TreasuryDirect Guide 2026: Buy I-Bonds, T-Bills & More

What Is TreasuryDirect?

TreasuryDirect.gov is the U.S. government's official platform for buying Treasury securities directly. No broker needed. No commissions. No middlemen. You buy directly from the U.S. Treasury.

What You Can Buy

Security	Duration	Interest Type	Annual Limit
I-Bonds	30 years	Inflation-adjusted	$10,000 (electronic)
EE Bonds	30 years	Fixed rate	$10,000
T-Bills	4-52 weeks	Discount	No limit
T-Notes	2-10 years	Semi-annual coupon	No limit
T-Bonds	20-30 years	Semi-annual coupon	No limit
TIPS	5-30 years	Inflation-adjusted	No limit
FRNs	2 years	Floating rate	No limit

Why Use TreasuryDirect?

Only Way to Buy I-Bonds: Can't buy through brokers
No Fees: Zero commissions, no account fees
Direct Ownership: Held in your name at Treasury
Automatic Reinvestment: Set up recurring purchases
Government Guarantee: Backed by full faith of U.S.

TreasuryDirect Limitations

Website is dated and clunky
Can't sell before maturity (must transfer to broker first)
Limited customer support
Two-factor authentication is cumbersome
Account recovery can be difficult

I-Bonds: Inflation Protection

I-Bonds are the star attraction of TreasuryDirect. They're the only retail product that fully protects against inflation with no risk of loss.

How I-Bonds Work

The I-Bond rate combines two components:

Component	Current Rate	How Set
Fixed Rate	1.30%	Set at purchase, never changes
Inflation Rate	2.96%	Adjusts every 6 months with CPI
Composite Rate	4.28%	Fixed + Inflation (roughly)

The composite rate changes every 6 months for each bond, but your fixed rate is locked forever.

I-Bond Purchase Limits

Type	Annual Limit	Notes
Electronic (TreasuryDirect)	$10,000	Per SSN per calendar year
Paper (tax refund)	$5,000	Must use Form 8888
Gift Purchases	$10,000	Held until delivered
Business Entity	$10,000	Separate from personal
Trust	$10,000	If different EIN

Strategies to Buy More Than $10K

Spouse: $10K each = $20K per household
Paper Bonds: Extra $5K via tax refund
Business: If you have an LLC or sole prop
Trust: If you have a living trust with EIN
Gifts: Buy for family members
Maximum Family: $25K+ per year is achievable

I-Bond Holding Period

Time Held	Can Redeem?	Penalty
0-12 months	No	Cannot redeem
1-5 years	Yes	Lose last 3 months interest
5+ years	Yes	No penalty

When I-Bonds Make Sense

Emergency fund earning inflation-protected yield
Money needed in 1-5 years
Conservative portion of portfolio
Tax-advantaged education savings
Retirees wanting safe income

Treasury Bills (T-Bills)

T-Bills are short-term government debt. They're sold at a discount and mature at face value.

T-Bill Terms Available

Term	Auction Frequency	Typical Yield (2026)
4 weeks	Weekly	~4.5%
8 weeks	Weekly	~4.5%
13 weeks (3 months)	Weekly	~4.6%
17 weeks	Every 4 weeks	~4.6%
26 weeks (6 months)	Weekly	~4.7%
52 weeks (1 year)	Every 4 weeks	~4.8%

How T-Bill Pricing Works

Example	Value
Face Value (Maturity)	$10,000
Discount Rate	5%
Term	26 weeks
Purchase Price	$9,750
Interest Earned	$250

T-Bill Advantages

Liquidity: Can sell on secondary market via broker
Flexibility: Multiple terms available
No Limit: Buy as much as you want
State Tax Free: Interest exempt from state/local tax
Weekly Auctions: Easy to build ladder

Treasury Notes & Bonds

Treasury Notes

Medium-term securities (2-10 years) paying semi-annual interest.

