5/18/2019 This Is A Much Better Alternative To Keeping Your Money In A Bank | Zero Hedge

This Is A Much Better Alternative To Keeping Your Money In A

Bank

by Tyler Durden
Fri, 05/17/2019 - 17:05

Authored by Simon Black via SovereignMan.com,

The banking scandals are all starting to blur together.

When I heard that five big banks were fined by regulators today, I had to think…
Was that the scandal over employees creating fake accounts? No. Was it the scandal over recommending
investments “highly likely to lose value”? No, not that one either.

Today’s fine didn’t stem from when banks scammed customers into buying auto insurance they didn’t
need, illegally repossessed vehicles, accidentally foreclosed on homes, colluded to defraud investors, or
rigged interest rates.

This time the banks colluded to rig foreign exchange rates. They even informed competitors on their
own clients’ transactions, and coordinated to sit out certain auctions to manipulate the rates.

The most persistent myth in the world has got to be that banks are a safe place to keep your money.
If they aren’t outright screwing you, they are risking your money on terrible investments, and not giving you
any of the return.

And the organizations meant to ride to the rescue– the FDIC, the Federal Reserve, and the US government–
are all practically bankrupt.

You still need to keep cash somewhere though, especially today when essentially all asset classes are at all
time highs.

But large US banks are NOT the place to keep all your cash. They don’t even give you a tenth of a
percent in interest for the pleasure of being treated like a doormat.

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That’s why I circumvent the banking system and hold a good chunk of my cash right now in US government
Treasury Bills.

Now, before you call the authorities to report that someone has kidnapped Simon Black and replaced him
with a US Treasury Department bureaucrat, let me explain.

I would NEVER put my money into long-term bonds in a massively indebted country like the US.
People who buy 30 year US government bonds are insane. It’s hard to imagine what the country is going to
look like next YEAR, let alone 30 years from now.
But the shortest duration bonds (technically known as ‘bills’) are just 28 days.
And however you feel about the US government, or even Donald Trump, it’s a pretty safe bet that they’re
not going to default in the next four weeks.

While other people risk their money buying stocks at record high prices, or hold their money in a risky bank
for a 0.02% interest rate, 28-day T-bills pay an annualized return of 2.4%.

The best way to buy 28-day T-Bills is to open an account at Treasury Direct, which you can do here.
All you’ll need is a US Social Security Number and a US bank account. It’s a remarkably simple process.

The government sells 28-day T-bills once a week. So when you want to purchase, you just log in, click a
few buttons to indicate how much you want to buy, and the Treasury Department will automatically debit
the money directly from your bank account to buy the T-bill.
You can also choose to automatically roll over four weeks later into a new T-bill. Or you can choose to have
the proceeds deposited directly into your bank account.

One very easy way to do it is to split your savings into fourths; so let’s say you want to park $400,000 into
28-day T-bills.

You’d buy $100,000 worth on January 1st, then another $100,000 on January 8th, then another $100,000
on January 15th, and another $100,000 on January 21st.

Then, the following week, on January 28th, the original $100,000 T-bill that you purchased on January 1st
will mature, and you could roll that over for another 28-days.

Or if you find you need the money, you could choose to redirect the funds back to your bank account.
This is an easy approach that could literally earn you 100x more interest than what your bank is
paying you, without the hassle.

It’s pretty pathetic that the Treasury Department is an easier financial partner to deal with than the banking
system, but at least for now, that’s the reality.

13950  23 

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PerilouseTimes 1 minute ago  

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Never keep more than a couple hundred dollars in the bank. Keep a couple thousand at home in a
safe and buy high quality guns, ammo, chainsaws, guitars, stuff you find in a pawn shop with the
rest of your money.

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PoopFilled 2 minutes ago  
Gold, B1tchez!
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Miner 13 minutes ago  

Thank you.  This was genuinely helpful.
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Ratfish 13 minutes ago  

True inflation is closer to 10% and what's really insane is that you have to pay taxes on treasury
interest.
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Celotex 4 minutes ago  

You must pay federal income taxes on the federal instruments, but not state income taxes.
So at least there's that
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Art Van Delay 15 minutes ago  

 

Thank you Simon Black and SovereignMan for this marketing article and product placement
of Treasury Direct.

