Ask Terry Questions T-Bills – 4 or 8 week or longer?

T-Bills – 4 or 8 week or longer?

By Terry Savage on February 20, 2023 | Chicken Money

I have a lot of chicken money sitting in the bank making nothing. I will be house hunting soon and would like access to my cash this summer. Is there any reason not to invest in 4 week or 8 week T-bills vs the 26 week term? The payment rates are similar right now. I understand locking in longer terms likely will produce more optimal results, but feel like 6 month is too long for me.

FYI: I have bought the max amount in I-Bonds for ’22 and ’23. Thanks, as always, for your excellent advice.

Terry Says

Glad you got the I-bonds. And there is no reason not to do the 4 or 8 -week bills, except that the rate is so much lower. Is it worth it– or could you ask your bank about a higher paying money market deposit account, with immediate liquidity?

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