The Sun's Financial Diary

When 2007 began, the rates of the 4-week T-bill were very attractive, with returns as high as 5.4% APY. Before FNBO Direct launched their 6.0% APY promotional rate early last year, 4-week T-bills were my main short-term investment vehicle for the good returns and automatic investments that were very easy to manage. However, things started [...]

Where should I put my money? I was hoping that when the FNBO Direct 6.0% APY promotion ends in 10 days, I could go back to 4-week T-bills for short term investment. Well, it looks like that’s not going to happen any time soon as the investment rate of 4-week T-bill tumbled to 4.079% APR [...]

It has been nearly two month since I stopped purchasing 4-week T-bill, once my favorite short-term investment, when its rate dropped below the rates from my online banks in June. After touching the 2007 low of 4.422% APR on June 21, the T-bill has made a nice comeback in recent weeks. Yesterday’s auction set the [...]

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 [...]

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 [...]

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 [...]

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) [...]

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 [...]