[Hiro]

For anyone that has never bought t-bills before, they are actioned off, so you don't know exactly what the interest rate will be until the auction takes place and you have already placed your order. Big investors bid a price they are willing to pay for the t-bills and that sets the price for everyone else.

I believe there is a treasury website that posts the most current rates, but I think it is the rate from the last auction. What you will actually get is usually fairly close to the previous auction rate.

It is also much easier to place the order through a broker than through the Treasury website.

If anyone needs help, I can point you to a youtube video that explains everything and walks you through placing an order.

You can also buy them in the secondary market with known yields. Generally, short term T-bills have a pretty predictable auction rate.

If you open an account at Home — TreasuryDirect links to your bank account, you can buy savings bonds, t-bills, t-notes, t-bonds, tips, etc. free of commission. Also, they will deposit the interest directly into your bank account and the principal when you security matures.

 

[Hiro]

I used Fidelity.

I paid a discounted price of $986.16, knowing the value of the bond is $1,000 at maturity. The discounted price fluctuates. It closed yesterday at $986.09. The current and fluctuating price has no bearing on me unless I sell before the maturity. My $986.16 bond magically converts to $1,000 in cash at maturity (03/21/2023)

Buying bonds is the closest thing to a "sure thing" that exists

I had never bought a raw bond before. I always bought them in a mutual fund.

Unless the issuer defaults, you can't lose your principal buying individual bonds. You can certainly lose principal if you invest in bond mutual funds, plus there are the fees charged on mutual funds that aren't buying individual bonds directly.

Off to eat too much, everyone have a blessed and Happy Thanksgiving!!

 

[Hiro]

OK. I looked them up. The $10K limit is a deal breaker

View attachment 116301

I bonds — TreasuryDirect

www.treasurydirect.gov

I quit buying them in the early 2000's when they mucked with the potential rates. The ones that I bought in 2000 are yielding over 10% right now.

They are still a reasonable deal for small investments. If you want to invest more than 10k a year, look into TIPS. There is no limit on those.