You can buy government bonds directly from the U.S. Treasury, through a bank or brokerage, or from a bond dealer

The simplest route for most people is TreasuryDirect, the federal government's online platform where you buy bonds straight from the U.S. Department of the Treasury with no middleman and no fees. You create an account, link a bank account, and purchase Treasury bills, notes, or bonds in amounts as small as $100. The trade-off is that TreasuryDirect's interface is basic and you cannot sell bonds before maturity through the platform — you have to transfer them to a bank or brokerage first if you need cash early.

If you want to sell before maturity, trade multiple bonds at once, or prefer a single account for stocks and bonds together, a brokerage account (at firms like Fidelity, Charles Schwab, or Vanguard) is more flexible. You pay a small commission per trade, typically $0 to $10 depending on the firm, but you gain the ability to buy and sell on the secondary market whenever you want. Banks also sell Treasury bonds, though their fees tend to be higher and their selection smaller than brokerages.

A third option is a bond dealer or investment advisor, useful if you are buying large amounts or want professional guidance on which bonds fit your situation. Dealers charge a markup on the price rather than a flat fee, so the cost is less transparent but often reasonable for institutional-sized purchases.

Key Takeaways

  • TreasuryDirect is free and has no minimum account balance, but you cannot sell bonds early and the website is difficult to navigate.
  • Brokerages charge small commissions per trade but let you buy, sell, and hold bonds alongside other investments in one account.
  • Banks sell Treasury bonds but typically charge higher fees and offer fewer options than brokerages.
  • You need a Social Security number, a U.S. address, and a bank account to open any of these accounts.
  • Treasury bonds bought directly from the government are backed by the full faith and credit of the United States and carry no default risk.

How to set up a TreasuryDirect account

Go to treasurydirect.gov, click "Open an Account," and provide your Social Security number, date of birth, address, and email. You will need to verify your identity through a third-party service — the site will ask you security questions based on your credit history. Once verified, you link a checking or savings account and you are ready to buy.

Purchases settle in one to three business days. You can set up automatic purchases (called SmartExchange) to buy bonds on a regular schedule, which is useful if you want to dollar-cost average into Treasuries over time. When your bond matures, the principal and final interest payment deposit directly into your bank account.

Buying through a brokerage account

Open an account at a brokerage by providing your name, address, Social Security number, and employment information. Most brokerages let you open an account online in 10 to 15 minutes. Link a bank account for funding, and once the account is active (usually the same day or next business day), you can search for and buy Treasury bonds in the platform's bond section.

Brokerages display the yield, maturity date, and current price for each bond. You place an order just as you would for a stock, and it executes during market hours. The commission appears as a separate line item at checkout. If you want to sell before maturity, you simply place a sell order and the bond sells at the current market price — which may be higher or lower than what you paid, depending on interest rate movements.

Understanding the cost differences

TreasuryDirect charges nothing. A brokerage typically charges $0 to $10 per trade, though some firms waive commissions on Treasury purchases. A bank may charge $25 to $50 per transaction or a percentage of the purchase amount. Bond dealers charge a markup built into the price you see — you do not see a separate fee, but the dealer's profit is embedded in the bid-ask spread.

For small purchases (under $10,000), TreasuryDirect saves you money. For frequent trading or large amounts, a brokerage with low or zero commissions is usually cheaper than a dealer or bank. If you are buying a single large block and want advice, a dealer's markup may be worth the guidance.

What happens when your bond matures

On the maturity date, the Treasury or your brokerage automatically deposits the face value plus the final interest payment into your account. With TreasuryDirect, the money goes to your linked bank account. With a brokerage, it lands in your cash balance, and you can withdraw it, reinvest it, or leave it sitting there.

You do not have to do anything — the process is automatic. If you want to buy another bond with the proceeds, you can do so immediately. Many investors set up a ladder of bonds maturing at different times so they have cash coming due on a regular schedule.

Choosing between these options based on your situation

Use TreasuryDirect if you plan to hold bonds to maturity, want to avoid fees, and do not mind a clunky website. It works well for people building a simple bond ladder or making occasional purchases.

Use a brokerage if you might sell before maturity, want to own multiple types of investments in one place, or prefer a modern, easy-to-use platform. Brokerages are also better if you want to buy bonds issued before today (older Treasuries on the secondary market) or if you want to compare many bonds at once.

Use a bank only if you already have a strong relationship there and they offer a service you need — otherwise, their fees and limited selection make them the most expensive choice for most people.

Use a bond dealer if you are buying a large amount ($100,000 or more) and want professional guidance, or if you are buying bonds issued by states or cities (municipal bonds) rather than the federal government.

Frequently Asked Questions

Can I buy Treasury bonds with less than $100?

No. The minimum purchase is $100 for Treasury bills, notes, and bonds across all platforms — TreasuryDirect, brokerages, and banks. You can buy in $100 increments after that ($100, $200, $300, and so on).

Do I need a brokerage account if I already have a bank account?

No. You can buy Treasuries through your bank or through TreasuryDirect without opening a brokerage. A brokerage is only necessary if you want to sell bonds before they mature or if you want to hold stocks and bonds in the same account.

What is the difference between buying on the primary market and the secondary market?

The primary market is when you buy directly from the Treasury (through TreasuryDirect or a bank) at the original issue price. The secondary market is when you buy a bond someone else is selling, usually through a brokerage. Secondary market prices fluctuate based on interest rates and demand.

Can I lose money on a Treasury bond?

If you hold to maturity, no — you get back exactly what you paid plus all promised interest. If you sell before maturity on the secondary market, you may get less than you paid if interest rates have risen (because older bonds with lower rates become less valuable). You cannot lose money to default because the U.S. government backs all Treasuries.

Which platform is best for a beginner?

TreasuryDirect is simplest if you plan to buy and hold. A brokerage like Fidelity or Schwab is better if you want a modern interface, the option to sell early, or the ability to own stocks and bonds together. Both are free to open.