bank CDs vs. T-bills

Financial Planning - Financial planning in general. (Moderated) 

  Yahoo!   Google   Windows Live   del.icio.us   digg   Netscape

Subject Author Date bank CDs vs. T-bills Beliavsky 08-21-2007
Posted by Beliavsky on August 21, 2007, 10:29 am In the U.S., studies of stocks vs. bonds typically use Treasury instruments as the bond investment. Currently, 1-year T-bill yields are 4.15% vs. about 5.6% for the highest-yielding 1-year bank CDs. I wonder what the spread has typically been. If, historically, investors have been able to find yields about 1% over Treasuries for investments of the same duration, and with FDIC protection (at least for the first $100K), that would argue for a higher allocation to fixed income using CD's than if Treasury bonds are used. One would need to shop around annually for the highest rates. Similar Threads Posted bank April 8, 2007, 6:44 pm When a bank underwrites.... April 10, 2007, 8:33 am Equation for how much would you have to have in the bank.... August 2, 2007, 6:32 am Bank of America? November 16, 2007, 5:13 pm Bank Accounts June 13, 2008, 7:24 pm Indymac Bank July 13, 2008, 4:45 pm IRA To Swiss Bank September 13, 2008, 3:21 pm open a bank account November 15, 2006, 4:11 pm Buy bank stocks w/8.5% dividend? January 20, 2008, 12:06 pm fdic ?--protecting bank accounts ? March 9, 2007, 4:59 am