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 (scroll to bottom of list)
U.S. Government Treasury is offering
Up to 5.499% 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
chunmanc123 for sharing this deal
Note, if interested, you may choose to purchase Treasury Bills through your preferred Brokerage Firm
Example Current Rates (8/9/23): (Coupon Rates [Interest Rates] change daily):
- 13-Week Maturity: 5.451%
- 26-Week Maturity: 5.499%
- 52-Week Maturity: 5.351%
Top Comments
Treasury BILLS are currently paying over 5% for various maturity lengths under 1 year. These can be bought through most brokerages even without a TreasuryDirect account.
Treasury BONDS are paying 4% or less and have 20 or 30 year terms.
The 4 week bill ordering opens tomorrow 8/8, the deadline to buy it is sometime Thursday 8/10 morning depending on where you are buying it and it settles on 8/15.
On TD Ameritrade, they take your money on the 10th (take it out of the money you can trade with when you hit purchase which can be as early as the 8th) and buy the bill on the 15th during time which you earn no interest. Thus the reason that I stopped buying 4 and 8 week bills at auction. Secondary markets settle the next day so often a better deal. Treasury direct does not take the money from your bank account till the day it settles and Vanguard keeps it in the settlement fund earning interest till the day it settles as well. Not sure about the other brokerage houses. Also, not sure if you rollover the t-bills how the time between redemption and the next auction works as far as any interest you are losing as that is often a week of interest as well.
FYI, if you do the math, 4 weeks for $10,000 usually gets you about $40 in interest for letting them hold your money for 5 weeks.
The Monday auctions for 3 months and six months settle on Thursday so much less time to hold your money for nothing and less redemption downtime.
The money market funds often have repurchase agreements that are taxed at the state and local level but obviously more liquid. Am looking into the ETFs now.
Good luck to everyone!
FYI, to the person who asked about the 100,000 for three months. If you did the 13 week auction today you would get $1338 in interest at the end of the three months. Prorated per annum as per the person who posted above stated
Technically, you would pay $98,662 for the bonds and get $100,000 on November 9th. The difference between what you pay now and what the bonds are redeemed for in November is considered the interest.
783 Comments
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Your advice was solid, could've been better if you mentioned the liquidity the ETFs bring vs locking down your money even for 4-8 weeks in bills and bonds.
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edit: answered
Buying T-bills directly allows for better returns (for your time) because you are saving some on the expense ratio of many of the ETF/mutual funds. Some charge anywhere from 0.09-0.40 percent depending on the fund and class of investment you purchase.
And you can pick longer maturities that may yield higher returns (6 month T-bills are trading at 5.5x% currently).
Also if you purchase T-bills directly you could be exempt from state taxes for the profits. That can't be said for many/most mutual funds that trade govt debt (there are some that are exempt year to year because they only hold T-bills, not repurchase agreements)
T-bills are T-Bills. if you buy them, you have 100% guarantee of the returns promised as it's a promise of the government, unless the US defaults.
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Shahhere
In the type drop down, select bills and choose what time frame bill you want.
Or whatever your timeframe choice is in this list
https://fixedincome.fid
I don't have any 'How to buy Tbills' link as I have not had any issue buying my iBonds and Tbills on TreasuryDirect without 'training'. I have uploaded a few screen shots I just made from TreasuryDirect website.
Step 0: Login to your account at https://www.treasurydir
Step 1: [Screen shot 1] Click on 'Buy Direct' from the menu bar
Step 2: [Screen shot 2] Select 'Bills' under 'Marketable Securities' and 'Submit'
Step 3: [Screen shot 3] Pick up the Tbill term and date you want to buy. There are 2 dates listed: Auction date = the deadline you must submit the order. Don't remember the exact cut-off time but I usually do that before 7am. Of course you can place your order days before the auction date. Issue Date = the settlement date when your money will be taken from your linked bank account. Make sure you have the full amount in your bank account by the issue date. The actual amount taken from your bank account will be less than the full amount as Tbills give you a discount upfront (think it as a prepaid interest).
Step 4: [Screen shot 4] The link 'View recent auction results' give you an idea on the discount in the past. Specify the amount of Tbills to buy, the source of funds is your linked bank account (you can set up multiple bank accounts). In the 'Schedule Reinvestment' section, you have an option to auto-roll your Tbill into the next one upon maturity for how many times you want within the next 2 years. At the end, you can specify which bank account to deposit your maturity payment (for no auto-rolling) or your next discount amount (for auto-rolling). Then you can submit your order.
Step 5: [No screen shot] You will be presented with your order review and you confirm your order.
All your order history and auto-rolling history are available under 'History' from the menu bar. The bank account and auto-rolling settings can be changed at anytime after you purchased the Tbills by going to 'Current Holdings' from the menu bar.
I hope this is helpful.
It's a big deal for those in States with high income taxes like my crap state.
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