Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

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mega317
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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by mega317 » Mon Jun 04, 2018 11:23 am

aj76er wrote:
Mon Jun 04, 2018 10:05 am
So I'm just wondering if bonds show up here just before the day of auction?
Should show up the day of the announcement, which in your case is the 7th.

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by shipwreck » Mon Jun 04, 2018 12:45 pm

aj76er wrote:
Mon Jun 04, 2018 10:05 am
I was wanting to buy a 13-week T-bill at the next auction on 6/11. If I wanted to buy at Fidelity, would I do this at:

Investment Products->Fixed Income->Individual Bonds->Find Bonds->New Issues->Treasury

Currently it shows "0" are available, So I'm just wondering if bonds show up here just before the day of auction? It would be helpful to have some screenshots from Fidelity like those from Vanguard posted above.
It will show up around noon on 6/7/2018 . See the following link for Announcement Dates.
You should now see 4 week for auction tomorrow.

https://www.treasurydirect.gov/instit/i ... m?upcoming

MnD
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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by MnD » Mon Jun 04, 2018 2:41 pm

When does the cash need to be in your brokerage account relative to these T-bill auction purchases?
My cash is in a Schwab Prime (purchased) Money Market fund in the same account where I'll be buying the T-bills.
This MM fund is not the sweep account.
In other words for a given auction date, when should non-sweep MM shares be sold?
It is a margin account but I do not want to incur any margin loan expenses, nor do i want to sell the non-sweep MM shares earlier than needed.
Last edited by MnD on Mon Jun 04, 2018 2:56 pm, edited 1 time in total.

livesoft
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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by livesoft » Mon Jun 04, 2018 2:55 pm

^That's an excellent question to ask Schwab. Whenever I see such questions I have to wonder whether these brokerage firms are so bad that no one wants to call them up and get some service from customer service reps. So help us out here and let us know what Schwab tells you. Thanks!
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MnD
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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by MnD » Mon Jun 04, 2018 3:01 pm

livesoft wrote:
Mon Jun 04, 2018 2:55 pm
^That's an excellent question to ask Schwab. Whenever I see such questions I have to wonder whether these brokerage firms are so bad that no one wants to call them up and get some service from customer service reps. So help us out here and let us know what Schwab tells you. Thanks!
I already did that about auto-roll at Schwab, the official answer being no.
I was hoping to use my 1 Bogleheads-bucks credit with this question. 8-)
MnD wrote:
Thu May 31, 2018 6:20 pm
indexfundfan wrote:
Thu Mar 22, 2018 8:14 am
Some people mentioned and liked the ability of Fidelity to automatically roll the treasuries over to the next issue when they mature. I'm still trying to find out if Vanguard or Schwab supports this as well (I currently don't have an active account at Fidelity).
Schwab does not offer auto-roll on-line or through their fixed income specialists. I just checked today.
It is in the suggestion box for enhanced client services so we can hope for that in the future.

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by livesoft » Mon Jun 04, 2018 3:16 pm

MnD wrote:
Mon Jun 04, 2018 3:01 pm
livesoft wrote:
Mon Jun 04, 2018 2:55 pm
^That's an excellent question to ask Schwab. Whenever I see such questions I have to wonder whether these brokerage firms are so bad that no one wants to call them up and get some service from customer service reps. So help us out here and let us know what Schwab tells you. Thanks!
I already did that about auto-roll at Schwab, the official answer being no.
Note that triceratop called Schwab and found out a semi-auto way to roll as reported earlier in the thread you are reading now:
viewtopic.php?p=3951969#p3951969

So triceratop deposited some BH$. :)
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RetiredArtist
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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by RetiredArtist » Mon Jul 09, 2018 6:08 pm

As a trustee, I had to distribute several Treasury bonds (initially held via Treasury Direct). Treasury Direct was a pain- an attorney was needed to figure which forms to fill out, and everyone involved had to provide Medallion Guarantee signatures- which are hard to get these days. Not to mention the weird online security decoder. If you buy Treasury notes/bills via Vanguard, can you (and your heirs) avoid dealing with Treasury Direct?
Thanks!

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by jacoavlu » Mon Jul 09, 2018 9:18 pm

RetiredArtist wrote:
Mon Jul 09, 2018 6:08 pm
If you buy Treasury notes/bills via Vanguard, can you (and your heirs) avoid dealing with Treasury Direct?
Thanks!
Yes.
You’re welcome.

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by MathIsMyWayr » Wed Oct 03, 2018 12:54 am

I have a CD maturing on 10/15/2018 at Fidelity. Is it possible to buy 1-year T-bills (auction on 10/9/2018, settlement on 10/11/2018) with the proceed of the CD?

