Earn 5% APY On Emergency Savings With A T-Bill Ladder | Fidelity, TreasuryDirect & Schwab Auto-Roll

[@DiamondNestEgg]

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[@bonniekerr9708]

5.964 4wk T-Bills? Why would they jump 2%?

[@natao261]

Hello Jennifer, I'm very new in the US market and I watched your videos related to TBills and IBonds. I bought via TD some back in late December and now it happens that some 26-week T-Bills have a maturity date of 06/15/2023, I did not select the auto roll as I wanted to see how the process flows. Now not sure what to do if the default happens or how to avoid the risks?... desperate to find the information that will address my exact situation...

[@timparenti]

Loving this! It's basically exactly what I've done: 3 months' expenses in a high-yield savings account, and the rest split across five 17-week T-Bills at TreasuryDirect maturing every 3 to 4 weeks.

[@kimappreciateslife]

I’m doing the same with 17 week T bills. I keep my emergency money in my brokerage account that’s giving more than HYS

[@RayLabs]

I have around 6 months of expense in cash and about another 1.5 years of Essential Expenses (Mortgage/Utilities etc...) in a T-bill ladder with 3 13 week T-Bills as the base, but with a single 8 week T-Bill so that I have 30% in each of my 13 weeks and 10% in my 8 week. That way 30% matures every month and then between the month maturities I have funds available. In short I keep about 2 years worth of expected expenses out of the market so swings like we are seeing recently are less stressful. I'm a couple months away from retirement, I have been working on my investment strategy for a couple of years to make sure when the day comes that everything is in place. Love that Fidelity auto-roll, and thanks for pointing out how to turn off Fidelity Auto-roll in the Top 4 Brokers video. I totally did not catch that when looking at my email notices.

[@itsme869]

I love your personality and teaching style. Very methodical, thorough, and informative. I am praying for an increase in video releases and frequency.

[@kimappreciateslife]

I know! She’s someone I’d go for coffee with.

[@blue-fj9ky]

Agreed she's super straight forward and clear and also friendly!

[@loupasternak]

Good of you to call out Schwab for the absurd week lag in auto roll.

[@Eleuthero5]

I admire your pragmatism and realism. I'm a 71 year old man who is that rare American saver. I had no need for an overpriced home, an upscale car, lavish Parisian vacations, and the like. T-Bills are the best financial vehicle right now because little else is remotely worth the risk. I highly recommend that young professionals buy I Bonds in every year they can. It's about the only financial asset that has a prayer of keeping up with inflation.

[@MarkUnique]

I like how Treasury Direct automatically assigns my standard beneficiaries at purchase, as opposed to any extra steps after purchase.

[@MarkUnique]

@@gg80108 Per transaction, yes, so multiple transactions are needed for multiple beneficiaries.

[@DanGaskell]

Thanks to you, I ladder 17 week T-Bills every month @ $50,000 each time. You opened my eyes on that! All through my IRA. It's through E-Trade which is pretty straightforward but there's no auto-roll. I have to stay on top of the auctions using the Treasury Direct calendar. I also have about 6-8 month's worth of monthly expenses handy. I look forward to your upcoming videos!

[@matt22blaster]

Love the channel. I have a feeling you're going to get very popular with the current economic climate.

[@yonallb]

I have three 13 week t-bills in vanguard. No auto-roll but personal finance is kind of my hobby so I don't have issues being on top of it. They are laddered a month out so each month I roll into a new one.

[@michaelavery3964]

First, I'm glad I watched this video. I just purchased my second rung on my t-bill ladder at Schwab and wondered what would happen during auto-roll. A WEEK?! Since I'm investing in 13 week t-bills, that'll mean A MONTH of idle time on EACH rung of my ladder each year. No thank you! I just opened an account at fidelity and am following your lead on this one

[@bfgillan]

I have a ladder set up with TDA. I called in and asked about setting up auto-roll after the initial purchase and was told they don't support it. And, since the funds aren't available from a maturing TBill to immediately purchase the next in the sequence, you have to call them the day before auction and ask them to do the roll for you. Thanks for the information you present here.

