How to Purchase 4-Week T-Bills

This week’s auction result put the interest rate of 4-week T-Bills at 5.146%, better than what EmigrantDirect and HSBC offer (5%). For second straight week, the rates are above 5%, making T-Bills more attractive now than a month ago. And I decided to jump back in again. Well, considering that I have only canceled the purchase for a month, I probably shouldn’t have stopped it in the first place.

Anyway, since I already have a TreasuryDirect account, restarting the weekly purchase process takes only a couple of minutes:

  1. Login into your TreasuryDirect account and click on Buy Direct
  2. Select Bills and continue to the next page;
  3. Select 4-week from the Product Term drop down menu;
  4. Enter the amount you want to purchase;
  5. Select a source of funds. If you don’t have one, you can add a bank account (checking or savings). For me, I use HSBC;
  6. Select repeat purchases with the number of purchases and weekly purchase frequency;
  7. Enter the earliest Tuesday available to be the starting date and set Source of funds for future purchase to be the same as in Step 5;
  8. Finally, select a destination for the following payments. Don’t select Zero-percent C of I as you won’t earn any interests with Zero-percent C of I. For me, I use HSBC.

Since the money is drawn from your bank account after the deposit from matured bills is made (if there is any), you only need $4000 in your account if you want to make repeat purchase of $1000 (minimum amount) every week. 

This article was originally written or modified on . If you enjoyed reading this post, please consider subscribing to my full RSS feed. Or you can also choose to have free daily updates delivered right to your inbox.

Author Info

This post was written by Sun You can find out more about Sun and his activities on Facebook , or follow him on Twitter .

5 Responses to “How to Purchase 4-Week T-Bills”

  1. Boryana |  Reply Nov 13, 2008 at 4:25 am

    I have a question also. I’d like to ask what is the procedure for foreigners to invest in T-bills? I’m Bulgarian, if that could help. Are there any restrictions or secial papers needed?
    Thank you very much for your answers!

Leave a Reply