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by Daryl » Wed Oct 03, 2018 4:49 am

MathIsMyWayr wrote:
Wed Oct 03, 2018 12:54 am
I have a CD maturing on 10/15/2018 at Fidelity. Is it possible to buy 1-year T-bills (auction on 10/9/2018, settlement on 10/11/2018) with the proceed of the CD?
I've enabled margin trading on my Fidelity account so I don't think this would be an issue. Trying this in a cash account could be problematic as it looks like you are trying to buy a security before selling the old one.

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by MathIsMyWayr » Wed Oct 03, 2018 7:43 am

I have an "Investment Accounts - Individual" account. Do I have to have margin trading enabled before buying a T-bill (10/11/2018 settlement) before the CD matures on 10/15/2018? Can I do it online or have to call Fidelity?

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by drzzzzz » Wed Oct 03, 2018 7:56 am

MathIsMyWayr wrote:
Wed Oct 03, 2018 7:43 am
I have an "Investment Accounts - Individual" account. Do I have to have margin trading enabled before buying a T-bill (10/11/2018 settlement) before the CD matures on 10/15/2018? Can I do it online or have to call Fidelity?
I would just call fidelity and ask them if you can do what you want

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by MikeG62 » Wed Oct 03, 2018 8:37 am

MathIsMyWayr wrote:
Wed Oct 03, 2018 7:43 am
I have an "Investment Accounts - Individual" account. Do I have to have margin trading enabled before buying a T-bill (10/11/2018 settlement) before the CD matures on 10/15/2018? Can I do it online or have to call Fidelity?
Why can’t you wait for the CD to mature and the cash is in your account to purchase the Treasuries?

If you end up borrowing to make the purchase the interest on the margin debt will be multiples of what you’d be able to earn on the Treasurues during that period.
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CDs are Not Marginable Securities

Post by dodonnell » Wed Oct 03, 2018 9:15 am

https://www.fidelity.com/trading/faqs-margin
The following are not eligible for margin borrowing:

CDs, money market funds, annuities, options, precious metals, and offshore mutual funds
UGMA/UTMA or retirement accounts

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by MathIsMyWayr » Wed Oct 03, 2018 4:41 pm

Yes, making a margin trading does not make an economic sense in this case. The Fidelity margin interest rate is more than 10 times the interest rate difference between 1-yr T-bill and SPAXX. I will keep the CD proceed in SPAXX and will buy the next T-bills four weeks later. Any way, CD cannot be used for margin as dodonnell pointed out.

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by dodonnell » Wed Oct 03, 2018 5:09 pm

MathIsMyWayr wrote:
Wed Oct 03, 2018 4:41 pm
Yes, making a margin trading does not make an economic sense in this case. The Fidelity margin interest rate is more than 10 times the interest rate difference between 1-yr T-bill and SPAXX. I will keep the CD proceed in SPAXX and will buy the next T-bills four weeks later. Any way, CD cannot be used for margin as dodonnell pointed out.
Another option maybe Auction on Oct 15th for 26-week T-bill, which settles on Oct 18th. Fidelity may allow you to select "auto-roll" for 1 cycle to get you 12 months? The market is expecting 2 more rate hikes by March.

Source image from: https://www.treasury.gov/resource-cente ... ctions.pdf

Image

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by triceratop » Tue Oct 09, 2018 11:41 am

triceratop wrote:
Thu May 31, 2018 11:56 am
dodonnell wrote:
Thu May 31, 2018 7:35 am
triceratop wrote:
Thu May 31, 2018 12:42 am
Question: I have 26-week T-bills maturing 10/11/2018. There happens to be an auction for 26-week T-bills on 10/11/2018. As previously discussed Schwab does not allow rollover of Treasuries. However, since they know it is maturing at face value, will they allow me to place an auction order, since settlement occurs later?
A brokerage account with Margin (including an IRA with Margin), should allow you to reinvest the unsettled cash proceeds from the matured, but not yet settled, Tbill without incurring a margin loan.
A Schwab rep confirmed that while there is not support for the automatic rollover, one can participate in treasury auctions to execute a manual rollover. That is, one matches the settlement date of the auction with the due date of the treasury and Schwab will roll it over.

