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Re: Max [maxmyinterest.com]

Posted: Sat Jul 14, 2018 10:23 am
by pugchief
Here is a really good tutorial on buying T-bills at Fido, complete with diagrams.

https://thefinancebuff.com/treasury-bil ... arket.html

Re: Max [maxmyinterest.com]

Posted: Mon Jul 16, 2018 12:01 pm
by jhogue
I like using Fidelity to buy and own T-bills directly. It completely avoids the manager risk associated with ETFs and mutual funds. Also, the expense ratio (0.00% !!!) simply cannot be beat.

When I first started buying T-bills, I wondered if Fidelity might be tempted to pump up the bid/ask spread to pay for this free service. As far as I can tell, that is not the case. I occasionally check the spread and have found that it hovers around 0.03% for a current 1 year T-bill.

I don’t know for sure, but I am guessing that Fidelity can make this deal available for small retail investors because they have to hold a massive amount of T-bills to support their many mutual funds and other investment products. Perhaps some demand is also be coming from their institutional investors for whom the FDIC cap of $250,000 makes CDs unsuitable.

Re: Max [maxmyinterest.com]

Posted: Mon Jul 16, 2018 12:52 pm
by ochotona
I can't wait! Big slug of dough coming out of Marcus to Fidelity. Maybe tomorrow.

Re: Max [maxmyinterest.com]

Posted: Mon Jul 16, 2018 1:05 pm
by pugchief
ochotona wrote:
Mon Jul 16, 2018 12:52 pm
I can't wait! Big slug of dough coming out of Marcus to Fidelity. Maybe tomorrow.
The auctions are on Monday. You may have to wait until next week if you are buying new issues.

Re: Max [maxmyinterest.com]

Posted: Mon Jul 16, 2018 2:06 pm
by ochotona
Fidelity posts the T-Bill offers after 2 pm Eastern on Thursdays. I bought some secondary market Bills today.

Re: Max [maxmyinterest.com]

Posted: Mon Nov 19, 2018 7:55 pm
by ochotona
Ally paying 2% now