According to this US Treasury page, interest rates on 6-month and 12-month Treasury Bills exceed 5%. This is below recent inflation. It beats having cash sit in a bank account earning 0.1%. If you have some extra cash you don’t need for six months, this might be a good play.
You can ladder into Treasury Bills by buying Bills directly on TreasuryDirect.gov.
Our preference at the moment:
- First – TIPS (Treasury Inflation Protected Securities)
- Second – I-bonds
- Third – Treasury Bills
A future post will explain the differences between TIPS and I-bonds, and why in the current environment TIPS make more sense. All three can be bought on the same Treasury Direct website.
Sincerely yours,
smilingdad
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