[@drbcrb]

Signed my daughter up on treasury direct. Her first post-college investment.

[@blue-fj9ky]

I no longer keep an emergency fund. I have credit cards for that need and would transfer from investments to pay them off if I ever needed to do that, which I likely won't very often. That allows me to hold more money in longer term higher yielding investments. I can look at a T. Bill ladder as an investment, though. 5% risk-free is very good!

[@MrDesoto1]

I am keeping all my T-Bill HYS in Treasury Direct for now, even though I have accounts with Schwab. And I have moved up the ladder buying 17 and 26 week T-Bills on a weekly basis. Most of Emergency Funds are still in actual HYS accounts. Thanks for the great info.

[@mck33rc]

My TBill ladder is simple. Single "breadwinner". I have 3x13 weeks on autoroll. Each bill contains 2 months worth of expenses. I maintain at least 2 months worth of expenses in my checking and pay for everything on credit and pay everything off at the end of the month. From "Event-Zero", I'm able to decide each month if I want another 2 months worth of cash by choosing not to roll a bill. This gives me extra time for missing dates and screwing up my own calendar ;)

[@ROCBOYZGURLZ]

Thank you I just heard of T Bill laddering and been wanting more knowledge.

[@DiamondNestEgg]

This video on how to build a T-Bill ladder may help: kzbin.info/www/bejne/lZDSoqmaqbGin6c

[@jimclark5037]

we're doing autonrolled 4 and 8 wk t bills in treasury direct, and 13, 17 and 26 in 401ks with Fidelity. If rates reach 5.5% then 2, 3 or 5 year notes in 401k will be tempting.

[@sidkris5197]

7 months of emergency fund is a must (for mortgage)

[@timewithoutconsequence]

Should we wait until March 22nd to purchase more?

[@justinothertech7867]

This content is sooo excellent. Starting some months ago I replicated your laddering strategy with both Fidelity and Schwab. My conclusion was that Fidelity did a slightly better job for the reasons you mentioned. Schwab was no slouch, though, and I'm comfortable using either firm....Fidelity just fit my goals slightly better. Fidelity also had those funky two-week T-bills while I never saw those available on Schwab's site. I will need to watch your "how to turn-off auto-roll with Fidelity" content. I have managed to do this by cancelling the auto-generated buy order but this is kinda klutzy with Fidelity, IMO, so I'll look for other ways to do this.

[@DaniElle-di4ho]

My understanding is you have to call fidelity to cancel an auto roll. I did this one and it was a fairly quick and simple call

[@gonzosale9213]

I’m wondering if auto roll will be available when Schwab takes over all the TD Ameritrade accounts.

[@kidjayhawk]

Thanks. Waiting for you to talk about turning off auto-roll!!!!

[@raydupree3478]

Hi Jennifer, Thanks so much for all the help I got from you concerning I bonds. Valuable information in an easy to understand and patient format.

[@scottjohnson1964]

4,8,13 week. Fully laddered. 100k.

[@mck33rc]

I really enjoy the depths you go into making these topics as frictionless as possible for your viewers. Love the analytical approach. I'm curious on your take on the TBill rate decline? I think I was making an assumption that as the bank rate went up, the TBill rate would too but over the last few auctions things are going back down. Seems like an opportunity to explain how to buy longer bills/bonds and also remind all of us why the rate fluctuates ;)

[@thunderbolt55]

Great videos as always. Could you also make some videos about Municipal and corporate bonds?

[@tomd4240]

Great Video, thank you. I see that currently I can get 5.25% on a 18 month CD, and only 4.21% on a 18 month treasury bill. Any comment on why / how a bank can pay a full percentage point above treasuries? Thanks in advance

[@vivisimonvi]

Instant Like. Thanks a ton for addressing the time gap issue! I haven't been using the auto-roll feature on TD as I'm still in the ladder building phase. I have a "spare" separate Bill for some extra cash that isn't part of this ladder and I had some issue figuring out how to roll into the next 4-Week Bill without having to experience delay. I went ahead and put that into a 13-Week BIll that auctions tomorrow and issues on the 16th rather than waiting for next 4-Week Bill that doesn't issue until the 21st. My 4-Week Bill should mature before the issue date for the 13-Week one.

