Quote:
Originally Posted by manaboutown
Just checked. My Schwab account trade platform shows one year T-bills at 4.58%.
After getting a huge capital gain in May I put 30% of it in stocks a little at a time. When 9 month T-bills topped 3% I put the rest there. That is the best I could do at the time. Stocks scare me right now.
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So, T-bills pay a higher interest rate than CDs. I didn't know that, but I wouldn't buy either product. The Vanguard short term bond index fund is paying 4.38 percent, and you don't need to tie up your money for 12 months.
Their high yield fund (junk bonds) is paying 7.46 percent, which is a good way to increase your overall yield with a small percentage of your bond portfolio.