is below 2%. While most well-known bricks-and-mortar banks are paying measly yields, smaller banks and online ones are dangling more attractive rates. For example, USAlliance Financial, in Rye, N.Y., is offering a “special rate” of 5.75% for its six-month CD. BluPeak Credit Union, in San Diego, offers the same rate for a nine-month CD.
Buyer beware: With offers like these, the bank or credit union rolls your money into a regular-rate CD at maturity unless you actively withdraw the funds. “That seems to be a common tactic that banks are using,” says Ken Tumin, founder of Deposit Accounts, a site that tracks savings accounts and CDs. “Savers can make use of it but they have to be prepared to move the money when the CDs mature.”It’s up to you to decide if shopping around is worth the trouble, including reading the fine print.
T-bills can be bought and sold through a brokerage account—Treasurys now trade commission-free on many online brokerages. They can also be bought through the government website. If you want to sell Treasurys before they mature, you can easily do so via your brokerage account . If you bought through TreasuryDirect, you’ll have to transfer your T-bills to a brokerage account first.Include your full name and location, and we may publish your response.
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