Bond
Pull the Plug on T-Bill Purchases
I have been watching the movement of 4-week T-bill rates for a while and considering making adjustment of my investment more than a month ago, but didn’t really do I felt was the right thing to do until last night when I finally canceled all the pending purchases.
The latest auction of T-bill gave investors a [...]
2007 4-Week T-Bill Rate Update
The rates of 4-week T-bills tumbled in recent weeks, dropping nearly 50 basis points in a matter of four weeks. The investment rate from last week’s auction is 4.683%, equivalent to a 4.79% APY.
Even when factoring in the NJ state income tax, the equivalent yield is only at 5.11% APY, falling quite far behind [...]
How to Invest in 4-Week T-Bills: The Complete Process
The following questions were left at my recent post on 4-week T-bill rate:
When the 4 week period is over what happens to the money invested? Do you reinvest the money along with the interest earned ? Also what kind of tax document do they provide (1099 etc) and does that show the details for all [...]
Year-to-Date 4-Week T-Bill Rates and Current Online Savings Rates
Since the start of 2007, the rates of 4-week Treasury bill have been on the rise. Last week’s auction set the latest investment rate at 5.247% APR. If this rate is converted to annual yield, the APY is 5.376%. Since interests earned from T-bill investments are exempted from state income taxes, the equivalent yield (EAPY) [...]
The Big Fat Check is Here and My Spending Plan is
1. Boost my 4-week T-bill purchases from $12,000 a month to $24,000 a month.
The latest T-bill rate (March 1, 2007) is 5.267% APR, equivalent to a 5.40% APY. Considering that the interests earned from T-bill investment are exempted from state income taxes, the effective annual yield is as high as 5.77%, a rate that [...]
2007 4-Week T-Bill Rate Update
As some popular online savings banks recently slashed their rates (GMAC from 5.25% to 5.00%, Citi e-Savings from 5.00% to 4.75%), the rates of 4-week were on the rise, at least in the first month of 2007.
The rate ended 2006 at 4.742% APR. On January 30th, the rate of 4-week T-bill was 4.972%, which [...]
2006 4-Week T-Bill Rates: The Complete Picture
Here's a complete chart of the 4-week T-bill rates of 2006. Overall, the rates were on the rise throughout the year. It was just above 4.0% when 2006 began, gradually moved up and peaked at 5.263% on November 30th, and ended the year with a 4.742% APR, a 17.6% annual increase in rates.
The sharp [...]
Lastest 4-Week T-Bill Rate at 5.243%, Highest of the Year
The auction of last week's 4-week T-bill set the rate at the highest level of the year. Even without considering the equivalent taxable yield, the rate of 5.243% APR almost matches what GMAC bank has to offer (5.30% APY with $500 initial deposit).
At 5.243% APR, the annual percentage yield (APY) is 5.37%. Since interestes [...]
Update on T-Bill Taxable Equivalent Yield
Yesterday, a reader, goldsheet (Thanks!), posted a comment on my T-Bill Taxable Equivalent Yield, saying that the EAPY formula in the post is actually for itemized deduction and he/she also provided a formula for EAPY for standard deduction.
Indeed, the formula I gave is only for the calculation of EAPY if you itemize, which I automatically [...]
If You’re Coming from Saving Bond Advisor
I'd like to take this opportunity to welcome you to my diary and hope you find the information in my post "T-Bill Investment Rate: Is it APR or APY? And What Is Your Taxable Equivalent Yield?" useful. I will be very happy if the post, written with my best knowledge, can help you understand some [...]
