Why Buy T-Bills?
They’ve recently reached rates of over 6% and are one of the most attractive investments and ways to keep cash.
There are several advantages to buying US Treasury bills, which are a type of low-risk, short-term investment issued by the US government.
- Safety: Treasury bills are considered to be among the safest investments because they are backed by the full faith and credit of the US government. This means that the government is committed to paying the face value of the T-bill when it matures.
- Liquidity: T-bills are very liquid, which means they can be easily bought and sold in the secondary market. This makes them a good choice for investors who need to access their money quickly or who may need to sell their investments at short notice.
- Low risk: T-bills are considered to be low risk because they are backed by the government and have a very short term to maturity. This means that investors are not exposed to the possibility of interest rate fluctuations or other risks over a long period of time.
- High interest rates: T-bills often offer higher interest rates than other types of low-risk investments, such as bank certificates of deposit (CDs). This makes them a good choice for investors who are looking for a higher return on their money.
Warren Buffet, the CEO of Berkshire Hathaway, is known for his investment strategies that focus on long-term value and steady, reliable returns. He has said in the past that he considers Treasury bills to be a good investment because of their low risk and relative stability.
Can you buy T-Bills as a foreigner?
As a foreigner, you can’t buy treasury bills from treasurydirect.gov website as a foreigner. That is only for US citizens.
You can buy U.S. Treasury bills through a bank or brokerage account that allows you to purchase U.S. securities.
Retirement savers and investors who already have brokerage accounts are often better off buying bonds on the secondary market or with exchange-traded funds (ETFs). Treasury money market accounts also offer more convenience and liquidity than TreasuryDirect.
Some banks and brokerages may have minimum account balance requirements or other restrictions for purchasing U.S. Treasury bills. It is also possible to buy U.S. Treasury bills through a government securities broker or dealer, who can help facilitate the purchase on your behalf. You may need to provide documentation such as a passport or other identification to open an account and buy U.S. Treasury bills.
It is important to note that buying U.S. Treasury bills involves some risk, as the value of the bills may fluctuate due to changes in interest rates or other market conditions.
Interactive Brokers
One place to buy treasury bills is interactive brokers.
You can open an account on Interactive Brokers here.
“That is only for US citizens.”
This is not accurate, it seems like non-citizen US residents may also buy treasury bills.