The 'little guy' market investor is often right; Treasury bills

What is the difference between US Government Treasury bills bought through a bank and those bought by mail from the nearest Treasury office? I am interested in security. W.R.

Original issue treasury bills (T-bills) may be purchased from a bank or by mail from the Federal Reserve Bank or branch serving your area. Original-issue T-bills purchased through a bank will be identical to those you purchase by mail if they are from the same auction. You will likely pay the bank an agent's fee for purchasing the T-bills on your behalf. But as long as you are considering original issue T-bills, there will be no other difference.

Banks do, however, offer T-bills previously owned. That is, they operate a secondary market where owners may sell T-bills before their maturity. All T-bills, whether bought at origin or later on the secondary market, are direct obligations of the US Government and offer the same security -- full backing by the US Treasury.

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK