4 week T-Bills paying 4.471 and no state taxes

[CJsoccerchic]

Re: 4 week T-Bills paying 4.471 and no state taxes

(example: So, I give treasurydirect.gov $990 for 28 days, then after the 28 days, they'll deposit $1000 into my account? or will they open up another T-bill for me automatically?)

[CJsoccerchic]

Re: 4 week T-Bills paying 4.471 and no state taxes

.........

[goodtosave]

Re: 4 week T-Bills paying 4.471 and no state taxes

(example: So, I give treasurydirect.gov $990 for 28 days, then after the 28 days, they'll deposit $1000 into my account? or will they open up another T-bill for me automatically?)

TreasuryDirect.gov will not automatically purchase another t-bill for you unless you tell them to. You can do one time purchases or you can schedule repeat purchases for up to 5 years. For each purchase and upon the maturity of the t-bill, you can instruct for the funds to either be transferred back into your bank account or to remain in the TreasuryDirect Zero Percent C of I account. The Zero Percent C of I account are used for repurchases purposes. You don't want your funds to sit in the Zero Percent C of I as it earns 0% as it name implies.

Hope that helps.

[goodtosave]

Re: 4 week T-Bills paying 4.471 and no state taxes

I started investing in T-bills about a month ago and are very happy with the investment rates.

I do have a word of CAUTION.

Bank accounts are governed by Regulation E(handed down by OCC a division of Treasury Dept.) which limits your losses against fraudulent and unauthorized access. Keep in mind that FDIC insurance DOES NOT PROTECT against fraudulent and unauthorized access.

TreasuryDirect.gov have no liability protection for the consumers if your account is compromised using your login and password. Here's what the security policy reads:

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Regulations governing TreasuryDirect (31 CFR Part 363) state the following regarding liability and unauthorized access:

Who is liable if someone else accesses my New TreasuryDirect account using my password?
You are solely responsible for the confidentiality and use of your password. We will treat any transactions conducted using your password as having been authorized by you. We are not liable for any loss, liability, cost or expense that you may incur as a result of transactions made using your password.

Is Public Debt liable if the electronic transmission of my data is intercepted?
We are not liable for any interception of electronic data or communication.

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I have confirmed this with some folks at the Treasury Dept. It is a little distressing to note that the Treasury Dept. imposes a much stringent rules on the banks it governs than on itself.

I would like to hear back from anyone who's familiar with the liability policies for treasurydirect.gov.

[CJsoccerchic]

Re: 4 week T-Bills paying 4.471 and no state taxes

So my example is on par? The giving of X amount will yield 1000$ after a set amount of time (because you can only purchas ein increments of 1k, right?

_____
and other question - Treasurydirect does not have a good security system set in so that users can feel safe logging in and out?

[goodtosave]

Re: 4 week T-Bills paying 4.471 and no state taxes

Yes. That is correct.

[CJsoccerchic]

Re: 4 week T-Bills paying 4.471 and no state taxes

thanks goodtosave! Now, I understand a bit more!

[stngymama]

Re: 4 week T-Bills paying 4.471 and no state taxes

Having just learned about TBills from aother thread (http://www.savingadvice.com/forums/s...ad.php?t=16937) I thought I'd ask a simple follow up here:
Do they tell you the maturity date when your acct is debited for a TBill purchase, and could you time it automatically so that, using the 0% holding acct, you could keep reinvesting that same original $1(whatever)K with little or no waiting/stagnation period? or Do the Tbills mature such that you couldn't do an automatic turn around? e.g., funds get deposited hours/days after you would have had to purchase (with the original investment, not the interest) for the next auction....??? AmI overthinking this?

[goodtosave]

Re: 4 week T-Bills paying 4.471 and no state taxes

Having just learned about TBills from aother thread (http://www.savingadvice.com/forums/s...ad.php?t=16937) I thought I'd ask a simple follow up here:
Do they tell you the maturity date when your acct is debited for a TBill purchase, and could you time it automatically so that, using the 0% holding acct, you could keep reinvesting that same original $1(whatever)K with little or no waiting/stagnation period? or Do the Tbills mature such that you couldn't do an automatic turn around? e.g., funds get deposited hours/days after you would have had to purchase (with the original investment, not the interest) for the next auction....??? AmI overthinking this?

The maturity date is shown in the confirmation page of your purchase. And you can schedule the recurring purchase out of the zero percent C of I account for up to 5 years. On the maturity date, the funds will be deposited and then debited out of the C of I account. And you don't lose any days of interest. Apparently, they have scheduled all these auctions in a way that the payment and the purchase dates all coincide. Even though you have to buy the 4 week t-bills on a Tuesday, the actual purchase date is on a Thursday which coincides with the maturity date.

Hope this helps.

[stngymama]

Re: 4 week T-Bills paying 4.471 and no state taxes

Hope this helps.

Yes, Thank you very much!