pls advice: U.S. Treasury: Short Term Treasury Notes (4-Week-52-Week Maturity)

[shortduck]

src: https://slickdeals.net/f/16642112-short-term-t-bills-have-great-returns-right-now-interest-rates-of-5-11-to-5-51-depending-on-duration-selected

I am saving for my house down payment, which I need to pay around July 15th. I am thinking of parking my money here so that I can get some interest on it.

I am asking you, gurus, to pls tell me if this will be a good 4/8 week investment.

Please advice

[Financial.Velociraptor]

If you buy an actual Treasury bond that matures prior to the date you need it, that is a slam dunk.  But we aren't talking about thousands of dollars in your pocket. Unless this is a v.large downpayment, it might not be worth the hassle.

[shortduck]

I will do 4 week and then see the rate. If good then will do another 4 weeks. I need money July 15th

[ChpBstrd]

Sounds like a good plan to me. Just allow plenty of time for ACH transfers so you don't end up losing some of your interest to wire fees!

Note that you could put your money into a money market fund like VMFXX for the week or two between the treasury's maturity and the down payment date.

Also bear in mind that a national debt default could delay repayment and cause a seizure in money market funds, although most observers consider that to be an outlier risk. If that did occur, it would probably be in your financial interest for the house deal to fall through due to unforeseen circumstances.

[dividendman]

Sounds like a good plan to me. Just allow plenty of time for ACH transfers so you don't end up losing some of your interest to wire fees!

Note that you could put your money into a money market fund like VMFXX for the week or two between the treasury's maturity and the down payment date.

Also bear in mind that a national debt default could delay repayment and cause a seizure in money market funds, although most observers consider that to be an outlier risk. If that did occur, it would probably be in your financial interest for the house deal to fall through due to unforeseen circumstances.

There's also an option in TreasuryDirect to roll into the next one so you don't have to worry about transfers in and out of your bank. When you need the money you can stop the rollover into the next 4-week treasury.

TreasuryDirect also has CofI (Certificate of Indebtedness - kind of like a bank account) that lets you hold money there when it's not in a Treasury Bill so you don't need to keep going in and out of your bank account, if that's a problem.

[shortduck]

Thanks for all the wonderful replies

[MustacheAndaHalf]

As I recall, escrow requires a down payment in the form of a bank check.  I'd suggest a very short term CD at a local bank.  That's a tradeoff between having the money where it's needed (near you ready for a bank check) and a slight difference between CD rates and treasury bills.