State Tax. C.D. VS T-Bill
Hello Terry,
Thank you for all of your advice on T-Bills and I-Bond’s it helped my Wife and I a LOT!
I listen to you every Wednesday at Noon on WGN radio.
I found a cool tool on Fidelity which you already may know about, it is called “Taxable-Equivalent Yields.” It may help some of the listeners that live in a hight Tax state. I stumbled upon this trying to figure what actually is to my benefit factoring state tax on a C.D. vs T-Bill with no state tax.
Typically the lower T-bill offering, beats the C.D. with a higher rate. I hope this helps you or the listeners on WGN. Here is the web site one you are logged onto Fidelity: https://digital.fidelity.com/prgw/digital/taxyieldcalc/
Thank You!
Terry Says
Thanks, that’s a useful link for those considering tax-free municipals vs taxable bond yields.
For T-bills, I just always assume you’re better off NOT paying state income taxes on any of the income! And since T-bill yields have been higher than bank CDs recently, there’s not a lot of need to calculate.
