Time to Reconsider 4-Week T-Bill Purchase?
Post viewed 408 times, 1 so far today
Exactly one month ago, I canceled our $3000 weekly 4-Week T-Bill purchase after the interest rate dropped to 4.757%, far less than the 5.15% APY we earned from EmigrantDirect at that time.
In the past month, we have seen changes on both the banking and T-Bill fronts and the new developments made me wonder if it's time to bring back the T-Bills into our savings. First, EmigrantDirecte cut its interest rate to 5.05% at the end of September. And almost at the same time, the interest of the T-Bill reached a low of 4.624% on September 28th. Since then, the rate has rebounded nicely, and the latest auction on October 12th set the APR at 5.038%, virtually identical to what EmigrantDirect offers.
However, as interests earned from T-Bills are exempted from state income taxes, the T-Bills work out slightly better than savings at EmigrantDirect. Of course, since the T-Bill interest only passed the 5% mark once in the latest auction, whether or not it will stay there is not clear. In addition, recent government reports painted a moderate inflation picture and that will not help pushing up the rates.
I will keep an eye on the rate changes and decide when to jump in again.
Click here to see the historical rates of 4-week T-Bills and other Treasury products.
If you enjoyed reading this post, please consider subscribing to my full RSS feed (What's RSS feed?). Or you can also choose to have free daily updates delivered right to your inbox.
Featured Financial Products
- Earn up to 5% cash back from these cash back credit cards while shopping at gas stations, grocery stores, or online.
- Buy stocks at TradeKing at a flat $4.95 commission per trade. Check out the TradeKing review and use these TradeKing promotion codes to open an account.
Check Out These Related Articles
- 2007 4-Week T-Bill Rate Update
- OK, I’m Cancelling My T-Bill Purchase
- More T-Bill Purchases
- 2007 4-Week T-Bill Rate Update
- Lastest 4-Week T-Bill Rate at 5.243%, Highest of the Year
Share Your Thouhgts
Your opinion matters. Please use the form below to share your thoughts on Time to Reconsider 4-Week T-Bill Purchase? with us.Recent Entries
- Weekend Linkage - September 7, 2008
- American Express TrueEarnings Card $25 Bonus
- Unemployment Rate Reaches Five-Year High
- Chinese ADRs Monthly Update - August 2008
- Commodities Make It and Commodities Break It
- HSBC Weekend Card
- August 2008 Score Card — Part I: Net Worth
- Weekend Linkage - September 1, 2008
- More Disturbing Facts on Banks
- Authorized Users Will Be Allowed in FICO Score Calculation
- Reminder: $70 TradeKing Bonus Still Available
- FDIC Problem Banks List Grew to 117 Last Quarter
- DollarSavingsDirect: A High Yield Version of Emigrant Direct
- Financial Tips for College Students
- WTDirect Terminates Promotion After Only Three Days
- Did You Miss These Freebies?
- Google Beijing Olympic Logos: How Google Celebrated the Event
- WaMu Promotion: 5.00% APY for 12-Month Online CD
- WTDirect Promotion: Up to $250 Sign-On Bonus
- American Eagle Gold Coin in Short Supply?
- Boy, Was I Wrong on FRE
- Avoid These Unhealthy Kid Foods
- Suze Orman FICO Kit 20% off Sale
- Poll: Do You Save in 401(k) Without Company Match?
- Weekend Linkage - August 17, 2008





Comments
No comments yet, but your thoughts are always welcome.