What are the cons and pros of investing in treasury bills?

Question

i have around 260 dollars in the bank. would it be wise to use 200 of it to invest in treasury bills

Answer 1

the only pro: it's the only investment that's completely risk-free.  believe it or not, it's actually unconstitutional to say otherwise! (See Section 4 of the 14th Amendment!)

the con: you won't beat inflation, and over the long-term, the only investment that has preformed worse is cash.

a side note: t-bills don't come in $200 denominations.  they trade with a MUCH higher face value.

Answer 2

Pro: Ultra low risk, guaranteed fixed rate of return

Con: Low rate of return compared to many other investments (but with the way the stock market has been....... you might be better off with low return then negative return)

Answer 3

I believe the minimum T-bill investment is about $5000 discounted.

Pros: excellent liquidity, stable value of investment

cons:  High minimum investment, currently very low interest rate (this is not a con all of the time only now with the Fed giving money away)