Term	Auction Schedule	Typical Yield (2026)
2-year	Monthly	~4.3%
3-year	Monthly	~4.2%
5-year	Monthly	~4.2%
7-year	Monthly	~4.3%
10-year	Monthly	~4.4%

Treasury Bonds

Long-term securities (20-30 years) paying semi-annual interest.

Term	Auction Schedule	Typical Yield (2026)
20-year	Monthly	~4.6%
30-year	Monthly	~4.6%

Notes vs Bonds: When to Choose Each

Factor	Notes (2-10 year)	Bonds (20-30 year)
Interest Rate Risk	Moderate	High
Income Stability	Medium-term	Long-term locked
Price Volatility	Lower	Higher
Best For	Conservative growth	Locking in high rates

TIPS (Inflation-Protected Securities)

TIPS are Treasury securities with principal that adjusts with inflation.

How TIPS Work

Buy TIPS at face value (e.g., $1,000)
Principal adjusts with CPI every 6 months
Interest rate is fixed, but paid on adjusted principal
At maturity, receive greater of adjusted or original principal

TIPS Example

Year	CPI Change	Adjusted Principal	Interest (2%)
Start	-	$1,000	$20
Year 1	+3%	$1,030	$20.60
Year 2	+3%	$1,061	$21.22
Year 5	+15% total	$1,159	$23.18

TIPS vs I-Bonds

Factor	I-Bonds	TIPS
Purchase Limit	$10K/year	No limit
Marketability	Not tradeable	Can sell anytime
Deflation Protection	Yes (rate won't go negative)	Yes (principal floor)
Tax Timing	Defer until redemption	Pay annually on adjustment
Best For	Individuals, small amounts	Larger allocations, IRA

Account Setup Guide

What You Need

Social Security Number
U.S. Address
Bank Account (for funding)
Email Address
Phone Number

Step-by-Step Setup

Go to TreasuryDirect.gov and click "Open an Account"
Choose Account Type: Individual, Entity, or Minor
Enter Personal Information: Name, SSN, address
Set Up Bank Link: Connect checking account for purchases
Create Security Questions: For account recovery
Verify Email: Click link in confirmation email
Receive Account Number: Save this carefully

Account Security Tips

Save Account Number: Needed for every login
Print Security Questions: Store in safe place
Use Strong Password: Unique to TreasuryDirect
Enable All Security Features: Accept the clunky 2FA
Keep Email Current: Recovery depends on it

Common Setup Issues

Issue	Solution
Bank verification fails	Try different browser, clear cache
Can't receive verification code	Check spam, verify phone number
Account locked	Call Treasury at 844-284-2676
Forgot account number	Request via email on file

How to Buy Treasury Securities

Buying I-Bonds

Log in to TreasuryDirect
Go to "BuyDirect" tab
Select "Series I"
Enter amount ($25 minimum, $10,000 maximum)
Choose funding bank account
Confirm purchase
Bond appears in account immediately

Buying T-Bills at Auction

Log in to TreasuryDirect
Go to "BuyDirect" tab
Select bill term (4, 8, 13, 26, 52 weeks)
Enter amount ($100 minimum, $10M maximum)
Choose "Non-Competitive" bid (accepts auction rate)
Set up auto-reinvest if desired
Submit before auction deadline

Understanding Auction Results

Term	Bid Type	Result
Non-Competitive	Accept auction rate	Guaranteed to receive securities
Competitive	Specify rate wanted	May not receive if rate too high

Most individual investors should use non-competitive bids. You'll get the auction-determined rate, which is fair market pricing.

Setting Up Auto-Reinvest

For T-Bills, you can automatically reinvest at maturity:

Select "Schedule repeat purchases"
Choose number of reinvestments (up to 25)
At maturity, proceeds automatically buy new T-Bill
Can cancel anytime before auction

Treasury Ladder Strategies

What Is a Treasury Ladder?

A ladder is a portfolio of Treasuries with staggered maturities. As each one matures, you reinvest, creating ongoing income and flexibility.

