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Originally Posted by Russell
Thanks for the info Sweeps and Good2save - its definitely worth looking into specially in CA where I'm in the 9% tax bracket!
So I'm assuming the rates change each day and you lock in those rates for the term they're offered for ? I can see how that will quick become hard to keep track of if you were to buy $1k T-Bills every so often. BTW, I looked at TresuryDirect.gov and didn't see the rates listed I probably need to login. I actually opened an account with them for the I Bonds but never used it so maybe I'll login with that account and see if I can buy T bills with it.
Also, are these inflation protected like the I-Bonds ?
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The auctions are held each week. 13 week and 26 week T bill auctions are held on Mondays and 28 day auctions are held on Tuesdays on every week. You must place your orders before 12PM EST on those auction days. The T-bills are then issued on Thursdays of the week and your funds from your bank account are debited on Thursdays.
You can find the t-bills investment rates and the auction results on
http://wwws.publicdebt.treas.gov/AI/OFBills
I-Bonds rates comprised of a fixed interest rate and the CPI-U rate which is adjusted every six months. I Bonds are 30 year bonds and you have to keep it a minimum of 1 year. You are allowed to withdraw from year 2 to year 5 with last 3 months interest penalty.
More info can be found on:
i-bondrate.com
Jeffrey has a great article regarding I Bonds on the homepage of savingadvice.com.
T-Bills rates have no inflation protection built in but are more liquid.