Treasury Direct vs. Brokered T-Bills - Which is Better?
Vložit
- čas přidán 25. 07. 2024
- Treasury Bills are popular cash investments to earn over 5.50% APY on your savings! In this video, we'll discuss whether Treasury Direct or your favorite broker offers the best user experience based on fees, customer service, minimum purchase quantities, and more. I'll also share why some investors like me prefer buying Treasury Bills on Fidelity, Charles Schwab, Vanguard, and Merrill Edge way more than on Treasury Direct!
🕗 TIMESTAMPS:
0:00 Introduction
0:17 Recent News on Treasury Rates
1:49 Treasury Direct
2:47 Downsides of Treasury Direct
5:10 Brokered Treasuries
8:17 Which is Better For You?
9:18 Other Options?
🎥 How to Buy Treasury Bills on Treasury Direct: • How to Buy Treasury Bi...
🎥 How to Buy Treasury Bills on Fidelity: • How to Buy Treasury Bi...
🎥 How to Buy Treasury Bills on Charles Schwab: • STOP Buying Bank CDs -...
🎥 How to Buy Treasury Bills on Merrill Edge: • How to Buy Treasuries ...
🎥 How to Buy Treasury Bills on Vanguard: • How to Buy Treasury Bi...
⚡️To Unlock A 1% APY Boost on Marcus by Goldman Sachs (HYSA): www.marcus.com/share/ERI-V1H-...
--------------------------------------------------
🎵 Audio Track
- Osaki x Sleepermane x Casiio - Brooch
- Provided by Lofi Records
- Watch: • Osaki x Sleepermane x ...
- Download/Stream: fanlink.to/Evergarden
--------------------------------------------------
#treasurybills #treasurydirect #brokeredtreasuries
* All videos are for entertainment & educational purposes only and should not be construed as financial or investment advice. Links above include referrals that help financially support me and the channel. Referral offers and information provided in the video are accurate at the time of the posting date but may not be so in the future.
Thx for the great vid. Very informative 👍
Great video thank u , the reminder about locked account in treasury direct is very important . Thanks !
Can u also share your personal experience of buying t bills and cd via vanguard VS fidelity VS Charles Schwab VS Merrill please ? Thanks
Happy to!
Schwab is good. You can choose to Autoroll if you like as well. Good to see you back!
Another vote for Schwab! Good to see you as always, Matt!
Eric where have you been ? I have only used TD for the i-bonds over the past 3 yrs. Opening various entity i-bond accounts was tedious and time consuming. The call reps at TD are timed and graded on how many calls they complete, so I am not a big fan. Schwab and Fidelity have great CSRs but don't handle special Treasury issues like i-bonds and TIPS (unless you are willing to pay for private client services, then maybe they do ,I am not sure). I have been selling off my i-bonds but I will keep my accounts open. In case you have ever wondered, you can keep an i-bond account open and inactive with a zero balance for up to 2 years ( so there is a nugget of TD trivia I bet you didn't know 😆). Hope to see more of your videos, you do an excellent job.
So good to see you again, Ed! And no, I did not know about that nugget of trivia 😆. Shucks again to hear about all those pesky calls you had to make to get your TD accounts fixed up, but I am glad to hear that you're having a good time with Fidelity and Schwab!
Had a couple projects for work over the last month so no videos recently, but now that those are out of the way I hope I have a bit more time to ramble on about my thoughts on investing!
great video, I prefer TD alot more flexibility.
I bought my first t bill through Fidelity. It was easy. I signed up for Treasury Direct but I don’t like the website.
Seems like the prevailing opinion! Fidelity's definitely a much better experience 🙂
In addition, Treasury Direct has the auto roll feature.
Can't you auto-roll T-bills with Schwab or other brokers ?
Yep! Auto roll is certainly a nice feature!
No auto-roll when using Vanguard.
I do mine through Vanguard. At least for me it’s way easier than Treasury Direct.
100%!
I prefer Treasury direct as my t-bills won't count in the $250k limit in bank/brokerage accounts that is "insured". So these advantages of brokered CDs are meaningless to me.
Happy to discuss this in a future video! Many brokers like Fidelity register securities under a "street name." This means treasuries are registered as belonging to the brokerage firm for the benefit of its clients. The brokerage firm records the investor as the owner who retains all rights in the treasuries. This money cannot legally be used to pay off a brokerage's debt, so these assets are generally regarded as "protected" lest a brokerage commit fraud. Of course, if they do, this is when SIPC insurance would kick in assuming the brokerage also fails.
The largest brokers like Fidelity and Schwab do also carry private umbrella insurance in the event of failures (e.g. $1 billion in Fidelity from Lloyd's of London), which also contributes to the "perceived safety" of brokered products.
those are valid points but things are so crazy in this world we are looking at very very fat tails, and even if you eventually get covered how much trouble in the meantime having to worry or do without needed funds....don't trust any of these guys as far as I can spit! @@EricTangOfficial
MF Global customers were eventually covered but I know a guy who had to do without his $600k for over 2 years first! @@EricTangOfficial
Some have found that Schwab has the best customer service.
They've definitely gone above and beyond for multiple people, including me! 🙂
Clickity-clack. Is that the mouse?
Can you purchase T-Bill with a credit card?
I haven't found any reputable broker that accepts Treasury Bill purchases via a credit card. If there is one, feel free to let me know!