Investing in Treasury Bills
Currently, you can invest in 1-month, 3-month, 6-month and 1-year Treasury Bills in the Finvest app. In the near future, we plan to also launch investing products for money-market funds, long-term Treasury Notes, Municipal Bonds, Certificates of Deposits and international bonds. We also plan to offer cash management and high-yield savings accounts.
Yes it does! Unlike many apps, we want to make sure any univested cash on the Finvest app also makes interest. We automatically sweep any uninvested cash into the Dreyfus Government Cash Management fund. The fund is a government money market fund and pursues its investment objective by investing only in government securities, repurchase agreements collateralized solely by government securities and/or cash, and cash. The fund has over $108 billion in assets and has a 4.43% yield - which is higher than most savings accounts.
Yes you can place an order anytime in the Finvest app. Traditionally, the markets are open from 9:30 AM ET-4 PM ET during regular business days (Monday-Friday, except holidays). But with extended-hours trading, you can execute trades anytime. Orders placed outside these hours will be queued to process when the market opens on the next trading day. We will execute your trade once the market opens.
Treasury Bills are short-term debt securities issued by the US Government. The US government will pay you a fixed interest rate + your investment (”principal”) at the end of the T-Bill maturity. Treasury Bills are considered to be of one of the safest assets in the world because they are backed by the full-faith of the US government.
The interest rate on Treasury bills (or T-bills) are at an all-time high since 2007. You can earn up to 5.5% by investing in Treasury Bills. Several savings accounts will give you far lower interest.
When you buy a Treasury Bill and hold to maturity, your interest rate is locked in! Treasury Bills are backed by the full-faith of the US governmentYou also don’t have to pay state or local taxes on the interest earned!
On Finvest, you can buy Treasury Bills with maturities of 1 month, 3 month, 6 month and 1 year.
For example, if you invest $10,000 (”principal”) in a 1-month Treasury Bill with a 5.5% annual interest rate, you will be paid your investment (”principal”) + pro-rated interest at the end of 1-month Treasury Bills are issued at a discount to par value (also called face value).
At maturity, you will be paid the par amount of the bill - the interest you earn is the difference between the par value and the amount you paid.
For example, let's say the par value of the T-bill is $100 and you paid $95. When the T-Bill matures, you will be paid $100 - since you paid $95 - the interest you earned is $5.
When your Treasury Bill matures, we will return your investment + interest back to your bank account. It might take a few days for the money to reach your bank account
You can sell your Treasury Bill anytime on Finvest. Treasury Bills are highly liquid securitiesYou can sell Treasury Bills during normal trading hours