[@michaelsimon7414]

Thanks for your assistance. I like you am buying T-Bills on Treasury Direct thanks to your videos. No need to worry about bank failures here. I am also looking forward to your video on I bonds in April 2023 to see what your thoughts are on buy or no buy on them.

[@DaniElle-di4ho]

Banks and t-bills all rely on the same backing against failure: the US government

[@steves7944]

Hi, Jennifer: One additional place I am parking part of my emergency fund, in addition to my high yield savings account and T bill ladder, is Vanguard's Treasury Money Market Fund, which is yielding 4.56%, with a low expense ratio of 0.09%. My emergency fund breakdown is: 52% 13 week T bill ladder, 28% high yield savings, and 20% Vanguard Treasury Money Market, which covers 4-5 months of expenses.

[@TechDude56]

Same here.

[@user-br7rm3ol2s]

Vangaurd Money Market sweep is better than FIdelity, which is 4.25% with a net expense ratio of 0.27%,

[@KimC-ot2jn]

is a high yield savings account the same thing as a Treasury bond or bills?

[@scecily]

How has your experience with Vanguard been as a brokerage firm? I have my savings in Fidelity but have been thinking about moving to Vanguard to take advantage of their money market funds’ higher yields. My concern is how efficient their platform is to trade stocks/ETFs or buy t-bills and their customer service.

[@steves7944]

@@KimC-ot2jn No, a high yield savings account is just a bank account. T bills and bonds are bonds you are purchasing, and you typically have to hold them for a specified time period, although you can sell them on the open market if you have to. A Treasury money market fund can be easily sold at any time, but unlike a high yield savings account it is not FDIC insured.

[@eliseleblanc740]

FYI if your cash settlement account at Fidelity is the Treasury Money Market it’s yielding a little over 4% right now. So if there’s overlap in buying tbills your money is actually getting a decent interest rate. I moved some emergency money that I wasn’t planning on using for tbills from Capital One to Fidelity because it was higher. If your settlement account isn’t the Treasury or Government Money Market it’s easy to switch.

[@MI-6e]

I did same thing. Not trusting banks right now

[@Jp421JP]

Capital one savings have a 3.4% rate. Not as good as 5 but…

[@whazadzay]

I'm new to Fidelity - are you saying the default brokerage account can be changed to this fund with symbol FZFXX? Not seeing where that option is to change on my account.

[@DaniElle-di4ho]

I did same! Fidelity default is SPAXX

[@GraceTao]

@@DaniElle-di4ho Do you mean change it to SPAXX or do you mean change from SPAXX to something else?

[@g.t.richardson6311]

Good content again, I consider myself informed, and probably know more than 95% people about investing and taxes, but admit I probably don’t know 30% of it all. You have helped me learn more in past 6 months Learning every day

[@lifebythenumbers]

Excellent video! Always enjoy your content, Jennifer.

[@GG-xk8nd]

Thanks for explaining the advantages of buying T-bills through a broker (as opposed to Treasury Direct). You make some good points. I’m off to watch your video on the top for brokers for T-bills to learn more!

[@sandrahoward5512]

Thanks, I buy 8 week TBills and SWVXX money market fund. I feel safer in TBills.

[@lilredexptsc]

I started doing this recently too. Only been playing around with a little bit of money. 1000 in a 4 week and 500 for an 8 week and 13 week. I’ll start doing even more soon.

[@morsymusic]

Thanks for this info... Im curious to know, in what scenario would you want to turn off Auto Roll? Also how long do people typically leave Auto Roll on for?

[@ranjhajogi]

Unrelated question. Which camera do you use for filming your videos? I love the video quality and field of view it captures. Thanks.

[@DanteSpinotti1]

Insta-subscribed. Great channel.

