Best CD, MM Rates & Bank Special Deals Thread 2022 - Please post updates here

[jim584672]

The spreads are very small to buy in the secondary market. Would much rather have it in a brokerage over Treasury Direct.

 

[explanade]

Compared to Treasury Direct - no, you are getting exactly the same auction prices plus the auto roll option. Fidelity is buying them for you at each auction and not charging extra. These are at a set time and day each week.
You can see upcoming auctions and results here: https://www.treasurydirect.gov/instit/instit.htm?upcoming

On the secondary market, any Fidelity commission or fees is part of the buy/sell spread and they trade continually during regular bond market hours.

The spreads are very small to buy in the secondary market. Would much rather have it in a brokerage over Treasury Direct.

OK so if I purchase something on Fidelity which is under 100, then I buy say 1,000 or 10,000 and it would be $9850 or $98500 and in a year, I'd get back $10,000 or $100,000 in a year, just as I would at TD?

I didn't create a TD account but I didn't see a way to browse for instruments like you can at Fidelity, though I was logged in over there.


And just to clarify, anything 1 year or shorter is a Treasury Bill, I think 2 to 10 years maturity is a Note and anything longer is a Treasury Bond?

 

[audreyh1]

Fidelity sells new issue treasuries in units of $1000. So if you bought the 52 week bill at auction last week, say quantity 10, you would have paid $9,810.9222, and will get $10,000 back at the end of a year, just like at Treasury Direct. Plus you can sign up for the Fidelity Auto Roll feature which automatically rebuys the same bill/note at maturity.

The TD page which is most useful regarding treasury auctions IMO is the link I gave above. No login required. https://www.treasurydirect.gov/instit/instit.htm?upcoming

 

[jim584672]

And just to clarify, anything 1 year or shorter is a Treasury Bill, I think 2 to 10 years maturity is a Note and anything longer is a Treasury Bond?

Yes, at original issuance. Notes and Bonds can be approaching maturity and be under one year.

 

[almost there]

Is there an advantage to a Treasury Bill, over say a 1 yr CD at 2.1%?
Thanks!

 

[audreyh1]

Is there an advantage to a Treasury Bill, over say a 1 yr CD at 2.1%?
Thanks!

Whichever is yielding more for the same duration at the time. Both are backed by US govt assuming FDIC on the CD.

 

[almost there]

Thanks. Looks like its 2.04% V.S 2.1% today.
Basically the same rate.
Thought there may have been something I wasn't aware of.
Thanks again

 

[Dash man]

Thanks. Looks like its 2.04% V.S 2.1% today.
Basically the same rate.
Thought there may have been something I wasn't aware of.
Thanks again

You don’t have to pay state income tax on treasuries.

 

[almost there]

Good to know!
Shopping for IRA fixed income right now.
But did not know that. Have some cash CD's due in 2024.
Will ck it then.

 

[Sunset]

I just canceled all my Ally No Penalty CDs at .55% and reopened them at .70%. Takes a second.

Thanks for mentioning this, it motivated me to look and it was easy to cash in my Ally No Penalty CDs. Could do it all online.
Previously a person had to phone in.

So 5 minutes later, they were all cashed and earning .60% in the savings account (while I decide what to do) instead of earning .55% and .50%
DW did the same thing.

 

[Dash man]

Just picked up a one year treasury from auction at 2.164%. Not too bad.

 

[pb4uski]

^^^ No, not bad at all.

 

[nwsteve]

I was delighted to get 2.52 on a Fed Home Loan with 9/23 maturity. Replaced Ally no penalty cd of .55-.60

Update--not sure yet what happened--offered ask price and took 25% more than min lot but order got cancelled. Maybe dealer wants entire lot but not sure why show min at 40 and still reject order of 50??
This is an agency bond, anybody know why order should be cancelled ?

 

[aja8888]

I noticed one can buy treasury bills at auction and have them automatically rolled over at maturity. Is their any advantage to doing this or is it generally done for convenience?

 

[Trailwalker]

I noticed one can buy treasury bills at auction and have them automatically rolled over at maturity. Is their any advantage to doing this or is it generally done for convenience?

I just do it for convenience in case I forget. If something changes, it's easy to get back in and change the number of renewals.

 

[aja8888]

I just do it for convenience in case I forget. If something changes, it's easy to get back in and change the number of renewals.

Thanks, that is my thinking also. I can also build a short duration ladder and have income coming in each month of I set it up right.

