HOw to read T-Bill notes interest rates

[virturalone]

I have question on T-Bills. A CD deposit gives a rate of .75%, but a T-Bill gives a rate of .12 or .09. Does that mean the T-Bill is giving .12% or .09% or 12% and 9%?

[Singuy]

I have question on T-Bills. A CD deposit gives a rate of .75%, but a T-Bill gives a rate of .12 or .09. Does that mean the T-Bill is giving .12% or .09% or 12% and 9%?

They are increments of 100 dollars. So you earn $0.12 per 100 dollars per year, so 0.12%

[virturalone]

So for $10,000 x .012 = $120.00 / year or
$10,000 = 100 @ $100 = .12 x1`00 = $12.00/ year ?

[Singuy]

So for $10,000 x .012 = $120.00 / year or
$10,000 = 100 @ $100 = .12 x1`00 = $12.00/ year ?

12 dollars a year

Slightly better than a savings account.

[disneysteve]

I really don't understand why anyone buys those. Why not buy a CD instead that is paying 6 times the interest? Both are safe and secure investments.

Of course, I also don't understand why anyone keeps their money in a savings account at a bricks and mortar bank that is paying 0.01% interest when you could put it in Ally or CapOne and earn 0.6% - 60 times higher.

[virturalone]

Thanks!