T-Bills

By Terry Savage on July 22, 2024 | Chicken Money

Hi–Could provide on one of your WGN appearances some information on the role that auctions play to determine T-bill rates. I’ve staggered my purchases for the last few years using the CNBC rates. But my most recent purchase, which on the rates page showed a little over 5 percent was not that, and was about half of what my discounts have been. I was told it had to due with the auctions. Thanks!

Terry Says

Read this:  T-Bills beat CDs – Terry Savage   This is the ONLY way to purchase T-bills — and you get the “average” auction rate at the auction held every Monday.  Do NOT do this through your brokerage firm.  You must open your own account at TreasuryDirect.gov per the article.  BUT, you cannot do this inside an IRA, except through the brokerage division of your custodian.  The Treasury does not act as custodian for IRA accounts.

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