Note: Rates are subject to change daily; rates are the daily secondary market quotations on the most recently auctioned Treasury Bills for each maturity tranche (4-week, 8-week, 13-week, 17-week, 26-week, and 52-week) for which Treasury currently issues new bills. Up to Date Rates can be found
here
U.S, Government Treasury is offering
Up to 5.50% Coupon Rate (Interest Rate) on
Short Term Treasury Bills which can be
Purchased for a Duration of 4-Weeks-52 Weeks Maturity.
Thanks community member
nj_jules for sharing this deal
Note, if interested, you may choose to purchase Treasury Bills through your preferred Brokerage Firm
Current Rates (5/10/23): (Coupon Rates [Interest Rates] change daily):
- 4-Week Maturity: 5.50%
- 8-Week Maturity: 4.93%
- 13-Week Maturity: 5.23%
- 17-Week Maturity: 5.16%
- 26-Week Maturity: 5.10%
- 52-Week Maturity: 4.75%
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Top Comments
$511/365 = $1.4 per day.
$1.4 * 56 days = $78.40.
HTH
Merrill Edge: supposedly could do so, but only over the phone, which incurs a fee. (Correct me if I'm wrong)
Pros and cons amongst each brokerage are not that far apart (in my opinion) but mainly boil down to the following:
-Minimum purchase quantity (most are $1k, while E*TRADE is $5k)
-Automatic reinvestment (Fidelity has this, while E*TRADE does not)
The major differences between buying on TreasuryDirect vs brokerages are the following:
-Convenience. You cannot purchase auction treasuries a month ahead of time at brokerage vs being able to do so on TreasuryDirect. This can be alleviated if you look at the Auction announcement dates at this link: https://home.treasury.g
-Liquidity. You cannot directly sell these on the secondary market on TreasuryDirect vs being able to do so at the brokerages
-Minimum purchase amount. TreasuryDirect has just $100 as minimum, whereas the brokerages are all higher.
-Some brokerages (such as Fidelity) show expected yield, whereas TreasuryDirect doesn't have this (although you can check past auctions or daily rates for an idea)
Google search for your specific brokerage on where to click to buy these and note the minimum purchase amounts.
Such as typing "Buying Treasury at Auction on ETRADE" https://www.youtube.com/watch?v=lxJ7otl
Hope that helps!
EDIT: Fixed errors, added details of pros and cons, with links to auction schedule, and YT link.
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Also, their SNSXX (US Treasury Money Fund) is yielding 5.08% currently.
Also, their SNSXX (US Treasury Money Fund) is yielding 5.08% currently.
Also, their SNSXX (US Treasury Money Fund) is yielding 5.08% currently.
The other part of that is as long as the USD remains the world's reserve currency, its value will not reduce much. If anything, the recent wars will pump up the value of the USD. Argentina is about to dollarize, which will take up to 6 billion USD away from global market, making the USD even more valuable.
TLDR: the US will not default.
Also, little known fact: most of its debt is owed to itself.
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Short term parking of funds that you're going to need for something like a new car or down payment on a house? Terrible idea. Stocks and ETFs certainly CAN get you more money than this, but they can also lose significant amounts of money. T-bills only go up. Stocks don't.
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