I started investing in T-Bills back in the 80's. At that time you had to invest $10,000 for one. Now they start at $100. The common ones are 13 week and 26 week. There are also 4, 8, 17, and 52 week Bills. When I started I needed a car, so I bought a 90 day T-bill which payed 16% interest and financed the car for 2%. It was great !
Treasury bills can be bought directly from the government for as little as $100 by participating in one of its regular T-bill auctions. To do so, you must first set up a TreasuryDirect account and select the BuyDirect tab to choose the specific bill and amount to purchase.
Banks and institutions sell them also .... Forget those places, when I started I checked the local bank fees, $25 to buy one and $25 for renewal. You are getting hosed real bad. Back then I bought with a 20 cent stamp from the federal Reserve Bank Detroit MI. Now all purchases are electronic. Just set up a Treasury Direct Account and you are good to go.
I buy 90 day T-bills and stagger them monthly so as they raise the interest rate you catch the rise every month somewhat. This was August 14 auction price on 13 week bills.
Term: 13-Week
High Rate: 5.295%
Investment Rate*: 5.456%
Price: $98.661542
You do not have to pay any State tax from the income on them and if you want to you can have a percentage deducted for tax if you wish. I have one account set up at my financial place just for the income from T-Bills and to buy from.
Once you get started I am sure you will be happy. If you do not have a renewal set up on your bill at expiration time it just flows back into your financial account.
Good luck
Ed
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Oh ..... I forgot to mention when you buy do the "Non-Competitive Bid" ............. That's all !
Last edited by trapperEd; 08/26/23 01:09 PM. Reason: non-competitive bid
