HOW TO BUY TREASURY BONDS: What You Should Know & Guide

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Risk-averse new investors who worry about losses may be hesitant to invest given the economy’s impending recession and the stock market’s continued volatility. Treasury bonds, which are one of the safest things you can buy, have been hurt by the scandal surrounding the now-defunct crypto exchange FTX. This has been a problem for new investments like cryptocurrencies, which got both new and experienced investors excited and were thought of by some as “the next big thing.” Well, this is just the tip of the iceberg! Read on to learn how to buy treasury bonds using Fidelity, Vanguard, and Schwab.


T-bonds, which are commonly known as “treasuries,” are considered to be safer than stocks, cryptocurrencies, and exchange-traded funds (ETFs) as they are backed by the United States government. Due to the current market instability, adding Treasury bonds to your investment portfolio may be a wise move since they will generate some return on your money rather than putting it in cash. Below are Treasury bond purchasing ideas and options:

  • Why Treasury bonds are good now.
  • Treasury securities versus treasury bonds.
  • Best way to buy Treasury bonds directly.
  • Purchase Treasury bonds.
  • Treasury bond investment options.

Why Treasury Bonds Are Good Now

T-bonds are government-backed debt securities issued by the United States. T-bonds with maturities ranging from 20 to 30 years earn interest. Also, investors can only lose money if the United States government defaults. Bond rates are currently high, which may result in higher long-term returns. On December 27, the 20-year US bond yielded slightly more than 4%, up from 2% a year earlier.

Treasury Securities Versus Treasury Bonds

Treasury bonds that are due in 20 or 30 years can be bought for $100. Investors receive interest every six months until maturity, without state or local taxes. Interest earned is subject to federal taxes. Therefore, Treasury bonds, notes, bills, TIPS, and FRNs are other Treasury assets. Securities that can be bought and sold, like Treasury bonds, can be moved and sold before they mature.

Best Way to Buy Treasury Bonds Directly

TreasuryDirect, brokers, and banks are the best places to sell government bonds. However, before you can sell T-bonds through TreasuryDirect, you need an account and a Social Security number. Investors can buy debt securities like Treasury bonds at debt auctions. On the secondary market, brokers and banks must buy Treasury bonds. The secondary market, which is different from TreasuryDirect, sells older Treasury bonds.

Steps to Take To Buy Treasury Bonds

Here are the steps you need to take in order to buy Treasury bonds:


  • Register for TreasuryDirect to buy securities.
  • Click Buy Direct.
  • Select a Treasury bond, enter your purchase amount, and finish the form.
  • Bid on Treasury bonds.


  • For Treasury bonds, open a bank account.
  • Inform the bank of your bid’s competitiveness.
  • Bid on Treasury bonds.

Note: Due to availability and market price, competitive bidders may not receive all Treasury bonds offered.


  • Open a brokerage account with a Treasury Automated Auction Processing System-accessible firm (TAAPS).
  • Bid and let the broker acquire Treasury bonds directly through TAAPS.

Note: Banks and brokers auction Treasury bonds. You must state your discount rate, yield, or discount margin before bidding. Banks and brokers charge commissions for this service.

Other Ways to Invest in Treasury Bonds

Mutual funds are also suitable for buying Treasury bonds. Most mutual funds own Treasury bonds, equities, bonds, and other instruments. ETFs can buy Treasury bonds like equities. Hence, for a long-term beginning investor, Treasury bonds can hedge stock market risk. Treasury bonds may yield a higher return than savings accounts and other secure investments.

Also see: HOW TO INVEST IN BONDS: Guide& What You Should Know

How to Buy Treasury Bonds Fidelity 

It is easy to understand why many investors buy treasury bonds using Fidelity given the company’s affordable bond trading fees, committed service, and cutting-edge technologies. Thus, below are ways to buy Treasury bonds using Fidelity.

#1. Low Costs

To buy Treasury bonds using Fidelity, you have to consider their bond pricing because it is unambiguous, open, and reasonable.

  • Compare Fidelity’s $1 markup on each bond to some of its competitors, whose online prices for corporate and municipal bonds were found to be $15 more per bond, on average.
  • Free trading of fresh issues and fresh issue CDs
  • Buy U.S. Treasuries online for nothing, or place orders with a representative for a flat fee of just $19.95.
  • For individual bond orders, you can only pay a maximum markup/discount of $250, or just $50 for bonds that mature in a year or less.

#2. Dedicated support

To buy Treasury bonds using fidelity. Their team of experts in fixed income solutions can collaborate with your financial advisors and you on all facets of your financial planning.

  • Get a detailed analysis of your investments in bonds and bond funds, including your outside accounts.
  • Help building a bond or short-term CD ladder to increase the efficiency of your money
  • Their High Net Worth Bond Desk offers even more individualized service to investors with bond portfolios of $3 million or more.

#3. Bond Tools and Resources

You can prosper as a fixed income investor with the aid of our tools and informational resources.

  • Easily do research and trade using our web platform.
  • Create a bond ladder to help you produce consistent cash flow.
  • To get a comprehensive review of your whole bond portfolio, use our Fixed Income Analysis Tool.
  • Get notifications for forthcoming new issue offerings, maturities, and changes in credit ratings.

#4. Over 75,000 bonds and CDs

They also provide one of the most extensive bond inventories offered by a single brokerage company.

