Have you been looking for a secure and relatively stable way to grow your money? Perhaps you've heard whispers of Treasury Bills, or "T-bills," and wondered if they're a good fit for your investment portfolio. If you're a Webull user, you're in luck! Webull offers a straightforward way to access these government-backed securities. This comprehensive guide will walk you through every step of buying T-bills on Webull, from understanding what they are to placing your first order.
Understanding Treasury Bills: A Quick Primer
Before we dive into the "how-to," let's quickly clarify what T-bills are. Treasury Bills are short-term debt securities issued by the U.S. federal government to finance its operations. They are considered one of the safest investments available because they are backed by the "full faith and credit" of the U.S. government, meaning the risk of default is virtually zero.
Unlike traditional bonds that pay periodic interest (coupon payments), T-bills are zero-coupon securities. This means you buy them at a discount to their face (par) value, and when they mature, you receive the full face value. Your profit is the difference between the discounted price you paid and the face value you receive. T-bills typically have maturities ranging from a few weeks to one year (e.g., 4, 8, 13, 17, 26, and 52 weeks).
Now that you have a basic understanding, let's get started on Webull!
Step 1: Are You Ready to Invest? (Account Setup & Funding)
Before you can even think about buying T-bills, you need to ensure your Webull account is ready for action! This crucial first step involves having an active and funded Webull brokerage account.
Sub-heading 1.1: Open a Webull Account (if you haven't already)
If you're new to Webull, your first task is to open an account. The process is generally quick and entirely online:
Download the Webull App or Visit their Website: Webull is available on both mobile (iOS and Android) and desktop platforms. Choose your preferred method.
Sign Up and Verify: You'll need to provide personal information, including your name, address, Social Security Number (SSN), and employment details. Be prepared to verify your identity, often by uploading a photo of your ID.
Choose Your Account Type: For most individual investors looking to buy T-bills, a self-directed individual cash or margin brokerage account is suitable. You can also open an IRA (Traditional, Roth, or Rollover) to invest in T-bills for retirement.
Complete the Application: Follow the prompts to fill out the application thoroughly.
Sub-heading 1.2: Fund Your Webull Account
Once your account is approved, you'll need to deposit funds. Webull offers several ways to do this:
ACH Transfer (Electronic Bank Transfer): This is the most common and often free method. You link your bank account to Webull and transfer funds directly. It may take a few business days for the funds to fully settle.
Wire Transfer: For larger amounts or faster funding, you can initiate a wire transfer from your bank. Be aware that wire transfers often incur fees from your bank.
Check Deposit: You can also deposit funds by mailing a check, though this is typically the slowest method.
Remember: You can't buy T-bills with an empty account! Ensure you have sufficient funds available for your desired investment amount.
Step 2: Navigating Webull to Find T-Bills
With your account funded, it's time to locate the T-bill offerings within the Webull platform.
Sub-heading 2.1: Accessing the Fixed Income Section
Webull has a dedicated section for fixed income products, which is where you'll find T-bills.
On the Webull Mobile App:
Open the Webull app.
Tap on the "Markets" tab (usually at the bottom of the screen).
Look for a section related to "Fixed Income" or "Bonds". You might need to scroll or swipe through categories.
On Webull Desktop/Web Platform:
Log in to your Webull account.
Navigate to the "Markets" or "Trade" section.
Look for a tab or menu option that says "Fixed Income," "Bonds," or "U.S. Treasury."
Sub-heading 2.2: Exploring Available T-Bills
Once you're in the Fixed Income section, you'll typically see a list of available U.S. Treasury securities.
Identify T-Bills: Look for listings specifically categorized as "Treasury Bills" or "UST Bills." They will generally be identified by their maturity date (e.g., UST 0.0% 07/10/2025).
Review Key Information: Pay close attention to:
Maturity Date: This is when you will receive the full face value of the T-bill.
Ask Yield: This represents the annualized yield you would earn if you buy the T-bill at the "ask" price and hold it to maturity.
Bid/Ask Price: T-bills are traded on a secondary market, so you'll see a bid (the price buyers are willing to pay) and an ask (the price sellers are willing to accept). You'll typically buy at the ask price.
Minimum Quantity: Webull typically allows fractional bond investing, with minimums as low as $100. However, individual T-bills are usually sold in increments of $1,000 face value. Verify the minimum investment required for the specific T-bill you are interested in.
Pro Tip: Keep an eye on the "Ask Yield" as this is essentially your effective interest rate for holding the T-bill to maturity.
Step 3: Placing Your T-Bill Order
You've found the T-bill you want. Now, let's place the order.
Sub-heading 3.1: Selecting Your T-Bill and Order Type
Click on the Desired T-Bill: Tap or click on the specific T-bill you wish to purchase from the list. This will open a detailed order entry screen.
Choose "Buy": Ensure you have selected the "Buy" option.
Order Type: For T-bills, you'll typically use a Market Order or a Limit Order.
Market Order: This will execute your order immediately at the best available price. While convenient, the price you get might be slightly different from the last quoted price due to market fluctuations.
Limit Order: This allows you to specify the maximum price you are willing to pay. Your order will only execute if the T-bill can be purchased at or below your specified limit price. This offers more control over your purchase price. Given the relative stability of T-bill prices, a market order is often acceptable, but a limit order provides greater precision.
