How much is a one year Treasury bill paying today?
1 Year Treasury Rate is at 5.00%, compared to 5.02% the previous market day and 5.03% last year. This is higher than the long term average of 2.94%.
Basic Info. 3 Month Treasury Bill Rate is at 5.23%, compared to 5.24% the previous market day and 4.66% last year. This is higher than the long term average of 4.19%. The 3 Month Treasury Bill Rate is the yield received for investing in a government issued treasury security that has a maturity of 3 months.
| Bonds | Yield | Day |
|---|---|---|
| US 52W | 5.01 | -0.012% |
| US 2Y | 4.69 | -0.022% |
| US 3Y | 4.45 | -0.030% |
| US 5Y | 4.28 | -0.048% |
T-Bill Redemptions and Interest Earned
T-bills are issued at a discount from the par value (also known as the face value) of the bill, meaning the purchase price is less than the face value of the bill. So, for example, a $1,000 bill might cost the investor $950.
Currently, Treasuries maturing in less than a year yield about the same as a CD. Therefore, all things considered, it likely makes more sense to choose Treasuries over CDs, depending on your situation, because of the tax benefits and liquidity when considering very short-term maturities.
You can purchase T-bills through TreasuryDirect for as little as $100 or buy them on the secondary market through your broker. Many online brokers don't charge fees for buying T-bills.
4 Week Treasury Bill Rate is at 5.28%, compared to 5.28% the previous market day and 4.49% last year. This is higher than the long term average of 1.37%. The 4 Week Treasury Bill Rate is the yield received for investing in a US government issued treasury bill that has a maturity of 4 weeks.
You can only buy T-bills in electronic form, either from a brokerage firm or directly from the government at TreasuryDirect.gov. (You can also buy Series I savings bonds through TreasuryDirect.gov.)
T-bonds typically mature in 20 or 30 years and offer the highest coupons or interest, which are paid twice yearly. T-notes mature from two to 10 years, with semiannual interest payments but usually lower yields than T-bonds. T-bills have the shortest periods before maturity, from four weeks to a year.
They are sold at a discount to face value, and the difference between the discounted price and face value is your return on investment. For example, if you buy a 12-week T-bill with a face value of $10,000 for $9,800, the difference of $200 is your return for holding the security for 12 weeks.
Can I buy a T-bill at a bank?
You can buy (bid for) Treasury marketable securities through: your TreasuryDirect account — non-competitive bids only. a bank, broker, or dealer — competitive and non-competitive bids.
The minimum amount that you can purchase of any given Treasury Bill, Note, Bond, TIPS, or FRNs is $100.
| Last Value | 4.69% |
|---|---|
| Latest Period | Feb 22 2024 |
| Last Updated | Feb 22 2024, 18:00 EST |
| Next Release | Feb 23 2024, 18:00 EST |
| Long Term Average | 3.20% |
T-bills are sold via auction, so investors need to place a bid. A competitive bidder specifies the desired rate or yield, while a noncompetitive bidder accepts the going rate established in the auction.
Interest income from Treasury bills, notes and bonds - This interest is subject to federal income tax, but is exempt from all state and local income taxes.
Drawbacks of Investing in Treasury Bills
The biggest downside of investing in T-bills is that you're going to get a lower rate of return compared to other investments, such as certificates of deposit, money market funds, corporate bonds or stocks.
Treasury bills are backed by the full faith and credit of the U.S. government. If held to maturity, T-bills are considered virtually risk-free.
The only interest payment to you occurs when your bill matures. At that time, you are paid the par amount (also called face value) of the bill. (Bills are typically sold at a discount from the par amount, and the difference between the purchase price and the par amount is your interest.)
Buying Treasury Bills Through the Money Market
Such funds typically have low fees and low yields limited by rates on the shortest-term Treasury bills.
Taxes: Treasury bills are exempt from state and local taxes but still subject to federal income taxes. That makes them less attractive holdings for taxable accounts. Investors in higher tax brackets might want to consider short-term municipal securities instead.
Do banks charge for selling Treasury bills?
When you buy T-bills through your bank, it may charge you additional fees and expenses such as sales commissions or transaction charges. These extra costs can add up over time and eat into your returns on your investment.
| Face Value | Purchase Amount | 30-Year Value (Purchased May 1990) |
|---|---|---|
| $50 Bond | $100 | $207.36 |
| $100 Bond | $200 | $414.72 |
| $500 Bond | $400 | $1,036.80 |
| $1,000 Bond | $800 | $2,073.60 |
1 Month Treasury Rate is at 5.49%, compared to 5.49% the previous market day and 4.66% last year. This is higher than the long term average of 1.41%. The 1 Month Treasury Rate is the yield received for investing in a US government issued treasury bill that has a maturity of 1 month.
A Treasury Bill or T-Bill is a debt obligation issued by the U.S. Department of the Treasury. Of the debt issued by the U.S. government, the T-Bill has the shortest maturity, ranging from a few days to one year. T-Bills are typically sold at a discount to par value (also known as face value).
If you're looking for a short-term investment with low risk, Treasury bills are a great choice. However, if you're looking for a longer-term investment that yields semiannual income with a consistent interest rate, buying Treasury bonds is likely the better choice.
