3 ms·
If you want to recover the interest spread on Treasury MM funds for yourself, Fidelity makes it trivial to buy 4-week Treasury bills[1] which auto roll (repurch
by js2 7y ago
If you want to recover the interest spread on Treasury MM funds for yourself, Fidelity makes it trivial to buy 4-week Treasury bills[1] which auto roll (repurchase at maturity). Interest is state income tax free and Treasuries are the safest place you can park cash.
1. Any duration offered of course. You can do this at Schwab and Vanguard too with varying degrees of ease and convenience. https://thefinancebuff.com/treasury-bills-cd-money-market.html https://thefinancebuff.com/treasury-bills-cd-money-market.ht...
- ethbro 7y agoThis blew my mind when I discovered it. It's essentially a "literally get the best (short term, stable) for your savings, always." And it's cash-equivalent, so can be purchased and held in any cash management Fidelity account. The only caveat I've found is that the online tools for interacting with orders can be a bit hit or miss. But just calling into their fixed income desk will get someone to do what you need ASAP. And that you have to schedule buys on Treasury's schedule. (Thursdays, so enter orders on Wednesdays, I think?) But past that, just setting up several non-overlapping auto-buys is a great way to get good interest on a < 2 week liquid account. And say to hell with all those "reward checking" criteria.