I don't think CIT has anything to do with Citibank.
All fdic insured bank has a 250k protection from the federal government.
You can do this with treasurydirect.gov or a brokerage site like schwab, fidelity, or vanguard etc. They are federally taxed but not state. The latest 4 week t-bill was almost 6%
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We have been with them for years and they have paid us to put accounts there. Currently we are getting 3.85% interest in the bank account for unused funds. i don't know what Fidelity gets?
I got a bonus with them too. I transferred by money from HYSA and bought T-Bills.
But knowing what I know know, I am not staying with them.
You can do this with treasurydirect.gov or a brokerage site like schwab, fidelity, or vanguard etc. They are federally taxed but not state. The latest 4 week t-bill was almost 6%
What is the advantage of doing that over locking in a specific rate with a CD for x number of months (like 9-12 months)?
There are a few advantages to buying 4-week T-bills at auction over buying a CD for 9 or more months:
Liquidity: T-bills are very liquid investments, which means that they can be easily bought and sold on the open market. This is because they are backed by the US government, which is considered to be one of the safest borrowers in the world. In contrast, CDs typically have a fixed term, and if you need to access your money before the CD matures, you may have to pay a penalty.
Flexibility: T-bills are typically issued in small denominations, which means that you can invest as much or as little as you want. In contrast, CDs often have minimum investment amounts, which may be higher than what you want to invest.
Yield: T-bills typically offer a higher yield than CDs.
Taxation: T-bills are exempt from state and local income taxes, which can make them more attractive to investors in high-tax states. CDs, on the other hand, are subject to state and local income taxes.
There are a few advantages to buying 4-week T-bills at auction over buying a CD for 9 or more months:
Liquidity: T-bills are very liquid investments, which means that they can be easily bought and sold on the open market. This is because they are backed by the US government, which is considered to be one of the safest borrowers in the world. In contrast, CDs typically have a fixed term, and if you need to access your money before the CD matures, you may have to pay a penalty.
Flexibility: T-bills are typically issued in small denominations, which means that you can invest as much or as little as you want. In contrast, CDs often have minimum investment amounts, which may be higher than what you want to invest.
Yield: T-bills typically offer a higher yield than CDs.
Taxation: T-bills are exempt from state and local income taxes, which can make them more attractive to investors in high-tax states. CDs, on the other hand, are subject to state and local income taxes.
What happens to treasury bills if they don't raise the debt limit?
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But knowing what I know know, I am not staying with them.
It's 4.15% for me.
https://www.cfg.bank/personal-ban...osit-rates
I have nothing but good things to say about my relationship with them thus far (money market savings + 2 12-month non-callable CDs).
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Liquidity: T-bills are very liquid investments, which means that they can be easily bought and sold on the open market. This is because they are backed by the US government, which is considered to be one of the safest borrowers in the world. In contrast, CDs typically have a fixed term, and if you need to access your money before the CD matures, you may have to pay a penalty.
Flexibility: T-bills are typically issued in small denominations, which means that you can invest as much or as little as you want. In contrast, CDs often have minimum investment amounts, which may be higher than what you want to invest.
Yield: T-bills typically offer a higher yield than CDs.
Taxation: T-bills are exempt from state and local income taxes, which can make them more attractive to investors in high-tax states. CDs, on the other hand, are subject to state and local income taxes.
Liquidity: T-bills are very liquid investments, which means that they can be easily bought and sold on the open market. This is because they are backed by the US government, which is considered to be one of the safest borrowers in the world. In contrast, CDs typically have a fixed term, and if you need to access your money before the CD matures, you may have to pay a penalty.
Flexibility: T-bills are typically issued in small denominations, which means that you can invest as much or as little as you want. In contrast, CDs often have minimum investment amounts, which may be higher than what you want to invest.
Yield: T-bills typically offer a higher yield than CDs.
Taxation: T-bills are exempt from state and local income taxes, which can make them more attractive to investors in high-tax states. CDs, on the other hand, are subject to state and local income taxes.
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