Ask Terry Questions treasury bills

treasury bills

By Terry Savage on August 11, 2021 | Chicken Money

Hi Terry,
I have heard you speak on the radio about the benefits of having treasury bills such as no state income tax. We are very heavy in cash and need to put money somewhere to earn more interest than in our high yield savings acct. which is yielding 0.50% annually. We already are heavily invested in the stock market. When I tried to find things about treasury bills on this website by using the magnifying glass, nothing came up.
I appreciate your advice and enjoy hearing you on wgn radio.

Terry Says

I’m thinking you didn’t search my columns for the words Treasury Bills. You would have found this article
from two years ago!

At that point, T-bills were yielding more than bank CDs. Today it’s about the same, or perhaps a little less interest on T-bills. But you have the safety of adirect IOU from the Federal government. If you’re searching for higher yields, you’re definitely taking more risk (although you might not see it at this time).

The Fed is punishing savers by keeping rates low — even lower than inflation. That will end one of these days!

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