  • You can choose from more than 75,000 bonds and CDs from hundreds of dealers across the country.
  • Receive regular access to 45 different states’ new issue tax-exempt municipal offerings in 2023.
  • Choose from more than 100 FDIC-insured new issue CDs from different banks with a range of maturities and affordable rates.

How Do I Get a 3 Month Treasury Bond?

TreasuryDirect is the official website of the United States government where citizens and foreign investors can purchase long and short term U.S. Treasury securities. Treasury bills, issued for shorter periods of time, can be traded for cash at any bank or securities broker. However, if you don’t plan on keeping your Treasuries until they mature, your only option is to sell them through a financial institution or a broker.

How to Buy Treasury Bonds Vanguard 

Below are ways on how to buy Treasury bonds using Vanguard:

Step 1

To buy Treasury bonds using Vanguard. Go to the Buy & Sell section under the My Accounts page. Select the Check Rates and Trade Bonds option on the Buy & Sell landing page.

Step 2

Also, to buy Treasury bonds using Vanguard. You must decide which account, if any, you want to use for your purchase if you have more than one. Click CONTINUE after selecting the account from the menu.

Step 3

By selecting the right yield from the Bonds area of the Quick Search menu, you may choose the bond type, maturity, and credit quality. Alternatively, you can search for a bond using the tabs for agencies, municipals, or Corporations.

Step 4

To buy Treasury bonds using Vanguard, look over the search results. The product description page will populate when you select the Buy link in the Action column next to the bond you wish to purchase. Review the bond’s details, then click BUY to proceed.

Step 5

If you want to buy a certain number of bonds, enter the quantity. The trade details will then be filled in once you click CALCULATE. After carefully examining the information, click CONTINUE. Keep in mind that before you can choose CONTINUE, you must first check the box confirming that you have read the terms of the security you are acquiring.

By choosing the appropriate link under Account information, you may check your current holdings and open orders. If you choose one of these URLs, you won’t lose any progress information on your existing order. In this section, you can also review the funds that are accessible for trading.

Step 6

Review your order’s specifics. Click SUBMIT to finalize your transaction when you are ready. You’ll be taken to a screen with a list of the details of your order. At the top of the summary, you can find your order confirmation number. On the confirmation screen, only the placement of your order is confirmed. Click on “My orders and quotations” to view your order’s status.

Only for illustrative purposes, and not as an advice to purchase or sell a specific security, this example. Vanguard Brokerage Services, a branch of Vanguard Marketing Corporation and a member of FINRA and SIPC, is responsible for holding brokerage assets.

How to Buy Treasury Bonds Schwab

You can use Schwab to buy Treasury bonds. Additionally, there is absolutely no charge from Schwab (in the secondary market, you must pay a bid-ask spread). Thus, below are ways to buy Treasury bonds using Schwab.

  • To buy Treasury Bonds using Schwab. Choose Trade from the top menu to find Find Bonds & Fixed Income.
  • Select “New Issues.”
  • Select Treasury Auctions from the drop-down menu for Bond Type.

A list of issues that are open to new orders will appear. If you can’t find anything for the term you want to purchase, check the U.S. Treasury calendar and return within your order window. Wait a few more hours if you don’t see the new Treasury presented on the announcement date. It will appear later on in the day.

Also, when you want to buy Treasury bonds using Schwab, your purchase must be made in $1,000 blocks. When this Treasury matures, Schwab will automatically place a fresh order for the same period and the same amount if you choose the auto-rollover function. When this Treasury bill matures, all you’ll have is cash if you don’t use the auto-rollover function. 

How Much Do 1 Year Treasury Bonds Pay?

The one year Treasury rate is 5.00%, up from 1.05% last year and 4.99% the previous market day. This is greater than the average over the long run of 2.87%.

Is Buying Treasury Bonds a Good Idea?

Since they are completely guaranteed by the U.S. government, Treasury bonds are regarded as low-risk investments that are typically risk-free when held to maturity. Treasury bonds yield less than higher-risk investments like equities.

How Do I Get a 3 Month Treasury Bond?

Short-term Treasury bills can be purchased through TreasuryDirect, the American government’s website for purchasing US Treasury securities. Short-term Treasury bills can also be purchased and sold through a bank or broker. If you do not intend to hold Treasury securities until maturity, the only way to sell them is through a bank or broker.

Can I Withdraw From Treasury Bonds?

After a year, you can redeem (cash in) your I bond. However, you forfeit the final three months of interest if you redeem the bond earlier than five years. 

What Is the Current Rate for Treasury Bonds?

The average rate for I bonds issued between November 2022 and April 2023 is 6.89%.

What Are the 4 Main Types of Treasury Bonds?

Five different categories of Treasury marketable securities are available from the US Treasury: Treasury Bills, Treasury Notes, Treasury Bonds, Treasury Inflation-Protected Securities (TIPS), and Floating Rate Notes (FRNs). 

How Long Do You Have to Hold Treasury Bonds?

Until they mature, bonds pay a predetermined rate of interest every six months. A bond can be kept until it matures or sold before that time.

How to Make Money With Treasury Bonds?

There are two ways to profit from bond investments. The first step is to keep those bonds until they mature and earn income on them. Typically, interest on bonds is paid twice a year. Selling bonds for more than you paid for them at first is the second technique to make money with bonds.

Do Treasury Bonds Pay Monthly?

Notes have maturities of 2, 3, 5, 7, or 10 years, making them relatively short- or medium-term instruments. Interest is paid on bonds and notes every six months.



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