What to put money into — CDs or Treasury Bills
Is a treasury bill like a CD in that it is a set rate for a specific amount of time?
Terry Says
Yes, that is exactly how it works. BUT you don’t know the rate before you invest in a Treasury bill. It will likely be relatively close to the previous week’s rate. But the rate is set at an auction on Monday — and the auction participants are the big banks and dealer banks. You agree to accept the average rate set at the auction. The rate is fixed for 3 months, 6 months, or a year. The you can have the T-bills automatically rolled over at the then-current rate. Please read my column on How to Buy Treasury Bills.
