Buy Treasury Securities at $100 Minimum

Do you invest in Treasury bills, notes, and bonds?

If you do, then there’s a good news. Starting early this week, Treasury Department has lowered the minimum purchase from $1,000 to $100. The change applies to Treasury bills, notes, and bonds with maturity from 4 weeks to 30 years, which means that 4-week T-bill is also included. I used to buy 4-week T-bills as short-term investment, but stopped last summer as the rates tumbled.

Now that Treasury securities are more affordable, will you plan to take advantage of change and buy “the world’s safest, most liquid investments”? I probably won’t. Affordability alone won’t make an investment a good choice. With 5-year notes at 2.595% and 10-year bonds at 3.510% (TreasuryDirect data), I’d rather keep my money in an online savings account that pays 3.28% APY (IGoBanking) and let me get my money at any time without a penalty :)

The Wall Street Journal yesterday has an article yesterday discussing ways individual investors use Treasury securities to build bond portfolio themselves. Check it out if you are interested in doing so.

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One Response to “Buy Treasury Securities at $100 Minimum”

  1. Roman |  Apr 14, 2008 at 10:35 am

    I don’t think that anyone wants to have bonds right now. Like yourself we are finding better rates online and other less know methods. check out my last few posts they have ways of getting 5 and up. depending on how much risk you are willing to take.