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I started buying T-Bills around 1983 or 1984 and don’t remember a $10,000 minimum but I wasn't buying less than $10,000 anyway. I do know it wasn’t a minimum of $3 million or even $50,000 and certainly isn’t now. I found a Treasury link that says the minimum for all Treasury Bills was reduced to $1,000 in 1998, 25 years ago.
Sounds like you got bad advice (IMHO) Some would recommend a fund, which I’m not a fan of because of management fees. Me (IMHO) just bot 6-mo treasures in our kids small accounts ($1000 minimum) thru Schwab ( no transaction fees). When/if you open up a Schwab account, click on “buy bonds” and they’ll take you to a chart of versions debt instruments including treasuries with any maternity you want (ie, your 13-week request).
All the best!
Quote:
Originally Posted by amil23
I agree with Fred122. Whoever gave you those exorbitant numbers must have been smoking left-handed cigarettes.
Not necessarily. I think the confusion may lie in the fact that purchasing T-Bills/Notes/Bonds on the secondary market can have higher minimums that the Treasury's own $1k. I've seen some fairly high minimums on some Treasuries offered there. For example, on Schwab right now, the 2-year Treasury with the highest YTM has a minimum purchase requirement of $500k face value ($467,120 cost) even though the minimum on the security itself is $1k. (CUSIP 91282CDS7)
I wanted to purchase some 26 week t-bills today, they told me the minimum purchase was 3mm on the 26week. I went for the 13 week as it only required 50K. I asked the agent where could I find this info, he didn't know, it only showed up when he placed the order. I've tried search but coming up blank.
Not necessarily. I think the confusion may lie in the fact that purchasing T-Bills/Notes/Bonds on the secondary market can have higher minimums that the Treasury's own $1k. I've seen some fairly high minimums on some Treasuries offered there. For example, on Schwab right now, the 2-year Treasury with the highest YTM has a minimum purchase requirement of $500k face value ($467,120 cost) even though the minimum on the security itself is $1k. (CUSIP 91282CDS7)
While technically true, the price difference for Treasuries is typically not very big.
For the CUSIP you mention, on Fidelity I see an ask yield of 4.963% for a 500 note minimum, and an ask yield of 4.949% for a 1 note minimum.
Although I have a Treasury Direct account, I followed the advice of bond guru, Harry Sit, and purchased New Issue bonds (not secondary market) through Fidelity. The minimum required is $1000, there is no fee. I also have a Treasury Direct account (minimum $100) but went with Harry's recommendation to buy via my brokerage account. Here's the link to Harry's step-by-step instructions.
Although I have a Treasury Direct account, I followed the advice of bond guru, Harry Sit, and purchased New Issue bonds (not secondary market) through Fidelity. The minimum required is $1000, there is no fee.
Good advice. Buying Treasuries online at a brokerage (e.g., Fidelity) is easy. (edited from original follow up).
There's no explicit commission for buying or selling Treasuries online at Fidelity, for both new issues and secondary issues. Other types of bonds generally have a $1 per bond commission unless it's a new issue.
Although I have a Treasury Direct account, I followed the advice of bond guru, Harry Sit, and purchased New Issue bonds (not secondary market) through Fidelity. The minimum required is $1000, there is no fee. I also have a Treasury Direct account (minimum $100) but went with Harry's recommendation to buy via my brokerage account. Here's the link to Harry's step-by-step instructions.
{snip}
It was an editing error. Really.
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Really. 
