CD’s and Treasuries Interest discussion

Brookswood

Brookswood

Senior Member
We live in interesting times in regards to interest rates and what ordinary folks can earn on CDs and Treasury obligations. Let’s use this thread to truly an help each other earn as much as we can on our savings while staying with very safe things like FDIC insured accounts, government money market funds, and US Treasury obligations.

Today, the three year treasury bill sold with a yield of 3.9% compared to 4.3% last month. That’s a loss of 40 basis points. I’ll bet that the demand for these ultra-safe treasuries was very high as the stock market once again proves that it can go down as well as up. Hang on, it may be a roller coaster ride for some time.

For the newbies a “basis point“ is one one-hundredth of a percent. So 100 basis points = 1%
 

My money market slipped from 4.31% to 3.92. this month--makes a difference.
To me, CDS are not much better. I invest only in very reputable companies.
 
I haven't been out of equities in over 30 years, but yesterday I called my financial advisor and told him to take me out after the beating the stock market has seen. He put me in CDs that pay 4.5 and some bonds and kept a small margin in equities. I felt like I could breathe again today as I watched the market tumble over 400 points.

We all know what is causing this and I think there is more hurt to come. I just decided to cut my losses since the past 4 years have been great for my portfolio. At this point I'm just happy to retain my hard-earned money and add a small percentage on top of it. I only take 4-5% per year out so I'm good with that.
 
I’d like to keep this discussion about CDs, money market mutual funds, and treasury securities. All are very safe.

Stocks, corporate bonds and other things have more risk and deserve a thread of their own.

I just purchased a CD at 4.3% using proceeds from a mature CD that was paying 5.1%. And the 4.3% is only for three months. Not a bad rate, and compared to the 5 year 3% CDs of a decade ago we are still doing better.

Some banks will have above normal interest offers here and there, and I am hoping we can share them.
 
Aunt Bea said:
I use Vanguard Federal Money Market Fund (VMFXX) for cash.

The current 7 day yield is around 4.25%.

It is not FDIC insured but is covered by SIPC.

SIPC - What SIPC Protects

What works for one may not work for another and what works today may not work tomorrow, do what works best for you and your situation.
Click to expand...
keep in mind there is a 250k limit on cash with sipc .

sipc only covers brokerage accounts not what dime companies call mutual fund accounts.

but one can buy t-bill etfs as well as ultra short term bonds fund etfs to get around the 250k cap
 

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