This should be useful information for Bogleheads who want to roll T-bills at Schwab as they can at other brokerages.
This trade executed, to settle 10/11 coinciding with my previous bill maturing. All is smooth sailing so far.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by mervinj7 » Tue Oct 09, 2018 3:36 pm

triceratop wrote:
Tue Oct 09, 2018 11:41 am
triceratop wrote:
Thu May 31, 2018 11:56 am
dodonnell wrote:
Thu May 31, 2018 7:35 am
triceratop wrote:
Thu May 31, 2018 12:42 am
Question: I have 26-week T-bills maturing 10/11/2018. There happens to be an auction for 26-week T-bills on 10/11/2018. As previously discussed Schwab does not allow rollover of Treasuries. However, since they know it is maturing at face value, will they allow me to place an auction order, since settlement occurs later?
A brokerage account with Margin (including an IRA with Margin), should allow you to reinvest the unsettled cash proceeds from the matured, but not yet settled, Tbill without incurring a margin loan.
A Schwab rep confirmed that while there is not support for the automatic rollover, one can participate in treasury auctions to execute a manual rollover. That is, one matches the settlement date of the auction with the due date of the treasury and Schwab will roll it over.

This should be useful information for Bogleheads who want to roll T-bills at Schwab as they can at other brokerages.
This trade executed, to settle 10/11 coinciding with my previous bill maturing. All is smooth sailing so far.
Will this T-bill continue to automatically auto-roll or do you need to call Schwab each time to arrange it?

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by triceratop » Tue Oct 09, 2018 4:09 pm

mervinj7 wrote:
Tue Oct 09, 2018 3:36 pm
triceratop wrote:
Tue Oct 09, 2018 11:41 am
This trade executed, to settle 10/11 coinciding with my previous bill maturing. All is smooth sailing so far.
Will this T-bill continue to automatically auto-roll or do you need to call Schwab each time to arrange it?
I would quibble with your use of the word "continue", since even this time it was not automatic. To clarify, while Schwab confirmed this was how I was to proceed months ago, they did not actually configure anything for this trade back then. Instead, they told me that when the auction announcement was put up, I could submit an order despite the fact I didn't have settled funds to complete the trade. The trick is that I will have settled funds on 10/11 when settlement for the new bill occurs. I will have to participate manually in every auction to roll my bills, but at least I won't ever be out of the market (except for the trivial detail that I'll own a 0-duration instrument on the last day which is always a problem with holding to maturity).
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by mervinj7 » Tue Oct 09, 2018 4:16 pm

triceratop wrote:
Tue Oct 09, 2018 4:09 pm
mervinj7 wrote:
Tue Oct 09, 2018 3:36 pm
triceratop wrote:
Tue Oct 09, 2018 11:41 am
This trade executed, to settle 10/11 coinciding with my previous bill maturing. All is smooth sailing so far.
Will this T-bill continue to automatically auto-roll or do you need to call Schwab each time to arrange it?
I would quibble with your use of the word "continue", since even this time it was not automatic. To clarify, while Schwab confirmed this was how I was to proceed months ago, they did not actually configure anything for this trade back then. Instead, they told me that when the auction announcement was put up, I could submit an order despite the fact I didn't have settled funds to complete the trade. The trick is that I will have settled funds on 10/11 when settlement for the new bill occurs. I will have to participate manually in every auction to roll my bills, but at least I won't ever be out of the market (except for the trivial detail that I'll own a 0-duration instrument on the last day which is always a problem with holding to maturity).
Thanks for clarifying. In that case, I will continue to use Fidelity's auto-roll feature since it automatically rolls over into the same maturity with no manual participation on my part. It's great for building a staggered Treasury ladder through the online interface. One thing I don't like about Fidelity's implementation is that you have to call to cancel auto-roll but I would prefer an online option.

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by triceratop » Tue Oct 09, 2018 5:49 pm

That's reasonable. I don't want to open a Fidelity account just for T-bills, and I already have a schwab checking account that I do my primary banking with, and which is closely integrated with the brokerage account. It takes a simple calendar entry to remind me and a few extra clicks to actually manually roll my bills.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by wannabebogler » Tue Oct 09, 2018 8:48 pm

It appears treasury bills are available for purchase at TD Ameritrade. Is there a reason NOT to purchase there vs. Schwab/Fidelity?

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by triceratop » Tue Oct 09, 2018 8:54 pm

wannabebogler wrote:
Tue Oct 09, 2018 8:48 pm
It appears treasury bills are available for purchase at TD Ameritrade. Is there a reason NOT to purchase there vs. Schwab/Fidelity?
Are they stil charging $25 for buying treasuries at auction? That would be a good reason. Do they also still have a minimum transaction of 5 bonds for trades?
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by wannabebogler » Tue Oct 09, 2018 8:58 pm

triceratop wrote:
Tue Oct 09, 2018 8:54 pm
wannabebogler wrote:
Tue Oct 09, 2018 8:48 pm
It appears treasury bills are available for purchase at TD Ameritrade. Is there a reason NOT to purchase there vs. Schwab/Fidelity?
Are they stil charging $25 for buying treasuries at auction? That would be a good reason. Do they also still have a minimum transaction of 5 bonds for trades?
I see the 5 bond minimum. I'm reading that to be $5k right? That wouldn't be an issue for me personally. I can't find the $25 but that would make sense.

