Selling Treasury Bills — TreasuryDirect (2024)

FAQs

Selling Treasury Bills — TreasuryDirect? ›

You can hold Treasury bills until they mature or sell them before they mature. To sell a bill you hold in TreasuryDirect or Legacy TreasuryDirect, first transfer the bill to a bank, broker, or dealer, then ask the bank, broker, or dealer to sell the bill for you.

You can sell a T-Bill before its maturity date without penalty, although you will be charged a commission. (With CDs, you pay a sizeable penalty for early withdrawals.)

You can hold a bill until it matures or sell it before it matures. Note about Cash Management Bills: We also sell Cash Management Bills (CMBs) at various times and for variable terms.

Electronic I bonds can be cashed online through TreasuryDirect.gov. Paper I bonds can be cashed online, or they may be accepted by some banks. If you hold an I bond for less than five years, you'll lose three months' interest.

Go to your TreasuryDirect account. Choose the Manage Direct tab. Identify the security or securities you want to transfer. Choose External Transfer.

Bills are sold at a discount. The discount rate is determined at auction. Bills pay interest only at maturity. The interest is equal to the face value minus the purchase price.

You can hold Treasury bills until they mature or sell them before they mature. To sell a bill you hold in TreasuryDirect or Legacy TreasuryDirect, first transfer the bill to a bank, broker, or dealer, then ask the bank, broker, or dealer to sell the bill for you.

Are Treasury bills taxed as capital gains? Normally no. However, if you buy a T-bill in the secondary market and then achieve a profit, you may be liable for capital gains depending on your exact purchase price.

To calculate the price, take 180 days and multiply by 1.5 to get 270. Then, divide by 360 to get 0.75, and subtract 100 minus 0.75. The answer is 99.25. Because you're buying a $1,000 Treasury bill instead of one for $100, multiply 99.25 by 10 to get the final price of $992.50.

3 Month Treasury Bill Rate (I:3MTBRNK)

3 Month Treasury Bill Rate is at 5.26%, compared to 5.26% the previous market day and 5.16% last year. This is higher than the long term average of 4.19%.

How do I sell Treasuries on TreasuryDirect? ›

You cannot sell a Treasury marketable security directly from your TreasuryDirect account. To sell a Treasury marketable security that is in your TreasuryDirect account, you must transfer the security to a broker/dealer account. The broker/dealer can sell the security for you.

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.

You can hold a bond until it matures or sell it before it matures. EE Bonds, I Bonds, and HH Bonds are U.S. savings bonds. For information, see U.S. Savings Bonds.

Bonds and stocks are settled within two business days, whereas Treasury bills and bonds are settled within the next business day. Where the period between the transaction date and the settlement date falls on a holiday or weekend, the waiting period can increase substantially.

How do I cash my electronic bonds? Go to your TreasuryDirect account. Go to ManageDirect. Use the link for cashing securities.

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.

The No. 1 advantage that T-bills offer relative to other investments is the fact that there's virtually zero risk that you'll lose your initial investment. The government backs these securities so there's much less need to worry that you could lose money in the deal compared to other investments.

Treasury securities are considered a safe and secure investment option because the full faith and credit of the U.S. government guarantees that interest and principal payments will be paid on time. Also, most Treasury securities are liquid, which means they can easily be sold for cash.