Treasury Bills
I heard you on WGN Morning News, suggest buying treasury bills, so I bought a 26 week one for $5000 in December. I noticed that my bank account now is $5000 more than it was a week ago. So in 26 weeks time it didn’t gain or lose anything? Thanks!
Terry Says
Ha! You got your interest “up-front” — when they withdrew slightly less than the $5,000 — leaving the interest in your bank account. Go back and take a look at that initial withdrawal back in December of last year.
At maturity, the entire $5,000 is refunded. That gives you a chance to buy another $5,000 T-bill. This time, specify an automatic renewal, and only the interest will drop back into your account at maturity, while the principal rolls over, getting the then-current rate.
