This week’s auction result put the interest rate of 4-week T-Bills at 5.146%, better than what EmigrantDirect and HSBC offer (5%). For second straight week, the rates are above 5%, making T-Bills more attractive now than a month ago. And I decided to jump back in again. Well, considering that I have only canceled the purchase for a month, I probably shouldn’t have stopped it in the first place.
Anyway, since I already have a TreasuryDirect account, restarting the weekly purchase process takes only a couple of minutes:
Login into your TreasuryDirect account and click on Buy Direct
Select Bills and continue to the next page;
Select 4-week from the Product Term drop down menu;
Enter the amount you want to purchase;
Select a source of funds. If you don’t have one, you can add a bank account (checking or savings). For me, I use HSBC;
Select repeat purchases with the number of purchases and weekly purchase frequency;
Enter the earliest Tuesday available to be the starting date and set Source of funds for future purchase to be the same as in Step 5;
Finally, select a destination for the following payments. Don’t select Zero-percent C of I as you won’t earn any interests with Zero-percent C of I. For me, I use HSBC.
Since the money is drawn from your bank account after the deposit from matured bills is made (if there is any), you only need $4000 in your account if you want to make repeat purchase of $1000 (minimum amount) every week.
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