Gyroscopic Investing

I have a couple of CDs at my excellent local credit union where current 6 and 12 month rates are 1.0 and 1.10% respectively. I’m tempted to buy more given the other options I have: Schwab’s high ER Treasury MM fund paying nothing or an ultra short ETF like BIL.

Any recommendations?

Bil is paying near zero

So I supposed it'd be prudent to split the funds since (as I understand it) the treasuries in BIL are still safer than NCUA insured CDs?

last i noticed bil had a negative interest rate

"30-day SEC Yield AS OF 05/01/2020 -0.05%"

Thanks mathjak107!

I'm the heretic here, I think if you don't need the liquid cash, go for the CDs but only if it's an "A" rated institution.

https://www.depositaccounts.com/banks/health.aspx

The yield of a 1 year T-bill has collapsed with the Fed’s massive monetary intervention and is currently hovering around 0.12% yield. Shorter maturities are flirting with negative yields. That explains why money market funds and short term ETFs are all stuck at the zero bound and likely will remain there for some time.

I bonds (now at 1.06%) are normally touted as part of a longer term, or “Deep Cash.” At the moment, though, they are also worth another look for short term investors. The current I-bond yield is competitive with your 1 year CD, but it offers you options you don’t get with a CD, like federal tax deferral, state tax exemption, inflation/deflation protection, and periodic rate resets. Plus, if you don’t like it at the end of a year, or find something better, you can just pay the 3 month penalty based on the CPI—which will probably be close to 0.0% next year, given deflationary trends in the US economy.
See:
https://treasurydirect.gov

I think that the real question is, what do you want this cash to do? And when will you need it?