How to Buy T Bills on Fidelity: Step-by-Step Guide, Yields & Fees
Fidelity allows investors to buy U.S. Treasury bills through Treasury auctions and the secondary market.
T-bills available through Fidelity range from four weeks to 52 weeks in maturity, with a $1,000 face-value denomination per bill.
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What Are T-Bills?
Treasury bills are the shortest-term U.S. government debt.
They mature in one year or less and pay interest only at maturity.
Investors buy T-bills below face value and receive the full face amount at maturity.
Imagine you buy a $1,000 T-bill that matures in 6 months.
You don’t pay the full $1,000 today. Instead, suppose you pay $975.
- Today: You pay $975
- For the next 6 months: You simply hold the T-bill.
- After 6 months: The U.S. government pays you $1,000.
So:
$1,000 − $975 = $25
Your $25 profit is the interest you earned.
The important thing is that you don’t receive $25 every month. You receive the entire $1,000 at maturity.
In simple terms:
You pay $975 today → wait 6 months → receive $1,000 → earn $25.
Auction Process for T-Bills Vs Secondary Market Purchases
The U.S. Treasury auctions new T-bills on a fixed schedule and announces auction details a few days prior.
- Investors submit bids in a Dutch auction.
- Alternatively, T-bills can be bought on the secondary market through Fidelity, which trades existing Treasury securities when the bond market is open.
| New-Issue Auction | Secondary Market | |
|---|---|---|
| What you buy | Newly issued T-bill | Existing T-bill |
| When you buy | During a scheduled Treasury auction | When the bill is available for trading |
| How price is set | Treasury auction | Current market price |
| What retail investors do | Submit a noncompetitive order | Place a buy order at the quoted price |
| Yield | You accept the auction-determined rate | You know the market price/yield before buying |
| Maturity choices | Limited to bills being auctioned | Choose from available outstanding bills |
| Flexibility | Lower — must wait for an auction | Higher — buy when you want |
| Price | Auction-cleared price | May be below, at, or above par |
| Best for | T-bill ladders and simple buy-and-hold investing | Specific maturities or off-cycle purchases |
| Main trade-off | Final yield isn’t known when you place the order | Market price may include a bid/ask spread |
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How to Buy T-Bills on Fidelity: Step-by-Step
Via Auctions (New Issue)
Here’s exactly how the process works.
Step 1. Log In to Fidelity
Sign in to your Fidelity account at Fidelity.com.
Once you’re on the home page, go to:
- News & Research
- Fixed Income, Bonds & CDs
That takes you to Fidelity’s fixed-income research area, where you can browse Treasury securities and other fixed-income investments.
Step 2. Find the New-Issue Treasury Auctions
Next, look for the New Issues tab where Fidelity lists newly issued fixed-income securities.
You can also go through the Bonds tab and select Auction/TIPS to find upcoming Treasury auctions.
Now you’re looking for the T-bill you want based on a few key details:
- Maturity period
- Maturity date
- Auction date
T-bills are generally listed before their scheduled auction, so you have time to decide how much you want to purchase.
Step 3. Select the T-Bill You Want to Buy
Found the T-bill you want?
Select its Description or Trade link.
This opens the security details, where you can review the Treasury bill before you commit to the purchase.
I’d pay particular attention to two things:
- Maturity date and
- Estimated yield.
The maturity date tells you when the T-bill is scheduled to mature. The estimated yield gives you an idea of what the investment may earn.
Step 4. Open the Trade Ticket
Click Buy or Trade from the T-bill’s details page.
Fidelity will open the fixed-income trade ticket with the Treasury issue you selected already filled in.
Step 5. Select Your Fidelity Account
Now choose the Fidelity account you want to use.
Depending on your situation, this could be:
- Individual brokerage account
- Joint brokerage account
- Traditional IRA
- Roth IRA
- Another eligible Fidelity account
Make sure the account has enough available funds for the purchase.
Step 6. Enter the Quantity
Enter the number of T-bills in the Quantity field.
For Treasury auctions, 1 T-bill represents $1,000 of face value.
So:
- 1 = $1,000 face value
- 5 = $5,000 face value
- 10 = $10,000 face value
- 25 = $25,000 face value
Step 7. Preview Your Order
Click Preview Order and take a few seconds to review the details.
I’d check:
- Treasury bill maturity date
- Quantity
- Face value
- Selected Fidelity account
- Estimated yield
- Estimated purchase amount
- Auto Roll setting, if applicable
Step 8. Place the Order
Go ahead and click Place Order.
That submits your T-bill auction order to Fidelity.
Fidelity then submits the order for the upcoming Treasury auction on your behalf.
For online Treasury auction orders placed through Fidelity.com, the orders are generally free of charge.
And that’s it.
You’ve submitted your order for a new-issue T-bill.
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Via Secondary Market
- Search for Bonds: On Fixed Income, Bonds & CDs, use Find Bonds & CDs or the Bonds tab.
- Review Listing: The search results will show available Treasury bills. Choose an offering and click Trade/Buy.
- Enter Order: In the trade window, set Quantity and order type. You may enter a Limit Price or limit yield.
- Submit Order: Confirm the details and click Preview Order, then Place Order. If a limit order, wait for execution. Settlement will occur on T+1.
(Note: Fidelity’s mobile app does not support bond trades; use a web browser on desktop or mobile.)
How Much Do T-Bills Cost on Fidelity
At Fidelity, Treasury bills have a minimum purchase of one bill, equal to $1,000 in face value, with additional purchases in $1,000 increments.
| T-Bills Bought | Investment / Face Value | Approx. Cost* | You Receive at Maturity | Approx. Profit* |
|---|---|---|---|---|
| 1 | $1,000 | ~$970–$990 | $1,000 | ~$10–$30 |
| 5 | $5,000 | ~$4,850–$4,950 | $5,000 | ~$50–$150 |
| 10 | $10,000 | ~$9,700–$9,900 | $10,000 | ~$100–$300 |
| 20 | $20,000 | ~$19,400–$19,800 | $20,000 | ~$200–$600 |
| 50 | $50,000 | ~$48,500–$49,500 | $50,000 | ~$500–$1,500 |
T-bills are sold at a discount, so the amount you pay can be less than the $1,000 face value; at maturity, you receive the full face value.
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Treasury Bill Auctions at Fidelity FAQ
Yes, Fidelity charges no extra fee on new-issue Treasuries, so your auction yield and price will match the official Treasury auction results.
No, the minimum purchase is $1,000 in par value, with additional purchases in $1,000 increments.
The U.S. Treasury publishes an auction schedule, and Fidelity lists upcoming auctions a few days in advance.
No, T-bills do not pay periodic interest, so there is no accrued interest to pay; you buy them at a discount and receive the full par value at maturity.
If you earn at least $10 of interest from T-bills in a taxable Fidelity account, Fidelity will generally send you Form 1099-INT, with Treasury interest reported in Box 3.
Yes, T-bills are backed by the U.S. government and have virtually no credit or default risk, although their value can fluctuate if you sell before maturity.
Your purchase settles on the Treasury’s designated issue date, which Fidelity shows in the auction details; secondary-market trades generally settle on the next business day (T+1).
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