Treasury Bills — What happens at “maturity”?
I’ve researched the process of buying T-bills and have an account set up. My question is what happens after a 26-week investment period(s) is/are over? If I wanted, could I get the money back that was invested (plus the interest)? How would I orchestrate that ? I’ve only heard about “rolling it over,” and would like to know what the options are. Thanks!
Terry Says
When you purchase your bonds — or at any time until a week before they mature — you can designate up to 3 automatic renewals. If you change your mind, go into your account and click on “manage” bonds, and you will see how many renewals are scheduled. Just change that number to 0, and they day after they mature the money will be automatically dropped into the account you have designated.
You will notice that when you PURCHASE the bonds, the full amount (say $10,000) is not withdrawn. The amount not withdrawn — a few hundred dollars — is your INTEREST. It is paid upfront! So at maturity, if you elect not to renew, the full $10,000 investment will be put back into your linked bank account.