[@ninelr222]

I understand that if you buy the bills in your 401k and so you will be paying taxes on withdrawal when retired, you lose the advantage of not paying local and state taxes on your tbills. Thus you might go with CDs if they pay better APY. Going to pay taxes the same, on tbills or cds income.

[@stanhowarth8709]

If you live in a state that does not tax withdrawals from retirement accounts that is not a concern - right?

[@HDCybersun]

Good stuff, thank you for the info. Personally, I keep around 2 months in checkings, 6 months expenses in a HYSA, and all the rest in treasury direct on auto-roll 13 week t-bills.

[@markp5228]

I noticed many of the dates on my T-bills were wrong in Fidelity (positions->t-bill->research->details see:"Issued", Dated", "Accrual", etc. dates). They are also wrong on new issues (click on description in New Issues). Fidelity explained that the Treasury reuses CUSIPs, so the information shown may be from a past issue and not the one you actually own or are buying! Most of mine show settlement dates in 2022. Jennifer, please highlight this in one of your upcoming videos as it can cause LOTS of confusion!

[@guyincognito5771]

I just bought my first T bill a couple of weeks ago with Fidelity, and noticed it was a reissue listed under new, with a date from December of 2022 as well. It is indeed confusing, and I haven't had much luck in finding information either.

[@athenatong3768]

How do I find out t bills’s interest for 1 month, 3 months, 6 months and 12 months? Thanks Jennifer!

[@tammydavidson9277]

My Rollover IRA is at Fidelity. I wanted to follow you in establishing a T-Bill Ladder. I was told by two different "Specialists" in the Fixed Income Dept. that I could not do automatic rollover within a retirement account????? Also, I have looked at the offerings on Tuesday and Thursday for the last several weeks, and can't figure out how you get a full ladder when Fidelity doesn't offer many different maturities.

[@wiseguysmith6519]

With the massive drop in yields the last couple of days, will we see 5% on t bills again?

[@e_piph_a_ny3377]

Thanks for helping us out on laddering T-Bills. I bought two 26-week T-Bills with the same PAR amounts ($40K) on issue dates of 02/09/23 and 03/16/23. Both T-Bills has the same investment rate of 4.895. However Treasury Direct withdrew differing amounts from my bank account. A difference of $11.13. Can you explain this? TIA.

[@thuynguyensanthuy6127]

Thank you for your videos. Your explanations are really helpful and direct.

[@Bbmangood]

The problem is when you buy it through Fidelity you’re not getting the same interest that you would through treasury direct. You can get better interest through treasury direct if you’re willing to spend the time and plan better.

[@DiamondNestEgg]

You get the same price at auction regardless of whether you buy from TD, Fidelity, Schwab or any of the leading brokers.

[@kevink286]

No. Buying through Fidelity, your order always executes at the auction price. There is no difference in the resulting yield between buying directly from TD or Fidelity.

[@dnk4559]

Thank you for this helpful information!

[@sidkris5197]

Could you please do a tutorial or add a section to your videos were you give an example of the calculation of interest earned? Like with real examples of 25 $1000 face value bonds on a 4 week 0 coupon T bill at 5.2% and how much a person would make at time of maturity and how much of that is taxable etc. the calculators in some sites are not helpful. would be greatly appreciated if you could do that. thanks in advance!

[@c.mikiwheeler8170]

She did this in one of her earlier tutorial videos on building a T-Bill ladder. Do a search among her "t-bill ladder" videos and you'll come across it.

[@sidkris5197]

@@c.mikiwheeler8170 thank you. Is it the 60k tbill ladder video?

[@rajk9634]

I look for some info and ievitable you seem to have the right video

[@brickuniversity7195]

Awesome video, just subscribed. Would you mind doing a video on the interest earned on a 4week t bill on AutoRoll? I have 8 months saved for an emergency fund to cover my monthly debt.

[@tanmay-patil]

Please add chapters to your videos, it is really hard to parse through them without chapters.

