Treasury Bills (T-Bills): What Are They?

By Kristi Waterworth – Updated Sep 8, 2025 at 12:41 PM EST

Key Points

T-bills are short-term, government-backed debt sold at a discount and mature within a year.
They are tax-free at state and local levels but subject to federal taxes upon maturity.
Ideal for low-risk investors, T-bills add stability to portfolios with volatile assets.
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The U.S. Treasury building. — Image source: Getty Images.

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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