T-bills treasurydirect — didn’t take out the entire $10,000
Terry, Thanks for the great advice every week on your homepage and on WGN Wed noon talks!
I bought $10K in T bills from treasurydirect.gov in early October. Just saw that my bank statement was only debited for about $980, not the full $10K. Do you know why? The FAQs are not avail on treasurydirect.gov (get “error 404 not found”).
Thanks in advance for your help!
Terry Says
That’s correct. The difference is the interest you will earn for this T-bill. You get your interest “up front” — so you can invest the interest in a MM fund and earn even more! That’s the way T-bills work. If you signed up for an automatic rollover, when they renew, the interest will be credited back to your bank account the very same day — in advance of the new 6-month period!
