Treasury bills for individual investors

A Treasury bill (T-bill) is a short-term loan to the US government. You buy it at a discount, hold it for a fixed term (4 weeks to 52 weeks), and receive the full face value at maturity. The difference is your interest. T-bills are considered the safest investment on earth — the US government has never failed to pay one back. Until recently, buying them was a headache. Now, it's easy, and in high-rate environments they often beat every other ultra-safe option.

Why T-bills are attractive

• Backed by the full faith and credit of the US Treasury. Safer than any bank.
• State and local tax-free. Federal tax still applies, but the state exemption makes them more attractive than HYSAs for residents of high-tax states.
• Can pay more than savings accounts when short-term rates are high.
• No dollar limit like FDIC insurance ($250k). You can hold millions in Treasuries with no counterparty concentration risk.

How to buy them

• TreasuryDirect.gov: the government's own portal. Slightly dated UI, but direct and free. Buy in $100 increments at weekly auctions.
• Your brokerage: Fidelity, Schwab, Vanguard, and most brokers let you buy Treasuries directly. More convenient if your money is already at a brokerage.
• T-bill ETFs: funds like SGOV and BIL that hold rolling T-bills. Simpler than laddering, instantly liquid, pays monthly distributions. Small expense ratio (~0.1%) but worth it for most people.