T-bills are sold in terms ranging from 4 to 26 weeks. Bills are sold at a discount from their face value (i.e. you might pay $900 for a $1,000 bill). When the bill matures, the redemption value of the T bill would be $1,000. The difference between the purchase price and face value is interest.

For tax purpose, the interest income is exempt from state and local income taxes, but subject to federal income tax.

You can Google to “TreasuryDirect” website for more info on government savings options (bond, T bills, treasury notes, etc.)

Hope it helps!