T-Bills: The Cash Solution

T-Bills: The Cash Solution

January 11, 2019 Resource Center 0 Comments

By Aaron Izenstark, Co-Founder and Chief Investment Officer

Treasury bills are an often underutilized solution for investors with excess cash. They offer short-term flexibility, a government guarantee, and lately, have yielded higher returns than money market accounts.

The chart below (Fig. 1) illustrates the 4-Week Treasury Bill rate exploding over the past few years. The current rate is just under 2.40%.

 

Fig. 1 Board of Governors of the Federal Reserve System (US), 4-Week Treasury Bill: Secondary Market Rate [TB4WK], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/TB4WK, February 12, 2019.

 

For more information about our cash solution, please contact your Regional Product Specialist.