UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Author: blearynet Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35365  
Subject: T bill yield vs. MM,CD Date: 10/14/2007 2:10 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
It appears that the current yield on 3 and 6 month t bills is so low that I am actually better off using the Vgd or Fid money market accounts, or buying a 6 month CD. Even though my state tax rate is 9.3 percent and T bills are not subject to state taxes, this still appears to be true. Am I missing something ? This seems very weird.
Print the post Back To Top
Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21840 of 35365
Subject: Re: T bill yield vs. MM,CD Date: 10/14/2007 9:15 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
t appears that the current yield on 3 and 6 month t bills is so low that I am actually better off using the Vgd or Fid money market accounts, or buying a 6 month CD. Even though my state tax rate is 9.3 percent and T bills are not subject to state taxes, this still appears to be true. Am I missing something ? This seems very weird.

I don't think it is wierd. There are different markets at work. Even high state taxes only make a difference of a few basis points (in your case around 40 basis points).

Print the post Back To Top
Author: Wradical Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21841 of 35365
Subject: Re: T bill yield vs. MM,CD Date: 10/14/2007 2:45 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
It appears that the current yield on 3 and 6 month t bills is so low that I am actually better off using the Vgd or Fid money market accounts, or buying a 6 month CD. Even though my state tax rate is 9.3 percent and T bills are not subject to state taxes, this still appears to be true. Am I missing something ? This seems very weird.
________________________________________
You're not missing much. It IS weird. Short term rates are kind of weird right now.

I don't go shopping at a lot of banks for CDs right now.
But at my regular bank, the MM index account is better than the short-term CDs, except for an odd-term 7-mo. CD.

The last CD I bought was a 3-mo. CD from Washington Mutual, thru my brokerage acct. at Fidelity.

Bill

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Advertisement