[@piggsinablankie]

I actually decided what you did as well. I was going to get into the 17 week when they first came out, but decided on staying with the 13 week. I'm glad I did because of the rapidly changing rates, and I wanted my money back faster when my ladder stopped. I stopped it two weeks ago, and have been getting my money back every week since then. By the end of May, I will have it all back. Glad I did that too because as of this writing, it looks like the 2-year is showing 4.3% from being 5.1% just last week. Either a lot of people are getting out as well, or something weird is going on.

[@rc-dt7db]

I have found that cd's have a better payment on short term issues. I just got 2-1 month 25k cd's this morning paying 5.1% on Ameritrade. No auto roll though. I just have to manually rebuy

[@9417NYC]

According to Treasury's website, the 4-week bills' investment rate is 4.304%, and the 8-week is 4.556%. But with Schwab, there are 1-month CD with 4.95% interests. I know T-Bills don't have local tax, but with higher interests rate for CDs, is it still wise to buy T-Bills?

[@daw7773]

It depends on the state because NY has up to12-18% state,city taxes then treasuries would be the best option(no state or city taxes).

[@stevegiannotti2338]

Thanks for the great video! I use T-bills to save towards I bond purchases for 2024 (since I maxed out in 2023). I happen to like the 26 week T-bill (5.183%). It gets me to September, then I can get a 13 week T-bill to get to Jan 2024. With the fed hiking rates, is it possible for the 26 week T-bill to hit 5.5% this year? Let's hope so!

[@TheGermanation]

Let's pray Goldman Sachs is wrong and the Fed doesn't pause on a couple non-systemic bank failures with inflation still being well above their 2% target. Barclays doesn't agree with Goldman so there's still hope for higher rates I suppose.

[@doodsanddudes]

Got a tbill to try out at 5.26%at 26 weeks

[@meowmeow7860]

I understand that T-Bills are protected by the full faith of the U.S. Government... But what happens to T-Bills held at your brokerage if your broker were to fail? Wouldn't you be limited by SIPC insurance of $500k plus whatever additional coverage your broker offers? Also, if T-bills matures after a broker fails... and you can't transfer them before they become cash.... Wouldn't you be limited to receiving $250k cash in SIPC? Thanks!

[@patrickx2420]

So you mentioned the benefits to buying bonds through Fidelity as opposed to Treasury Direct. What are the disadvantages to using Fidelity as compared to Treasury Direct? So I just maybe have heard the disadvantage with Fidelity...Fidelity deducts from your account at time of order and not time of bond purchase.

[@jamesowens2781]

Thank you been thinking about this

[@anneshields8188]

When I get a roll over tbill, the extra is placed in an s&p 500 mutual fund

[@mickeyflanagan4019]

What is the target yield that we would start thinking about longer term treasuries? I seen the last 2 year note was around 4.6% which got me thinking about it. Thanks! Great contet. 👍

[@michaelmiddleton3311]

I've stopped a structured ladder. I look at my Schwab account and all the maturity dates. Then look at cash and determine my next move. I'm still laddering, but that's just how I do it. Shorter horizons like you guys. I'm retired, so I have enough for 2 years if things go south. And I love world travel, so if it gets that bad, I'll go live in Portugal for (?) a month. What rate advantages are there to auto roll? I'm still new to this and don't clearly know why you prefer.

[@DaniElle-di4ho]

If things get bad you’ll go to Portugal for a month? Meaning you think if things get bad the worst will be over in a month? I don’t get this logic, but Portugal sounds fun!

[@michaelmiddleton3311]

@@DaniElle-di4ho Just to see if I like it. Possible seasonal or permanent move.

[@mr.goldenrod291]

Using Fidelity, I have 5 consecutive 4-week Tbills auto-rolling. I’m trying to ride the wave up, and at some point will change to longer terms. The seven day period between a maturity date and the next issue date, funds stay in the core account and earn the core’s rate.

[@kevink286]

You only need 4. On autoroll, Fidelity automatically orders the next bill(s) prior to the 5th auction so the maturing bill gets redeemed just before you need it for the week 5 purchase. The only amount that will remain in core is the discounted amount from that purchase.

