Personal Investments • T bills interests at Treasury Direct

It looks like the interest using T bills at Treasury direct do not compound since they are credited back to an account. It makes me lean more toward CDs.

This is simply how Treasuries work, regardless of where they're held. It's also how brokered CDs work. Only CDs directly held with banks compounds. It can be a hassle chasing bank CDs because you wind up with many different accounts.

If you have state income tax, the Treasury interest is exempt.

Nitpick: T Bills don't pay interest. You buy them at a discount and get face value at maturity. Notes and Bonds pay interest twice per year.

Statistics: Posted by exodusNH — Tue Apr 02, 2024 11:40 pm — Replies 8 — Views 954

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