↓ Down from 5.5% peak
3.86%
13-week T-Bill yield (Aug 2025)
Forbes / US Treasury, Aug 2025
Treasury Bill (T-Bill) calculator
Should you move your savings into a T-Bill?
T-Bills are short-term US government bonds safer than any bank, currently paying ~3.8–4.0% APY, and exempt from state and local taxes. Pick a mode below to find out if they make sense for you.
Pick a duration Rates shown are recent estimates.
The discount rate is how T-Bills are quoted, it's not the same as APY. Our calculator converts it to a true APY (coupon-equivalent rate) so you can compare it fairly to a HYSA.
You pay today Face value minus the discount
$9,902.43
$97.57
You earn at maturity
3.95%
True APY (coupon-equivalent)
3.08%
After-tax APY (fed only — state exempt)
91 days
Days until your money comes back
You invest $9,902.43 today and receive $10,000 in 91 days. Your real yield is 3.95% APY — and you pay zero state tax on that interest.
Your money at a glance
Principal vs interest earned at maturity.
Principal $9,902.43
Interest earned $97.57
Common questions
T-Bills explained in plain language
Everything a regular person needs to know before buying their first Treasury Bill.
A T-Bill is a short-term loan you make to the US federal government. You pay a slightly discounted price today and receive the full face value back in 4 weeks to 1 year. The difference is your interest. T-Bills are considered the safest investment in the world — backed by the full faith and credit of the US government.
T-Bills don't pay periodic interest — instead they're sold at a discount. If the face value is $1,000 and you pay $981, you earn $19 at maturity. The US Treasury quotes this as a bank discount rate (calculated on face value using a 360-day year), which makes it look lower than a HYSA APY. Our calculator converts it to a coupon-equivalent rate (calculated on your actual investment using 365 days) so you can compare them fairly.
T-Bill interest is subject to federal income tax in the year the bill matures. However, it is completely exempt from state and local income taxes — by law, all US Treasury securities are exempt. This makes T-Bills especially attractive in high-tax states like California (9.3%), New York (6.85%), and New Jersey (10.75%), where a T-Bill at 3.9% can beat a HYSA at 4.5% on an after-tax basis.
Three ways: (1) TreasuryDirect.gov — buy directly from the government, no fees, $100 minimum. (2) Your brokerage (Fidelity, Schwab, Vanguard) — slightly easier interface, also no commissions for new issues. (3) A money market fund that holds T-Bills — most liquid option, no lock-up period. TreasuryDirect auctions happen weekly for most durations and monthly for 52-week bills.
A T-Bill ladder means spreading your money across multiple durations — for example, putting equal amounts into 4-week, 13-week, 26-week, and 52-week bills. As each one matures, you get cash back and can decide to reinvest or spend it. The benefit: you earn higher rates on longer durations while still having money maturing regularly. If rates rise, the shorter bills let you reinvest at higher yields sooner.
It depends on two things: your state tax rate and how long you can lock up the money. T-Bills win when: your state tax rate is above ~5%, rates are falling (the T-Bill rate is locked at purchase, HYSA rates can drop), or you want to lock in a specific rate. HYSAs win when: you need instant access to the money, your state has no income tax, or the HYSA rate is significantly higher than the T-Bill rate.