 

[erkevin]

Marcus (Goldman Sachs) has raised its savings account rate to .7%

 

[Eucerin]

One year treasury above 2%, I assume you got it from secondary US treasury. I have been buying new short term treasury in Fido that issued on the weekly basis. I didn't see a 12month new treasury bill today in Fido, it looks like I have to buy it in the secondary market.
I fear to do so as I am afraid I would make mistakes. Currently there are 3 trades at rate 2.213, 2.226 and 2.229 that expires 5/31/2023. One of them that asks quantity 35k, limit price 100.568. Can I buy more than 35k? the limit price is over 100 while others under 100, what's that mean?

 

[Dash man]

One year treasury above 2%, I assume you got it from secondary US treasury. I have been buying new short term treasury in Fido that issued on the weekly basis. I didn't see a 12month new treasury bill today in Fido, it looks like I have to buy it in the secondary market.

I fear to do so as I am afraid I would make mistakes. Currently there are 3 trades at rate 2.213, 2.226 and 2.229 that expires 5/31/2023. One of them that asks quantity 35k, limit price 100.568. Can I buy more than 35k? the limit price is over 100 while others under 100, what's that mean?

I bought it in my Schwab brokerage at auction. I get emails from Treasury Direct informing me of upcoming auctions. I saw one for today and yesterday put in an order in my Schwab account for a $10,000 one year treasury. I got an email with the auction results and a little while later it was in my account. Couldn’t be any easier.

 

[explanade]

One year treasury above 2%, I assume you got it from secondary US treasury. I have been buying new short term treasury in Fido that issued on the weekly basis. I didn't see a 12month new treasury bill today in Fido, it looks like I have to buy it in the secondary market.
I fear to do so as I am afraid I would make mistakes. Currently there are 3 trades at rate 2.213, 2.226 and 2.229 that expires 5/31/2023. One of them that asks quantity 35k, limit price 100.568. Can I buy more than 35k? the limit price is over 100 while others under 100, what's that mean?

I bought it in my Schwab brokerage at auction. I get emails from Treasury Direct informing me of upcoming auctions. I saw one for today and yesterday put in an order in my Schwab account for a $10,000 one year treasury. I got an email with the auction results and a little while later it was in my account. Couldn’t be any easier.

What are the mechanics of those transactions through brokerages?

You search by CUSIP number?

What are the denominations of these 1-year Treasury bills, $100 so you'd be paying less than $100 for each?

Then at maturity, you will get however many $100 (or whatever denomination) bills you bought as the value of those holdings?

So say you paid $9,850 worth and at maturity, your Fidelity or Schwab account will show $10,000 as the balance?

Does Fidelity or Schwab impose fees or commissions?

Then they issue you a 1099-G or something like that at the end of the year?

 

[Dash man]

Best CD, MM Rates & Bank Special Deals Thread 2022 - Please post updates here

What are the mechanics of those transactions through brokerages?
You search by CUSIP number?
What are the denominations of these 1-year Treasury bills, $100 so you'd be paying less than $100 for each?
Then at maturity, you will get however many $100 (or whatever denomination) bills you bought as the value of those holdings?
So say you paid $9,850 worth and at maturity, your Fidelity or Schwab account will show $10,000 as the balance?
Does Fidelity or Schwab impose fees or commissions?
Then they issue you a 1099-G or something like that at the end of the year?

Schwab has an option to search for new issues. You have to invest at least $1,000 and more in $1,000 increments. The email announcement I get from the Treasury does give the CUSIP code that you can search on if you prefer. The treasury bill cost me $9,787.67 and I will receive $10,000.00 in one year from tomorrow. There are no fees or spreads for Treasuries bought at auction. I expect I’ll get a 1099INT if I hold the bill through maturity, which I expect to do.

 

[explanade]

Schwab has an option to search for new issues. You have to invest at least $1,000 and more in $1,000 increments. The email announcement I get from the Treasury does give the CUSIP code that you can search on if you prefer. The treasury bill cost me $9,787.67 and I will receive $10,000.00 in one year from tomorrow. There are no fees or spreads for Treasuries bought at auction. I expect I’ll get a 1099INT if I hold the bill through maturity, which I expect to do.

Thanks for the answers.

How do you tell if you're buying at auction vs. secondary market?

Are there fees for purchasing through the secondary market?

 

[disneysteve]

I just picked up 3 and 6-month treasuries for 1.129% and 1.455% for 25K with money that had been sitting in Ally. Beats the 0.6% it was earning there.

 

[DawgMan]

Beats the 0.6% it was earning there.

Funny, just as I read your post I got an email from Marcus saying they are bumping my rate to .7%

 

[disneysteve]

Funny, just as I read your post I got an email from Marcus saying they are bumping my rate to .7%

Nice, though I'll still take the 1.129 and 1.455 with the T-bills even if Ally follows suit and goes up to 0.7. I don't need this money anytime soon. We've still got plenty of liquid cash for emergencies.