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by triceratop » Tue Oct 09, 2018 9:00 pm

wannabebogler wrote:
Tue Oct 09, 2018 8:58 pm
triceratop wrote:
Tue Oct 09, 2018 8:54 pm
wannabebogler wrote:
Tue Oct 09, 2018 8:48 pm
It appears treasury bills are available for purchase at TD Ameritrade. Is there a reason NOT to purchase there vs. Schwab/Fidelity?
Are they stil charging $25 for buying treasuries at auction? That would be a good reason. Do they also still have a minimum transaction of 5 bonds for trades?
I see the 5 bond minimum. I'm reading that to be $5k right? That wouldn't be an issue for me personally. I can't find the $25 but that would make sense.
Yes $5k face value. There is mention of a fee on this page: https://www.tdameritrade.com/pricing.page
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by MathIsMyWayr » Tue Oct 09, 2018 9:52 pm

Today I bought a small lot of 52-week treasury bills at auction through Fidelity. This is my first T-bills and the whole process was a breeze. The interest rate is about 2.68% (equivalent to about 2.95% for CD before Calif tax). I used petty cash at Fidelity. 3-month CD will mature on 10/15 and will buy 26-week treasury bills as dodonnell suggested.

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by triceratop » Sat Oct 13, 2018 4:15 pm

triceratop wrote:
Tue Oct 09, 2018 11:41 am
triceratop wrote:
Thu May 31, 2018 11:56 am
dodonnell wrote:
Thu May 31, 2018 7:35 am
triceratop wrote:
Thu May 31, 2018 12:42 am
Question: I have 26-week T-bills maturing 10/11/2018. There happens to be an auction for 26-week T-bills on 10/11/2018. As previously discussed Schwab does not allow rollover of Treasuries. However, since they know it is maturing at face value, will they allow me to place an auction order, since settlement occurs later?
A brokerage account with Margin (including an IRA with Margin), should allow you to reinvest the unsettled cash proceeds from the matured, but not yet settled, Tbill without incurring a margin loan.
A Schwab rep confirmed that while there is not support for the automatic rollover, one can participate in treasury auctions to execute a manual rollover. That is, one matches the settlement date of the auction with the due date of the treasury and Schwab will roll it over.

This should be useful information for Bogleheads who want to roll T-bills at Schwab as they can at other brokerages.
This trade executed, to settle 10/11 coinciding with my previous bill maturing. All is smooth sailing so far.
Settlement worked without a hitch. So manual rolling works just fine at Schwab, as expected.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by jacoavlu » Sat Oct 13, 2018 4:31 pm

Interesting about Schwab. Because the cash from maturing T bills never seemed to “hit” my brokerage account until late late in the evening the day of maturity.

But you’re saying I should be able to “match” a purchase of a new issue T bill with a maturing T bill without having to call, or use margin or anything?

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by triceratop » Sat Oct 13, 2018 5:13 pm

jacoavlu wrote:
Sat Oct 13, 2018 4:31 pm
Interesting about Schwab. Because the cash from maturing T bills never seemed to “hit” my brokerage account until late late in the evening the day of maturity.

But you’re saying I should be able to “match” a purchase of a new issue T bill with a maturing T bill without having to call, or use margin or anything?
Right. Intuitively you can think that despite the cash from maturing T bills not "hitting" your brokerage account until late late in the evening, still neither does the settlement for the T bill you're purchasing "hit" your account until the very same time. Which makes sense -- otherwise "settlement" is not actually occurring at all.

I think I'm saying more than that you "should" be able to -- I am saying I did precisely that. :)
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by Mrshickadance9 » Mon Nov 12, 2018 10:52 am

I have what might be a dumb question. Let's say I buy T bills through Treasury Direct, and ask them to roll over the principal + interest I've earned into a new T bill at expiry.

If I have to buy in $100 increments, are they going to be able to roll over, for example, the full $102 I've now got at expiration, or will they only invest the $100 since you have to buy in $100 increments?

I ask, because right now I've got my house savings in a Barclay's high interest savings account, but I'd love to get a bit higher APY + not lose money to taxes if possible, but if I can't streamline the process via automated rollovers, it may not be worth it.

