I JUST asked a question seeking clarification regarding SPIC. I assume you see the same risk holding them with Vanguard (or, anyone else)? Outside of TreasuryDirect, how else can you buy / hold them? I assume you can mitigate the SPIC risk by holding them in more than one brokerage (as advised by Craig and Tex's book). Please elaborate on any other SPIC risks you see.drumminj wrote: ↑Wed Nov 27, 2019 1:07 pmI buy both, to be honest. For "deep cash", as folks tend to call it, I have some 5-yr CDs fetching > 3%. Yes, I'm chasing yield, but I can withdraw the money immediately (for a small penalty). It's a bit less accessible than cash in an FDIC-insured account, but for some of my cash, the difference in yield is worth it.
I also have a bunch of 13-week treasuries, cash in a bank account, and cash on hand. There's some risk with FDIC, but there's also risk with SIPC (possibly more?) if you're holding STTs with Fidelity, and there's risk with TreasuryDirect (as discussed on this forum).
Pick your poison!