T-Bill Ladder Example (Monthly Income)

Purchase	Term	Matures	Action
$10,000 on Jan 1	4 weeks	Feb 1	Reinvest for 4 weeks
$10,000 on Jan 8	4 weeks	Feb 8	Reinvest for 4 weeks
$10,000 on Jan 15	4 weeks	Feb 15	Reinvest for 4 weeks
$10,000 on Jan 22	4 weeks	Feb 22	Reinvest for 4 weeks

Result: $40,000 in T-Bills with weekly maturities. Access to $10,000 every week if needed.

Treasury Note Ladder (5-Year)

Year	Amount	Term	Matures
Year 1	$10,000	1-year	2027
Year 2	$10,000	2-year	2028
Year 3	$10,000	3-year	2029
Year 4	$10,000	5-year	2031
Year 5	$10,000	7-year	2033

Result: $50,000 with staggered maturities. Reinvest each maturity at current rates.

I-Bond Ladder Strategy

Since I-Bonds have a $10K annual limit, build over multiple years:

Year	Purchase	Can Redeem (No Penalty)
2022	$10,000	2027
2023	$10,000	2028
2024	$10,000	2029
2025	$10,000	2030
2026	$10,000	2031

After 5 years: $50,000 in I-Bonds, with $10,000 becoming penalty-free each year.

Tax Treatment

Federal Tax

Security	When Taxed	Type of Income
I-Bonds	At redemption (or annually by election)	Interest income
T-Bills	At maturity	Interest income
T-Notes/Bonds	When received (semi-annually)	Interest income
TIPS	Annually (phantom income on adjustment)	Interest income

State Tax Exemption

All Treasury securities are exempt from state and local income tax. This is a significant advantage for investors in high-tax states.

State Tax Rate	Effective Yield Boost
California (13.3%)	4.5% Treasury = 5.2% equivalent CD
New York (10.9%)	4.5% Treasury = 5.05% equivalent CD
Texas (0%)	No advantage vs CDs

I-Bond Education Exclusion

I-Bond interest can be tax-free if used for qualified education expenses:

Bonds must be in parent's name (not child's)
Used for tuition and fees (not room/board)
Income limits apply (MAGI under ~$158K married)
Must redeem in year expenses paid

Tips & Best Practices

I-Bond Timing

Buy late in month: You get full month's interest even on last day
Rate changes: May 1 and November 1. Check new rate before buying
Redeem early in month: Avoid losing partial month's interest

Account Management

Bookmark the site: treasurydirect.gov (avoid phishing)
Print account details: Store with important documents
Update bank info: Before old account closes
Check annually: Review holdings and beneficiaries

Gift Box Strategy

You can buy I-Bonds as gifts for others:

Up to $10K per recipient per year
Held in "Gift Box" until delivered
Can hold for years before delivering
Recipient needs TreasuryDirect account to receive

TreasuryDirect vs Brokerage

When to Use TreasuryDirect

I-Bonds: Only available here
EE Bonds: Only available here
Long-term holding: No need to sell before maturity
Small amounts: No minimums on purchases

When to Use a Broker

Liquidity needed: Can sell anytime on secondary market
Tax-loss harvesting: Sell depressed bonds for losses
Better interface: Fidelity/Schwab are easier to use
Portfolio view: See Treasuries with other investments
TIPS in IRA: Avoid phantom income tax issue

Comparison

Factor	TreasuryDirect	Fidelity/Schwab
I-Bonds	Yes	No
T-Bills at Auction	Yes	Yes
Secondary Market	No	Yes
Commission	$0	$0
Interface	Clunky	Modern
Customer Service	Limited	Excellent

Recommended Approach

Use TreasuryDirect for I-Bonds ($10K/year)
Use Fidelity or Schwab for T-Bills and Notes (easier to manage)
Hold TIPS in IRA (via broker) to avoid phantom income taxation

Treasury rates and policies change. Always verify current rates and limits at TreasuryDirect.gov before purchasing. This guide is accurate as of January 2026.