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by drzzzzz » Mon Nov 12, 2018 6:16 pm

At least at Vanguard and Fidelity and I am guessing treasury direct, you purchase t bills at a discount and they mature at the full value. So a $1000 bill might cost $945 and you get back $1000. The difference is the interest that you get paid so it's an odd number to purchase and a round number when it matures.

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by dalmatiandan » Mon Nov 12, 2018 6:34 pm

Mrshickadance9 wrote:
Mon Nov 12, 2018 10:52 am
I have what might be a dumb question. Let's say I buy T bills through Treasury Direct, and ask them to roll over the principal + interest I've earned into a new T bill at expiry.

If I have to buy in $100 increments, are they going to be able to roll over, for example, the full $102 I've now got at expiration, or will they only invest the $100 since you have to buy in $100 increments?

I ask, because right now I've got my house savings in a Barclay's high interest savings account, but I'd love to get a bit higher APY + not lose money to taxes if possible, but if I can't streamline the process via automated rollovers, it may not be worth it.
Drzzzzzz has it right, T-Bills (maturities of 4 weeks to 52 weeks) are issued at discount and then you receive par value at maturity. I have a 4-week T-Bill set up at Treasury Direct to auto re-purchase every 4-weeks, and the only money I see are some pennies deposited into my linked bank account, which consists of the difference in purchase price from one T-Bill to the next one.

If you want to track the “interest” earned and deposited to your bank account, you will know when you eventually have the next $100 (or $95 etc) increment available to increase the amount of the auto re-purchase. Until then, you’ll be stuck with something less than $100 or whatever sitting in your linked account.

All the best,
Dan

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by blackcat allie » Fri Dec 21, 2018 2:27 pm

If there's government shutdown, will Treasury Direct phone/email support be effected? (especially if shutdown of a longer duration)
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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by rasta » Fri Dec 21, 2018 3:43 pm

blackcat allie wrote:
Fri Dec 21, 2018 2:27 pm
If there's government shutdown, will Treasury Direct phone/email support be effected? (especially if shutdown of a longer duration)


https://www.treasurydirect.gov/statusgovshutdown.htm

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by blackcat allie » Fri Dec 21, 2018 4:14 pm

rasta wrote:
Fri Dec 21, 2018 3:43 pm
blackcat allie wrote:
Fri Dec 21, 2018 2:27 pm
If there's government shutdown, will Treasury Direct phone/email support be effected? (especially if shutdown of a longer duration)

https://www.treasurydirect.gov/statusgovshutdown.htm
Thanks, though link does say "Last Updated April 8, 2011" at bottom. Hopefully still holds...
“Nothing in life is as important as you think it is while you are thinking about it.” - Daniel Kahneman

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by dodonnell » Mon Jul 08, 2019 4:12 pm

I learned something a little disturbing today regarding assets held at Treasury Direct.

Treasury Direct automatically searches the TOP database for any liens/claims/judgments against the taxpayer TIN/EIN and automatically pay off the claim using account holder's assets.

https://www.fiscal.treasury.gov/top/how-top-works.html

I had recommended Treasury Direct as a solution to a small California Corporation's CEO. He thanked me for suggested a way to deploy his large amount of cash earning 0% in BoA into a 4-week TBill ladder to fund operations, payroll, and reserves.

I was unaware that he was in the middle of some kind of dispute with New Jersey as NJ was claiming his Corporation was effectively an NJ Corporation and owed NJ Corporate fees/taxes.

Treasury Direct paid New Jersey the amount they claimed and sent a letter notifying my CEO buddy.

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Re: Buying Treasury Bills: Treasury Direct or Vanguard / Fidelity

Post by ThisJustIn » Wed Jul 10, 2019 7:33 pm

dodonnell wrote:
Mon Jul 08, 2019 4:12 pm
I learned something a little disturbing today regarding assets held at Treasury Direct.

Treasury Direct automatically searches the TOP database for any liens/claims/judgments against the taxpayer TIN/EIN and automatically pay off the claim using account holder's assets.

https://www.fiscal.treasury.gov/top/how-top-works.html

I had recommended Treasury Direct as a solution to a small California Corporation's CEO. He thanked me for suggested a way to deploy his large amount of cash earning 0% in BoA into a 4-week TBill ladder to fund operations, payroll, and reserves.

I was unaware that he was in the middle of some kind of dispute with New Jersey as NJ was claiming his Corporation was effectively an NJ Corporation and owed NJ Corporate fees/taxes.

Treasury Direct paid New Jersey the amount they claimed and sent a letter notifying my CEO buddy.
This is interesting and good to know. Thank you.

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