over long periods. Keep fees below 0.10% annually.

The simplest complete portfolio: One total market index fund (VTI or FZROX) in a Roth IRA, automatic monthly contributions, held for decades. Everything else is optional enhancement.

Sources

1. Vanguard Investment Research. [The case for low-cost index funds]. Vanguard.com.
2. SPIVA. [S&P Indices Versus Active Funds Scorecard]. S&P Global, 2025.
3. IRS. Retirement Plans. IRS.gov.
4. Fidelity. Investment research and tools. Fidelity.com.

Last verified: March 2026.