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That has massive fee friction, does not eliminate counter party risk entirely, and earns different (lower?) rates than the Fed offers.
by rocqua 4y ago
That has massive fee friction, does not eliminate counter party risk entirely, and earns different (lower?) rates than the Fed offers.
- chrchang523 4y agoI don’t know how long this will last, but I started doing this recently with Vanguard’s VUSXX (short-term Treasury) fund when I realized it had significantly higher after-tax yield than high-interest savings accounts without the hassle of manually rolling over T-bills, and it looks like many other people have been moving in this direction.
- guepe 4y agoIf you buy t-bills yourself fees are low, and brokers aren't banks - so risk of money being stuck there is low. It's a bit of work but very manageable. 10/10 recommend, you earn more than a savings account.
- ac29 4y agoFees on buying treasuries are zero if you buy them directly from the treasury or any of the large brokers (Vanguard, Fidelity, etc).