If something is important to me I always want to be as close as possible to first in line. Therefore, I'm in agreement with your above statement and will only buy only U.S. Treasuries and AVOID any bank / FDIC product.jhogue wrote: ↑Tue Dec 10, 2019 8:38 amAlly savings account interest rate is currently 1.70%.
3 month T-bill interest rate is currently 1.59%. Simple to ladder and put on auto-roll.
The difference is 0.11% ( further reduced by state and local taxes).
So why pick FDIC insurance coverage (which had to be bailed out by Congress in 2008) on a bank that effectively defaulted and had to be bailed out by TARP funds, instead of US Treasury bills, which were then and remain today the global reserve currency?
In the next banking crisis in the US (and there will be one) you want to hold Cash in the highest quality assets you can get. Every FDIC-insured account holder will be standing in line behind every US Treasury holder.