Sub-heading 3.2: Entering Quantity and Reviewing Your Order
Enter Quantity: This refers to the face value of the T-bill you wish to purchase. T-bills are generally traded in increments of $1,000 face value. So, if you want to invest $5,000, you would enter "5" (representing 5 x $1,000 face value).
Review Order Details: Before confirming, carefully review all the details of your order:
T-bill Maturity Date
Quantity (face value)
Estimated Total Cost (this will be the discounted price)
Estimated Yield to Maturity
Any associated fees (though Webull generally offers commission-free trading for US-listed securities)
Sub-heading 3.3: Confirming and Monitoring Your Order
Confirm Your Order: Once you are satisfied with all the details, click the "Buy" or "Place Order" button.
Order Confirmation: You should receive a confirmation that your order has been placed.
Monitor Your Order: You can typically track the status of your order in the "Orders" or "Portfolio" section of your Webull account. If you placed a limit order, it will remain open until it's filled or canceled.
Step 4: What Happens After You Buy?
Congratulations, you've successfully purchased T-bills on Webull! So, what happens next?
Sub-heading 4.1: Holding to Maturity
Automatic Redemption: When your T-bill reaches its maturity date, Webull will automatically redeem it for its full face value. The proceeds will then be deposited into your Webull cash management account.
No Ongoing Actions Required: Unlike stocks or some bonds, you don't need to do anything actively while holding T-bills to maturity. They are designed to be "set it and forget it" investments for their short duration.
Sub-heading 4.2: Selling Before Maturity (The Secondary Market)
While T-bills are generally held to maturity, you can sell them on the secondary market before their maturity date if you need access to your funds.
Market Price Fluctuations: The price of a T-bill on the secondary market can fluctuate based on prevailing interest rates. If interest rates rise after you buy, the market value of your T-bill might decrease, and if they fall, its value might increase.
Potential for Capital Gains or Losses: If you sell before maturity, you might experience a small capital gain or loss depending on market conditions. This is why T-bills are primarily recommended for investors who intend to hold them until maturity to guarantee the stated yield.
Step 5: Understanding the Tax Implications
It's important to be aware of how T-bill earnings are taxed.
Federal Taxable: The earnings (the difference between your purchase price and the face value) from T-bills are subject to federal income tax.
State and Local Tax Exempt: A significant advantage of Treasury securities, including T-bills, is that they are exempt from state and local income taxes. This can be a notable benefit, especially for residents of states with high income taxes.
Tax Forms: Webull will provide you with the necessary tax forms (e.g., Form 1099-INT) at the end of the year, detailing your T-bill earnings.
Always consult with a qualified tax professional for personalized tax advice.
Frequently Asked Questions (FAQs)
How to: Determine if T-bills are right for my portfolio?
Quick Answer: T-bills are ideal for investors seeking low-risk, short-term liquidity and capital preservation, often as an alternative to a traditional savings account, especially when yields are attractive. They are generally not for aggressive growth.
How to: Find the current T-bill interest rates on Webull?
Quick Answer: On Webull, navigate to the "Markets" or "Fixed Income" section. Look for the "Ask Yield" displayed alongside individual T-bill listings. This represents the effective annualized yield.
How to: Know the minimum investment for T-bills on Webull?
Quick Answer: While Webull offers fractional bond investing for some fixed income products, individual T-bills are typically purchased in increments of $1,000 face value. Check the specific T-bill listing for the exact minimum quantity.
How to: Understand the difference between T-bills, T-notes, and T-bonds?
Quick Answer: T-bills are short-term (up to 1 year, zero-coupon). T-notes have maturities from 2 to 10 years and pay interest semi-annually. T-bonds have maturities over 10 years and also pay interest semi-annually.
How to: Access my T-bill investment statements on Webull?
Quick Answer: You can typically find your account statements, including details of your T-bill purchases and redemptions, in the "Account" or "Statements" section of your Webull app or desktop platform.
How to: Sell my T-bills before maturity on Webull?
Quick Answer: Go to your "Portfolio" or "Positions" section, select the T-bill you own, and choose the "Sell" option. You'll then typically place a market or limit order to sell it on the secondary market.
How to: Reinvest T-bill proceeds after maturity on Webull?
Quick Answer: When a T-bill matures, the funds are deposited into your cash balance. You'll then need to manually place a new buy order for another T-bill or any other investment you choose.
How to: Protect my T-bill investment on Webull?
Quick Answer: T-bills themselves are considered extremely safe because they are backed by the U.S. government. Your Webull account is also protected by SIPC (Securities Investor Protection Corporation) up to $500,000, which covers brokerage failures, not investment losses due to market fluctuations.
How to: Deal with taxes on my T-bill earnings?
Quick Answer: T-bill earnings are subject to federal income tax but are exempt from state and local income taxes. Webull will provide you with a 1099-INT form for tax reporting. Consult a tax advisor for specific guidance.
How to: Contact Webull support if I have issues buying T-bills?
Quick Answer: You can contact Webull customer support through their in-app chat, email, or phone. Look for the "Help Center" or "Contact Us" section within the Webull application or on their official website.
