Savings/investments/bonds Master Thread.

[gozalim]

Hmm that would be interesting. I didn’t think about that. Suppose I would sell it 1 day before maturity - it would be subject to State taxes, but if I wait till it matures then I’ll be off the hook?! Strange. But no one ever said the tax code was simple. Would be helpful if someone knows the answer to that.

note the person you sell it to would be off the hook for taxes upon maturity

[CountValentine]

I can get 5.10 from Schwab on the secondary market

That would be after the fact, correct?

[sam2015]

note the person you sell it to would be off the hook for taxes upon maturity

Upon maturity he will receive interest for holding for one day! When I sell one day before, I am the one making most of the interest.

[sam2015]

That would be after the fact, correct?

Could be. I don’t know. I just logged in now to check the rate, and that’s what it was.

[Spoon]

I can get 5.10 from Schwab on the secondary market

Is it possible to buy them on the app? Can’t seem to find them

[CountValentine]

note the person you sell it to would be off the hook for taxes upon maturity

We are not worried about the other guy. 
If I sell a year T-bill one day before maturity is the whole amount I made capital gains? This would make it all taxable at the state/local level, no?

[sam2015]

Is it possible to buy them on the app? Can’t seem to find them

No. Cannot buy bonds from the Schwab app as of yet

[sam2015]

26-week auction today was 5.11%

What is the maturity date?

[CountValentine]

What is the maturity date?

8/24
I have a Schwab account also. I always check both.

[sam2015]

8/24
I have a Schwab account also. I always check both.

Are the rates on Schwab better than Fidelity?

[CountValentine]

Are the rates on Schwab better than Fidelity?

Same as far as I can tell. Schwab makes the days actions available sooner to trade on the secondary market.
For those want to make sure of the rate they are getting they can buy on Schwab shortly after the action. You will get a little less only because of the bid/ask spreads.

I normally set up my buys on Friday for Mondays auctions (holiday so Tuesday today).

Can you show how to buy/sell on the secondary market? Today's 6/mo would be a good example. You do a way better job than me.

[aygart]

note the person you sell it to would be off the hook for taxes upon maturity

Upon maturity he will receive interest for holding for one day! When I sell one day before, I am the one making most of the interest.

Is the entire interest value untaxable? Is it a capital loss with tax exempt interest?

[sam2015]

Can you show how to buy/sell on the secondary market? Today's 6/mo would be a good example.

Sure. Will show a step by step how to buy and also to sell.

[sam2015]

Here is a step by step how to buy Treasuries from your Schwab account:

Select Trade, then select Bonds



In this case we are looking to buy the new 6 month - select it



Next, find the new 6 month and click on view



Click on Buy next to the highest rate - provided you wish to purchase the minimum (in this case it's only 1)



Type in the amount you wish to purchase and then click Review Order



Make sure everything looks right and then place order

[sam2015]

Keep in mind that you don't have to purchase these only by the month. Do a search and you will pull up all different maturity dates.

[Joe4007]

Bad idea to deposit 7 figures. It is only FDIC insured up until 250k or 500k for joint accounts. I would not put in more than the FDIC insured limits with a Bank that does not yet have a long proven track record. Especially when they are handing out higher interest rates then all other banks..

It is very hard for me to imagine a scenario in which the US government allows a bank to fail wiping out depositors.

[CountValentine]

It is very hard for me to imagine a scenario in which the US government allows a bank to fail wiping out depositors.

I can see them and have seen them not cover deposits over the limits.

[Spoon]

With the way these interest rates keep rising, would the 3 month T bill be the better move?

[CountValentine]

With the way these interest rates keep rising, would the 3 month T bill be the better move?

Could be. I was doing 3 and 6 months. Now I am only doing 6 months.

[aygart]

Is the entire interest value untaxable? Is it a capital loss with tax exempt interest?

Bump. Anyone know?