PS. Nice twist at the end, forgetting to pimp the buy the magical plan B PDF at $19.99
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inhibi 18 minutes ago  

Hahahahaha yeah, but no thanks.

Id rather keep my money in a schwab account or similar, with a nice healthy mix of silver & gold
bullion, stocks, and cash. 

And land for other assets.

Not buying t bills ffs. Is this an article or an advertisement? Hard to discern these days....
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HopefulJoe 13 minutes ago  

Better go read the fine print on you Schwab account and all the other stock trading accounts,
for "security reasons" you can no longer just get your "cash" back, you are just as "at risk"
j t lik h it i i b k
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just like you are when it is in a bank.

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3

Yellow_Snow 31 minutes ago  

Buy BTC - Digital Gold - Gold 2.0

Be your own bank  !!!

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1 5

tmosley 22 minutes ago  

Hire your own guards! And your own cybersecurity experts! And if that fails and you still get
robbed, its your own fault for being stupid!
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EHM 19 minutes ago  

Gold cannot be copied to infinity.
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HopefulJoe 35 minutes ago  

Want real wealth protection? GOLD AND SILVER, GOLD AND SILVER! Buy it, hold it, get a gun and
plenty of ammo, that is your only true wealth protection these days...
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systemsplanet 35 minutes ago  

Or if you'd rather earn more than inflation, in an inflation-free currency, buy BTC.
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1 4

I am a Man I am Forty 37 minutes ago  

If you don't want to hassle with that you can just do short term t-bills through Schwab or any other
discount broker. They don't charge commissions/fees. Tiny bid/ask spread. Above is good for
individual, but it can be a pain if it's a company, partnership, etc.
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Schrodinger's Ghost Load 37 minutes ago  

It's a pretty safe bet that when they default it will be suddenly, and without warning.  Don't expect
them to telegraph it.
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Totally_Disillusioned 25 minutes ago  

Other than to their cronies, when has the cabal ever alerted the little guy to anything?
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Anemometer 39 minutes ago  

28 days? Pain in the ***. Just buy 1-yr bond and that’s it. 
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Celotex 2 minutes ago  

But the interest rate on a 4-week t-bill is about the same as that on a 52-week t-bill. So I
would take the shorter duration instrument.

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HoodRatKing 41 minutes ago (Edited)  
Imagine if you will, a class of people so damn wealthy they could use cash for mulch on their
$40 million dollar golf course & use it as a tax deduction....

#FakeMoney is trash!
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Seasmoke 42 minutes ago  

As far as I’m concerned 28days is just as dangerous as 360 months, when dealing with
liars,criminals and degenerates $21Trillion in Debt. 
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Winston Churchill 31 minutes ago  

$44trn, but you're not counting that missing $22trn.

All those counterfeit USTs a few years ago,are you sure they were fake ?

Only if you believe Uncle Scam, a known compulsive liar.

Mmmmm.
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Muddy1 47 minutes ago  

Thank you for this information.
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5 1

Marman 51 minutes ago (Edited)  

With negative interest rates coming to the US, the good old mattress vault may be making a
comeback.

Get Ready For Negative Interest Rates When Next Recession Hits

https://www.forbes.com/sites/pedrodacosta/2019/02/21/get-ready-for-negative-
interest-rates-when-next-recession-hits/
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ACP 48 minutes ago  

The key phrase is "as long as Trump is in office."

6 years from now, the next demokkkrat president will bust this piggy bank wide open
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dead hobo 43 minutes ago  

Trump wants low rates ASAP. He's his own worst enemy. Globalist rates bring Globalists
into power. They will quickly undo everything he implements. They want all costs to
approach $0.00. Low rates are they key to Globalism. All else falls into place with them
after Trump leaves office.
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dead hobo 47 minutes ago  

50-50, although I think the Fed may be wising up. Normalized rates make a strong
economy. There's a possibility that might be sinking in over there.

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