2007-01-31 08:56:13 · 4 answers · asked by wateroxp 2 in Business & Finance ➔ Personal Finance
Safest investment you can buy. You'll never lose a dime with T-bills. Plus, they have low minimums - only $1,000, and you buy them at a discount (less than face value) and then they grow to the face amount. For instance, a 3 month bill would cost you about $988 and return $1,000 in three months for an annualized yield of 5.10%. But what's the flip side of that - other than bank deposits, you'll earn less on T-bills than anything else you could buy.
2007-01-31 09:06:43 · answer #1 · answered by cjones1303 4 · 0⤊ 0⤋
They are mediocre. Interest rates are not all that great. Not very liquid, meaning, if you have to sell quickly, you may loose some of your principal.
Money market funds are paying at least 5% interest. You can add or subtract money anytime you wish. The assets are very liquid.
On PBS, the Nightly Business report gives the yield on US Treasuries. The ten year note yield was 4.88% yesterday.
2007-01-31 09:02:39 · answer #2 · answered by regerugged 7 · 0⤊ 0⤋
The only disadvantage is the lower then average rate of return, but the good news is that there is no risk involved as the American govt has never defaulted on a debt ever.
2007-01-31 09:01:54 · answer #3 · answered by Scott K 2 · 0⤊ 0⤋
1) No.
2) Your money is used to bomb Irak and other countries.
2007-01-31 12:20:05 · answer #4 · answered by Anonymous · 0⤊ 2⤋