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Message
re: Buying T-bills on Treasury Direct
Posted on 10/24/23 at 9:33 pm to bovine1
Posted on 10/24/23 at 9:33 pm to bovine1
quote:
I like buying them through Vanguard and Schwab. It's simple and easy unlike my experience with TreasuryDirect. Vanguard also gives you a projected rate a day or two before the auction.
Vanguard has new issue tbills now? Last I checked about a year ago they were only available through the secondary market.
2
Posted on 10/24/23 at 9:36 pm to Twenty 49
quote:
I bought some 4 week bills via Treasurydirect just to test it. Worked fine, so I made another buy and told it to reinvest every 4 weeks several times (I think 2 years is the max). Each time they turn over, the interest earnings is automatically deposited in my bank account.
If you buy through a brokerage, though, the interest is automatically posted to a high yielding money market. So there’s no lag if you want to earn interest on interest.
Posted on 10/24/23 at 9:56 pm to BourbonDad
Are we talking about brokerage risk? If a brokerage goes down, the funds still contain the underlying assets of that fund.
Posted on 10/24/23 at 10:12 pm to SaintsTiger
quote:
Does Fidelity have auto roll? If so, does the interest paid every renewal automatically go to a money market?
Yes Fidelity does have auto roll for new auctions. When a t-bill matures, the proceeds go to whatever is designated as your "core" position for the account. This could be a money market or a cash like option.
Posted on 10/24/23 at 10:15 pm to SaintsTiger
quote:
Vanguard has new issue tbills now? Last I checked about a year ago they were only available through the secondary market.
The major brokerages (Fidelity, Schwab, Vanguard etc) all support buying t-bills at auction.
Personally I prefer buying on the secondary market. You know upfront what yield you will get and can pick the maturity date that matches your need. Also, you don't have to wait for an auction date.
Posted on 10/25/23 at 12:46 pm to wiltznucs
quote:
Treasury Direct is a PITA…
It’s not as bad as it used to be. I use it and it’s pretty easy.
Posted on 10/28/23 at 3:18 pm to SaintsTiger
Yes I've been buying them at auction for several months.
Posted on 10/28/23 at 3:21 pm to bovine1
The dealers on Vanguard started requiring large minimum purchases so I started buying at auction. Vanguard does give you projected yields. Vanguard Federal is paying 5.29% right now so I don't mind waiting a few days after I place the order.
Posted on 10/28/23 at 6:09 pm to Herecomethehawks
quote:
I am new to this...just made a treasury direct account.
One difference between Treasury Direct and the major brokerages (for new issues) is that on TD you can purchase in $100 increments. Whereas most of the brokerages require $1000 increments… if that makes a difference to you.
Posted on 10/29/23 at 7:23 am to Herecomethehawks
Honest question because I don’t know…what’s the difference between a t-bill and a CD? Rates seem to be around the same?
Posted on 10/29/23 at 12:05 pm to BabyTac
In addition to the offering entities and their associated credit backing, Treasury securities are not subject to state and local taxes, whereas CDs generally are.
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