Now that interest rates and bond yields are creeping up, I’m incentivized to do something with spare cash, rather than leaving it sitting on its fat ass earning nothing (or next to nothing in a savings account).
I like CD’s, but holding them for less than a year doesn’t earn much. In addition, if I were to suddenly need that money, I’d get penalized if I cashed out early.
So I’ve been trying buying Treasury bonds through my Schwab account. It’s actually pretty easy, and there are no fees appended to the transaction. I can buy three, six, or nine month bonds if I want to. I tried buying a three month bond and got my 2.2% yield when it matured.
What’s this I see on Schwab’s bond transaction page about selling bonds? Something about asking for bids. What’s involved with this? It’d be good to know if I have an emergency and have to get my hands on cash.
Who’s an expert in this field. Keep in mind I’m a newbie and I’m still struggling to learn the new vocabulary.