Quote:
Originally Posted by Xist
Someone calling itself Sadafrat on Imgur mentioned: "If you can commit to not needing your money for 4 weeks, there are better rates buying Treasury bills directly at Treasurydirect.gov." Somebody replied "I am seeing an average of 3.27% discount for a 91-day bill: https://www.bankrate.com/rates/inter...asury/treasury bills."
I fear that I need someone to explain it with hand puppets. |
Nothing that complicated about it. T-Bills are just bonds sold by the USA government. You loan them money - they agree to pay you back with interest.
I'm not sure why you would want any T-bill at the moment as the best rate is 4.15% while an I-Bond pays more than double that.
The only bad thing about an I-bond is that you can't sell it and get back your money for 1 year. After that you lose 3 months interest if you cash them in early. After 5 years there is no penalty.
Well that and you can only buy $10,000 of I-bonds a year per person.