2008 4-Week T-Bill Rate Update

It has been a long time since I updated 4-week T-bill rates late time (almost a year). The main reason for this once my favorite investment tool being totally abandoned is that, well, there isn’t much to buy right now. The bills are still being offered every week, but the rates has been terribly low as shown in the following plot. Especially since the collapse of Lehman Brothers, the rate tumbled to close to zero as flying to quality stirred up demands for safe heaven and pushed rate even lower.

As I mentioned early when I talked about how to keep our money safe, there are better options out there to let my money grow a little faster than investing in Treasury bills (safety is our goal, but not the only one).

If you are interested in buying T-bills, check out the complete process on how to get started. You can also  use this T-bill rate calculator to calculate your returns, including your equivalent yield based on your state income tax level.