T-Bill Rollover
I purchased a $10,000 T-bill (through my checking account) with a 6-month rollover. After 6 months, the $10,000 came across as withdrawal from my checking account. I had insufficient funds and was charged $25.00. It then ran as a credit the next day. Is this a common occurrence? Can you explain to be exactly how the rollover usually work. Do I need funds in my checking to cover the amount of rollover or this a banking issue. Thank you!
Terry Says
I have no idea why that would have happened. At your original purchase, they withdrew slightly less than $10,000 — leaving the interest in your checking account. If you did an automatic rollover, the next period’s interest should have dropped into that checking account — while Treasury kept the balance. This looks like a bank error! Please follow through with them and let me know what happens.
