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So I started to ladder T-Bills for the reasons everyone is stating in this thread. The rate is so volatile (in a good way) that locking into anything even 12 months is too long for me and rates continue to climb. I use fidelity and my suggestion is this.
When they offer the new 4 week and 8 week and 13 week t-bill (they auction on diff days and diff weeks) go in and buy one of each of them with whatever money you can spare. Let's use 5k for each.
I would buy a 4 week t-bill with NO Rollover for 5k
I would buy an 8 week t-bill with NO Rollover for 5k
I would buy a 13 week t-bill WITH Rollover for 5k
Then after 4 weeks when that first on comes up, buy another 13 week t-bill with the 5k WITH Rollover.
Then after 8 weeks when the second comes up, buy another 13 week t-bill with the 5k WITH Rollover.
Now you will have 3 13 week t-bills rolling every 4 weeks or so and rolling into a new one with the proceeds. This way every 4 weeks you are capturing an increasing rate and not locked into anything longer than 13 weeks. You benefit from the rate hikes, can cash out at any time, and you have state tax shelter from the earned interest.
I can almost guarantee that the above will yield you more net income (taking in tax break) at the end of 11months then the 5% locked CD
just my 2cents
You can buy treasuries from just about any brokerage. I use Fidelity, as I like their platform and they don't charge fees/commissions for treasuries. Fidelity Fixed Income Page[fidelity.com]
Follow the above link and scroll down to the row "U.S. Treasury." Choose the duration you want and click on it. You can then click "buy" to start a trade of a specific treasury bill/bond. Fidelity's Intro to Treasuries[fidelity.com]
This is true, but it doesn't make an 11-month CD at 5% a bad idea. Those HYS can change their rates at any time, but here you're guaranteed to get 5%.
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I signed up for Robinhood gold which gives you 4 percent yield on the cash shitting there. If you put in a big enough amount the 5 dollar per
Month fee is neglible.
IDK what RH uses to pay 4% but as a comparison, Fidelity pays the same if you select one of their Money Market funds for your settlement cash (but you have to manually change to one of them as they default to their lower rate FCASH). https://www.fidelity.com/mutual-f...unds-fcash Not saying Fidelity is special but just comparable.
Keep in mind they only offer 5% (and lock for 12 months) because they're overwhelming certain they can make more than that investing your money themselves. Most indications are that the economy is swinging back upwards. Growth stock mutual funds are more likely to earn a higher return in the next year. All depends on your level of risk, and if you'll want any of the money before the year is up.
Good point! How do you all keep track of accounts and balances? (Without just relying on whatever the bank says)
Same complaint have moved $ several times as rates changed.
I use Mint to track the monies that are all over. Have been using it for years and its free.
There are several other similar sites but I like mint.
Probably the wrong place to ask but... What would you guys do with 500k or so to ensure its not just sitting in an account gaining minimal interest?
First talk to a trusted financial advisor, who has a structure that only makes money when you do. Depending on your goals for that money (retirement, kids college, house savings maybe 1-2 years away, etc.) there are a variety of types of accounts to choose from. All have various tax & growth benefits depending on their purpose, to protect the money as much as possible (from taxes primarily) while still allowing for growth. Good, solid growth stock mutual funds, with long track records, have historically doubled your money every 7 years. There is some risk (like our markets the last 2 years) but long term those are just speed bumps. Find an advisor who is a teacher, and will leave you confident that you understand what's happening. I like the folks in Dave Ramsey's endorsed list, because they've been vetted and meet that teacher requirement.
darn, i opened up a capitol one savings account with the fall22 promo on 12/14, funded on 12/19. the promo for this cd ends 3/14. looks like i'm going to miss the 5% rate by a few days since i have to hold 90 days for the fall22 promo =\
hopefully there are even better rates in the next month or two, fed keeps raising rates...
Same exact days for me. Will have to see what they offer after 3/14
Could be good timing rolling over a 360 savings account with cash back after 90 days from a promo (fall22) last year.
I was waiting to take advantage of this CD until the cash from that fall promo hits my account, but I just checked and it won't arrive until March 25. Since I met the requirements already (hold until Jan 24th) I just need to jump on this CD offer.
