Fidelity To Buy Treasury Bills

bananaRama1234 | Dec 3, 2024 | 63 posts since 2023

Anyone here buy US treasury bills via Fidelity? I currently use Treasury Direct only because I already have an account to manage EE savings bonds converted electronically last year. Just wondering what dis/advantages there are in using a broker vs treasury direct for US treasury bills/notes. I know the TD website is dated and clunky but I guess I'm used to it. It functions well enough for my needs. I also have a Fidelity account and am wondering if it's worth moving there. Thank you in advance for you inputs!

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Answers

txFish1 | Dec 3, 2024 | 476 posts since 2023

I have been buying T-bills at Fidelity for quite some time. The only 2 disadvantages that I am aware of is you have to buy in $1000 increments at Fidelity and you may lose a couple of basis points if you buy on the secondary market. The advantages for me anyway are when one matures the funds are in my account and ready to go on the same day it matures and also the ease of having most everything in one spot. You can also enroll in AutoRoll at Fidelity on New issues. If you choose to buy notes or bonds the income is deposited into your money market account. The convenience is worth it for me.

bananaRama1234 | Dec 3, 2024 | 63 posts since 2023

After you enroll in AutoRoll and change mind later, can you make the edit yourself or do you need to call Fidelity?

txFish1 | Dec 3, 2024 | 476 posts since 2023

bananaRama I only used the AutoRoll feature when I first started several years ago but I was able to make the edit myself but that was about 5 years ago but I suspect it is the same now.

Hooked | Dec 3, 2024 | 236 posts since 2019

@bananaRama1234, yes, you can still cancel AutoRoll online (I think about a week before it automatically renews).

HollyHolly | Dec 3, 2024 | 89 posts since 2015

I regularly buy Treasuries at Fidelity. It is very easy. At maturity the proceeds are placed in your account by 9 am on the maturity date and you can use the money to trade at Fidelity that day. (Compare with Etrade where you don't have the proceeds of a matured Treas. until the next day after it matures unless you call up and complain, Etrade is using your money that day.) I have dealt with several brokerage firms over the years and believe that Fidelity is the best firm overall that I have ever dealt with.

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