T Bills

By Terry Savage on September 26, 2023 | Chicken Money

I’ve invested in T bills and indicated I would like 2 automatic renewals. My first T Bill matured and renewed with the same PAR value as the original, meaning the interest was sent to my bank funding account. Can I change the PAR value on an upcoming renewal so as to reinvest the dividends from the original T Bill that’s maturing? Maybe the only way to do it would be to not allow it to renew, have the proceeds deposited in my funding account, then repurchase a new T Bill with the new PAR value that includes the interest I received on the first T Bill? It would be much easier if I could specify a new PAR value before maturity. Thank you for your help!!

Terry Says

No, you can’t do that. Just auto-renew the existing investments and keep the interest in a money market account until you gather up enough money to buy another T-bill.
You’re actually getting the interest “in advance” which boosts your return a bit!



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