Ask Terry Questions Ira investment in T-bills?

Ira investment in T-bills?

By Terry Savage on October 26, 2018 | Chicken Money

Ms Savage,
I am retired saw your recommendations on tv and moved money from .05% interest in banks to 2.5% t-bill interest rates. Thanks much made a huge difference! Any advice on how I can invest ira in banks to get higher rates? Is treasury bills an option?

Terry Says

Glad you’re earning more. As the Fed increases interest rates, and as your Treasury bills mature and roll over into new issues, your interest will rise.
Unfortunately, the system does not allow for custodianship of IRAs. You can buy a 6-month CD in a bank inside your IRA. Just search at for the bank paying the highest rates on FDIC insured certificates of deposit.

Sadly, very few banks are paying anything like T-bill rates, now nearly 2.5 percent for 6 months, because most consumers aren’t as smart as my readers — and don’t know about TreasuryDirect!

But if you open your IRA at Vanguard or Fidelity and choose their “Treasury-only” Money Market funds, you’ll currently get a yield slightly over 2 percent.

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