tbill rollover or savings account
Terry, I’d either rollover a $120K tbill a fourth time (26 weeks) this December OR our banker has a savings account rate of 3.51% good for 6 months. Can I roll the tbill into a 16 week? It would be necessary for us to have this money readily available at the 16 week period. Thanks!
Terry Says
There are only 13 and 26 week T-bills to purchase through TreasuryDirect. So if you are going to need the money sooner, you’d let the T-bill mature and drop back into your bank account, a money market account. Currently 6-month t-bills are yielding 3.8%. 3-month T-bills yield slightly higher. And no federal income taxes on the interest.
So it’s a call you’ll have to make if you think you will need the money before the next purchased T-bill would mature.
