The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: neonlight on June 15, 2019, 05:06:38 PM
-
Online info says that the current 1 year treasury yield as of June 13, 2019 is 2%, why do people want to buy treasury when the yield is less than USD term deposits savings in some big commercial banks. I deposited a annual fixed term deposit in Standard Chartered Hong Kong and it is yielding me 2.4% with some smaller banks giving me 3.05% in Singapore.
-
Bonds have potential for price appreciation. Bank deposits don't.
-
No state income tax on treasury interest.
-
No state income tax on treasury interest.
Thank you.
Two observation
1) even with statement of, say 30% the fixed term deposit still beat bills most of the times.
2) there is no capital gain tax in Hong Kong and Singapore which is where I place my termed savings
-
Bonds have potential for price appreciation. Bank deposits don't.
I am comparing fixed termed deposits (might be call timed deposits in US) to bills. Not bonds
-
Four week Treasury notes bought at auction this week paid 2.27 percent annualized. No state income tax. I buy them through Fidelity. CD's here are 2.6 to 2.8 percent for a one year term directly from various institutions. I do both, depending on the need for liquidity.