Treasuries vs Brokered CDs
Hi Terry!
Fidelity lets one buy online (without fees) both new issue brokered CDs as well as Treasuries at auction. If the rates for brokered CDs and Treasuries are the same, aren’t Treasuries a better option (given that interest is state tax free)? Is there any drawback to buying Treasuries as opposed to Brokered CDs in this case, assuming they are held to maturity?
Thanks!!!
Terry Says
I prefer the T-bills for the reasons you stated. I’ll be surprised if you don’t get a higher rate from the T-bills — a bit higher– than the brokered CDs.
