My current 4-week T-Bill ladder has been working smoothly, with the money going in and out of the C of I so that I don’t have to do anything but watch the interest add up. But, this week’s T-Bill auction results gave a disappointing 3.63% rate, which is the post-tax equivalent of 4.13% APR for me. I can already get that at Presidential Premier Savings.
So I think I’m going to switch to 6-month T-Bills. I chose 4-week T-Bills for their relative liquidity, as I wanted to use it as an emergency fund. But since I usually have enough cash in various accounts while earning bank bonuses, I want to grab higher yields. My savings horizons are longer than 6-months too. The recent 6-month T-Bill rates are about 4.33%, or 4.92% APR bank equivalent for me. That’s much higher than any 6-month bank CD. I think I may be getting too obsessed with optimizing my cash returns, but it only takes a few clicks =)