[@yking333]

Hi, I’m looking at buying Munis in the secondary market on the Schwab platform, including some that expire in 6-9 months. Is there any different tax treatment since these are “short term”, or does it make no difference if I buy a 6 month vs 5 year muni?

[@sandrarenolds]

hey hey Jennifer I have all my t-bills at Charles Schwab. Are they safe there? Should I move my account to Vanguard? I am so lazy I don't want to, but don't want to lose that money

[@timewithoutconsequence]

Good question, same here. I do enjoy the ease of the site. Treasury Direct was a nightmare.

[@LauraChurch-hs8ki]

I have some 3 months, 13, 17 weeks and 6 months Tbills. I also have the Schwab Money Market at 4.5% and some 6 months and one year brokered CDs at 5.4%. Due to the latest banking crisis, the rates are starting to come down and it appears they will continue to do so. I am thinking of cancelling the autoroll on the shorter term TBills and locking in the higher 5.4% for more CDs before they go down. It helps I live in Florida and no state tax. Any thoughts on that?

[@MeetLou]

Do you think seeing 6% is possible and what would it take

[@PhilTomson]

Didn't think we'd see 6% in this cycle, but now that the Treasury is basically saying that the FDIC insurance limit is now unlimited, who knows?

[@andrealitvin]

How can I buy A T-Bill Ladder at Fidelity?

[@thethracian3998]

Hello Ms. Jennifer, hopefully investors at signature caught your "don't be a bank bail in victim" video, you must have your ouija board on full throttle. Keep us informed. I need to know if I'm about to fall off my t-bill ladder. That could be painful.

[@Dailyviewer482]

Thanks for this video. This was the first place I heard about the Schwab lag and the reason I opened a Fidelity account. Now 7 months since this video is the 17wk Tbill on auto roll now? I suppose I’ll find out soon enough

[@DiamondNestEgg]

I don't know about the 17-week honestly because we buy all our Treasuries through Fidelity at the moment. If you find out, do come back & let everyone know if you get the opportunity!

[@rajk9634]

Can you do a video about deminimis rule for secondary market t-bills?

[@GeekyMom]

Thank you for pointing out that Schwab has 1 week lag. I setup 4 week tbill ladder, and was surprised that I had 1 week hole. I would have gone with Fidelity if I had known that. Schwab also have an extremely low interest rate on the sweep account. Something like 0.45%? Does Fidelity have better interest rate on the sweep account?

[@kayab5827]

I just checked 4/6/2023 Fidelity has about a 4.7% on their Brokerage sweep account while Schwab has .5%. Fidelity has a lag time too! But bcz the interest rate is better on the Sweep account, you don't feel it so much.

[@hoodrooster224]

How rude of me. I become so engrossed in your videos, that I forget to thumbs-up them.

[@gregbrooks4450]

Why just emergency funds? At 5%+ this is just a good investment.

[@rogerokon9821]

Why not buy a TBIL or XBIL ETF from Fidelity

[@M.M_444]

We have an emergency business fund of about 100G into our BOFA account. Not earning any interest. Where is the best way to keep our business emergency funds with interest? Please advise. Thanks

[@richmurphy8144]

Hi Jen, Great info on building bond ladders. Is building a TIPS ladder exactly the same process, or are there nuances to TIPS vs T-bills vs CDs? thanks for all you do!

[@DiamondNestEgg]

The laddering concept is the similar, but TIPS work differently from I-Bonds & CDs. This TIPS video & some of the other TIPS videos on this channel may be helpful: kzbin.info/www/bejne/gHzFp6eamNiDia8

[@jademan2470]

At TreasuryDirect using auto roll, how many days are you out of the market during each auto roll.?

[@SumitGupta-nh1ki]

Would u now be putting money back in the market w maturing short term T bills with likely pausing of rate hikes?

[@jimroberts6176]

I assume Vanguard does not have auto roll (?)

[@DonnieBarkie]

How do you feel about a tbill etf like $BIL ?

