Interest earned on T-Bills
Hi Terry,
I just recently completed my first 6 month T-Bill purchase. I received the amount back from TreasuryDirect in my checking account without the interest earned. Is there a reason for this?
Terry Says
Read this: https://www.terrysavage.com/t-bills-beat-cds-2/
It will explain. Go back to when you purchased the T-bills. The entire amount was not taken out of your account. You got the interest up-front!
Since you didn’t elect to renew — rolloer– your T-bills, the full purchase amount went back into your linked account.
Next January don’t forget to check your TreasuryDirect account inbox for your 1099. Taxes are paid on the interest in the year of maturity of the T-bill.
It’s all in this article.
