Why is this is better than an ETF treasury fund, CDs, and high-interest savings accounts?
Answer: Treasury Bills "interest" is state & local tax-free on the money earned. So if you're in a high-income tax state and city they're worth it.ETF fund aren't always 100% in treasuries and charge fees.
Question (asked a dozen or more times in the thread) : How does bill interest work?
Answer: Treasury Bills "interest" is the difference between face value and purchase price. You buy a $10k bill at less than $10k, upon maturity, it is worth $10k. The difference between purchase price and maturity value is your "interest."
Tax Equivalent Yield Calculator For Savings Bonds, Treasury Bills, and Tax-Exempt Money Market Funds
https://www.mymoneyblog
How Buy and Sell Treasury Bills
https://thefinancebuff.com/treasury-bills-cd-money-market.html
When are the auctions? When can I place an order?
4, 8, 13, 17, and 26 week bills are auctioned every week.
52 week bills are auctioned every four weeks.
You can see recent results and the planned schedule at: https://www.treasurydir
4 and 8 week bills are usually announced on Tuesday, auctioned on Thursday, and settle on Tuesday.
17 and week bills are usually announced on Tuesday, auctioned on Wednesday, and settle on Tuesday.
13 and 26 week bills are usually announced on Thursday, auctioned on Monday, and settle on Thursday.
52 week bills are usually announced every 4th Thursday, auctioned on Tuesday, and settle on Thursday.
At a brokerage, you can usually can place an order between the announcement and auction.
At TreasuryDirect, you can place an order up to about 8 weeks in advance.
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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!
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Personally, I'd just redeem them to my external account and fund the purchase of Bills from the same account.
I usually have Savings Bond redemptions from TreasuryDirect available the next business day in my Fidelity brokerage account.
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!
Although the funds will not be available to trade with so you accidentally won't use them for a different trade, they would still be earning the typical base rate that uninvested funds typically do. I found a reddit thread and also confirmed with a fidelity rep.
Just thought I'd leave this here in case anyone else was wondering about it .
Ref - https://www.reddit.com/r/fidelity..._con
the 8 weeks TBill will mature on 08/15
the 4 weeks TBill settlement date also on the same 08/15
can matured Tbill be rolled over to another new TBill at Fidelity?
or does Fidelity will require to have the cash on the auction date?
which I don't have ...
can margin account offset above?
also will there be any margin fee for those 3-5 days at Fidelity ?
A new question, if a partially cash out of my I-series and leave behind $200 will I still be charged the 3 months interest penalty on the portion I take out?
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A new question, if a partially cash out of my I-series and leave behind $200 will I still be charged the 3 months interest penalty on the portion I take out?
the 8 weeks TBill will mature on 08/15
the 4 weeks TBill settlement date also on the same 08/15
can matured Tbill be rolled over to another new TBill at Fidelity?
or does Fidelity will require to have the cash on the auction date?
which I don't have ...
can margin account offset above?
also will there be any margin fee for those 3-5 days at Fidelity ?
In a margin account there shouldn't generally be an issue or fees.
its worse than published 97.325611
https://www.treasurydir
can any expert there explain why is that? did Schwab eat the difference?
its worse than published 97.325611
https://www.treasurydir
can any expert there explain why is that? did Schwab eat the difference?
Sign up for a Slickdeals account to remove this ad.
its worse than published 97.325611
https://www.treasurydir
can any expert there explain why is that? did Schwab eat the difference?
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