[@Yahooforreal124]

Jennifer, Can I sell T-Bills on Vanguard and get liquidity same day or next day? How do I do that?

[@plnwtn]

In these uncertain times when the equity markets are so over-valued and there are so many indicators of an upcoming potentially large recession that would reset equity markets to more reasonable valuations, and when interest rates on short term treasuries are in the 4-5% range, does it make sense, at least in one's retirement accounts, to preserve portfolio value by temporarily getting out of equities and into treasuries, and then going back to one's asset allocation sometime during the recession once equity markets are not so over-valued? And, with this reset as a goal, does it make more sense to do this in treasury ladders, or to do it in ladders using short term treasury ETFs?

[@charleskincannon8792]

Are T Bills at Fidelity or Schwab subject to the 250K FDIC limit or are they covered by the Fed.

[@SpaceClick]

The FDIC does not insure U.S. Treasury bills, bonds or notes, but these investments are backed by the full faith and credit of the United States government.

[@andrealitvin]

Can we do it with Robinhood?

[@jenniferg3251]

I noticed this week that 13 and 17-week T bills have almost identical rates. I don't really care about the auto-rollover feature as I'm still adding money each month and growing this money. I'm wondering if it's worth it to shift all my T bills over to 13 week from 17 when they mature. Hmmm.

[@jasonflores1990]

I wonder if you chase bank bonuses, with that much capital it's not that hard to get 7-8% from most banks. For example, Wells Fargo offer for $525 / $25k nets around 8% for a 3 month hold.

[@vtrep737]

How is retiree setup different specifically?

[@TheNamche]

Is it possible that the auto-roll time lag at Schwab versus Fidelity had anything to do w/ a difference in Pre-approved option levels? Maybe at Fidelity prior permission is given to auto-roll unsettled cash? Or even simpler, was there an existing settled cash balance at Fidelity that allowed the immediate auto-roll?

[@njwebwiz]

@DiamondNestEgg I'm getting ready to build my first T-Bill ladder thanks to your great videos. However, I wonder if you can address any potential risk with T-Bills related to the upcoming debt ceiling fight in Congress. I realize it's a long shot and I know there would be massive global problems if the US defaults on any of its debt, but is there any chance that the Treasury would NOT pay out a matured T-Bill on time? Would it be safe to just sit in a high-yield account around 3.6% for now, then start a T-Bill ladder in the fall after the debt ceiling issue is (hopefully) resolved? Thanks!

[@bethy4954]

I'd like an update on the debt ceiling situation, too. I feel like it is still something to be slightly concerned about.

[@johnsmith-dm2tq]

bond question? well bill question? if i am building a ladder and the propper time to buy is now, and powell is giving a f.o.m.c. "speech" on the 22nd where i am pretty sure he will raise rates. Is it worth it to wait a week? will you see any change in that week? basically, do you know how long it takes for a rate hike to take effect? i mean 4.66 is good, but if i can get 5 i'll wait a week.

[@jeffknecht2733]

I have a Money Market Fund (SWVXX) 4.485% at Schwab.

[@TheLexrockett]

Do you think the recent events with SVB and other potential bank disasters will affect T-bill rates?

[@modhua4497]

Newtekbank savings also offer 5% on Savings Account

[@debbieburke-gravetter1623]

How do I open a Fidelity Brokerage account? Are there any fees? I have been purchasing I-bonds and T-bills through Treasury Direct.

[@bfgillan]

I'm curious if you have ever looked at ETF like TBIL. I haven't dug in enough to figure out if the returns are close to what you can achieve by directly buying TBils. If the return is close, seems like this would avoid hassle with the need to ladder, set up auto-roll (or roll on your own). Seems like another advantage would be no taxes until you sell the ETF.

[@steves7944]

Only potential issue is when you sell an ETF, you are subject to market price risk, as opposed to holding actual T bills to maturity. I don't know anything about the EFT you mentioned, but if they are holding older positions with lower yields, it is possible they could sell at a discount at the time you go to sell it.