which pays more? 3 year 5.45% CD at 6.2% state tax or 3 year 4.75% non taxable treasury bond?

Answer 1

CD.

Answer 2

they doesn't try this. when you're elevating taxes to pay for this methodology beginning 3 hundred and sixty 5 days a million then this methodology might want to start up mutually yet when that grow to be executed the actual fee might want to be popular and that is a secret because i'm too dumb to verify out if it prices a million trillion funds over the 6 years of this methodology will pay out that the fee is about 167 billion a three hundred and sixty 5 days and by no skill the single hundred billion they're saying depending on this methodology being in effect for ten years. the once a year fee isn't the dimensions of the bill brings in gross revenues inspite of the undeniable fact that the costs is what it fee divided by technique of the years it actually will pay out. They did this to instruct the way it isn't extreme priced and to conceal the actual fee. And definite they likely will do to that "believe fund" as they might want to Social protection-spend the money on something and replace it with IOU's. human beings reall both imagine each individual else is stupid or they have confident themselves that day is evening-the get at the same time above of no longer denying those with pre-latest condiotion and having to provide them well being coverage isn't area of the money being distributed for this bill-that fee is a shopper fee; the authorities does no longer start up making use of the money they are going to be amassing till likely 3 hundred and sixty 5 days 4 the criteria on what an coverage organization does or a organization isn't figured in the governmentak fee. once the coverage organizations ought to settle for rather extreme threat and extreme fee patiets what do you imagine will happen to coverage prices? And ignore the "grasping coverage organization" rant because the income margun for well being coverage is between 2% and three% the extreme figures given are entire coverage and both motor vehicle and residential have a lot more effective income margins.

Answer 3

Don't forget to consider the effect of federal taxes you have to pay on both forms of interest. So, assuming you're in the 28% federal tax bracket, the total tax rate on the CD is 34.2% (28+6.2). The total tax rate on the Treasury note is 28%, since you don't have to pay state or local taxes on that interest.

Your after-tax return on the CD would be 3.59%. The after-tax return on the t-note would be 3.42%.

Answer 4

neither 5.2% 6 mo t-bill.

But to answer your question, assume $10,000 invested in each. $545 on the cd annually. $475 on the t-bond. after tax the $545 will be worth $33.79 less giving $511.21. So the cd pays more.

Answer 5

Treasury bonds are not nontaxable. You don't have to pay state or local taxes on the interest -- but you do have to pay federal taxes on the interest.

Answer 6

A better question is the direction you believe interest rates will be going. If you think they will go up, keep your money short-term liquid. Opposite belief, tie up your bucks. (A broader answer to your question would depend on your tax bracket.)