Apy is 5%,all that matters unless you're withdrawing interest. NFCU gives anniversary loyalty kicker of .25% if you've been with them long enough. Ergo 5.25 apy
You can buy treasuries from just about any brokerage. I use Fidelity, as I like their platform and they don't charge fees/commissions for treasuries. Fidelity Fixed Income Page[fidelity.com]
Follow the above link and scroll down to the row "U.S. Treasury." Choose the duration you want and click on it. You can then click "buy" to start a trade of a specific treasury bill/bond. Fidelity's Intro to Treasuries[fidelity.com]
Does anyone know what the differences are between these two T-Bill types which I see listed on Fidelity platform?
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When they offer the new 4 week and 8 week and 13 week t-bill (they auction on diff days and diff weeks) go in and buy one of each of them with whatever money you can spare. Let's use 5k for each.
I would buy a 4 week t-bill with NO Rollover for 5k
I would buy an 8 week t-bill with NO Rollover for 5k
I would buy a 13 week t-bill WITH Rollover for 5k
Then after 4 weeks when that first on comes up, buy another 13 week t-bill with the 5k WITH Rollover.
Then after 8 weeks when the second comes up, buy another 13 week t-bill with the 5k WITH Rollover.
Now you will have 3 13 week t-bills rolling every 4 weeks or so and rolling into a new one with the proceeds. This way every 4 weeks you are capturing an increasing rate and not locked into anything longer than 13 weeks. You benefit from the rate hikes, can cash out at any time, and you have state tax shelter from the earned interest.
I can almost guarantee that the above will yield you more net income (taking in tax break) at the end of 11months then the 5% locked CD
just my 2cents
Fidelity Fixed Income Page [fidelity.com]
Follow the above link and scroll down to the row "U.S. Treasury." Choose the duration you want and click on it. You can then click "buy" to start a trade of a specific treasury bill/bond.
Fidelity's Intro to Treasuries [fidelity.com]
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Month fee is neglible.
I use Mint to track the monies that are all over. Have been using it for years and its free.
There are several other similar sites but I like mint.
First talk to a trusted financial advisor, who has a structure that only makes money when you do. Depending on your goals for that money (retirement, kids college, house savings maybe 1-2 years away, etc.) there are a variety of types of accounts to choose from. All have various tax & growth benefits depending on their purpose, to protect the money as much as possible (from taxes primarily) while still allowing for growth. Good, solid growth stock mutual funds, with long track records, have historically doubled your money every 7 years. There is some risk (like our markets the last 2 years) but long term those are just speed bumps. Find an advisor who is a teacher, and will leave you confident that you understand what's happening. I like the folks in Dave Ramsey's endorsed list, because they've been vetted and meet that teacher requirement.
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hopefully there are even better rates in the next month or two, fed keeps raising rates...
I was waiting to take advantage of this CD until the cash from that fall promo hits my account, but I just checked and it won't arrive until March 25. Since I met the requirements already (hold until Jan 24th) I just need to jump on this CD offer.
4.88% not 5.25%
Apy is 5%,all that matters unless you're withdrawing interest. NFCU gives anniversary loyalty kicker of .25% if you've been with them long enough. Ergo 5.25 apy
How much would you be making on a 100k investment
These can be sold at anytime? No lock in period
Is this the number 1 etf in this category. 12 percent seems very good in this market. What's the catch or downside to all this ?
Fill me in here
How much would you be making on a 100k investment
These can be sold at anytime? No lock in period
Is this the number 1 etf in this category. 12 percent seems very good in this market. What's the catch or downside to all this ?
Fill me in here
ETF = exchange-traded fund
jepi = ?
50% t-bills
set it and forget it
Fidelity Fixed Income Page [fidelity.com]
Follow the above link and scroll down to the row "U.S. Treasury." Choose the duration you want and click on it. You can then click "buy" to start a trade of a specific treasury bill/bond.
Fidelity's Intro to Treasuries [fidelity.com]
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US TREASURY BILLS ZERO COUPON
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