Which time period is best to use with T-bills?
I’ve been using the 4 week choice and every month they put the interest into my bank acct. and I roll over the investment. Is it better to chose a longer period or am I making the most money doing it monthly. I know the rates change but there isn’t a lot of difference between them. It seems to me that getting the interest paid every 4 weeks gives me more money than waiting longer for the interest payment.
Terry Says
No, you’re wrong about that. At this stage, the curve of interest rates suggests you’d be better off buying 6-month T-bills, on a staggered basis. Yes, the rates are about the same today. But that could change. And if the next direction is down, you’ll be glad you have some 6 month bills!