TreasuryDirect vs brokerage: where to buy bills
Both channels can hold the same Treasury bills. Choose based on operations, not mythology.
TreasuryDirect
TreasuryDirect is the government’s account system. Auction purchases avoid broker commissions. Funding follows Treasury’s bank-link rules and cutoffs — miss them and the order fails.
It is clean if you want a pure bill portfolio without mixing equities in the same UI. Ladder management is manual: you track maturities and reinvestment yourself.
Brokerage
Most major brokerages offer bill auctions and secondary markets. Convenience is high when cash already lives there. Check whether Treasury trades have fees and how interest appears on the 1099-INT.
Secondary purchases can price above or below par. Auction orders via a broker usually target auction results — read the order ticket language carefully.
Operational checklist
Align settlement cash before deadlines. Decide auto-roll policy. Download tax documents that break out Treasury interest for state returns.
- Confirm bank link or broker cash before auction day.
- Store CUSIPs and maturity dates in your calendar.
- Re-run after-tax math when your state rate or yields move.
On this wire
General information, not personalized advice.