Schwab is taking me for a ride!

[Cabin111]

There's not a fund on the list that you'd call better? I mean than having to buy bills every day.

I can't think of anything more safe than short term (less than 1 year) US Treasuries. A treasury bond fund can rise and fall. Holding short term bonds to maturity is a known quality.

It's just the manual trading (every time I have a few thousand bucks in Schwab Bank), that becomes the headache...

 

[BKR88]

I will be sitting there with maybe $50,000. earning 1/2 of one percent, unless I make a manual move. You have to be on top of their sweeps (or trade) at all times!!!

I have CD maturities on my calendar just like my niece/nephew birthdays.

 

[newwurldmn]

New issued treasury bills minumium investment is $1k a bond, in every brokerage I came across. For $9k you can buy 9 bonds.

Sweep cash is always earning the least because it is more like a liquidty support than a product.

Etrade is requiring me to buy a 1000 bonds minimum or I have to call the bond desk for smaller size. It doesn’t feel right. That’s 1 million notional.

 

[mervyn]

Etrade is requiring me to buy a 1000 bonds minimum or I have to call the bond desk for smaller size. It doesn’t feel right. That’s 1 million notional.

negative. 1 bond has a face value of 1000, you probably read it wrong, $1000 minimum.

 

[newwurldmn]

negative. 1 bond has a face value of 1000, you probably read it wrong, $1000 minimum.

I’m going to call their bond desk next week. The site required me to buy a 1000 bonds with 1000 dollars of face value. My private client guy confirmed this but it doesn’t make sense.

 

[newwurldmn]

negative. 1 bond has a face value of 1000, you probably read it wrong, $1000 minimum.

This is the current screen at Etrade. 300 min for some, 1000 min for others. So the first bond is quoted 25,000 (25MM notional) up but 1,000 min (1MM notional). This doesn't make sense to me:

Maybe this is a 5am thing. I will check it 10am.

 

[M.W.]

Their requirements change pending time of day? Funny broker...time to change brokers if there is suspicion this could be the culprit.

This is the current screen at Etrade. 300 min for some, 1000 min for others. So the first bond is quoted 25,000 (25MM notional) up but 1,000 min (1MM notional). This doesn't make sense to me:

View attachment 313166

Maybe this is a 5am thing. I will check it 10am.

 

[M.W.]

Something about the attitude of Republicans makes me nervous going into June. Historically the US has defaulted 4 times on its debt. The odds are obviously hugely stacked against such outcome, but they are not zero and this might matter to some. That's all I am saying. I might move that closer to home for a while into a bank account that also pays a juicy return.

 

[newwurldmn]

negative. 1 bond has a face value of 1000, you probably read it wrong, $1000 minimum.

Follow up: It looks like you were right. I was able to trade a 10 lot despite it showing 350 minimum.

 

[mervyn]

Something about the attitude of Republicans makes me nervous going into June. Historically the US has defaulted 4 times on its debt. The odds are obviously hugely stacked against such outcome, but they are not zero and this might matter to some. That's all I am saying. I might move that closer to home for a while into a bank account that also pays a juicy return.

That's a prudent thing to do. My last t bill maturity date is 6/15, bought 65k 1 Month CD yesterday at 4.8% instead, otherwise holding cash until the issue is cleared. Also, the 4 week rate came down a lot, yesterday's 4wk auction yield was 3.89%, the lowest since January.