T-Bills or FCM interest payments.

Friends,

Presented with the ff offer what would you choose:

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We will pay 75% interest based on the average t-bill rate less 15bps as long as the net liquidity is > $250,000. Or you can buy t-bills which 95% is good for margin. For each t-bill purchase there is a $25 fee.

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In general do people prefer to buy Tbills or just collect interest payments.

What is a good interest rate to receive on balances.

Thanks.

 

3m t-bills 2,87%

75% - 0.15 equals about 2%

if you have 500k at IB you'll get about 4%

 

IB seems to be the one of few brokers paying interest using Fed Funds as the benchmark - most brokers use 30 day T-bills.

In general, what do people prefer/recommend: purchasing T-bills or receiving interest payments from the broker?

And if peple prefer receiving interest payments - what is the preferred benchmark/interest amount?

Thanks.

 

Any one?

 

yes!

 

Thanks, Surdo. Like your happy spirit. Now, please respond to the questions.

Thanks.

 

I have a 3 month T Bill in my futures account.
It is exempt from State and local tax, mm funds are not.

Good trading!

e s

 

Brokers obviously make intherest it is called "float" by my broker. sometimes it is a give and take with brokers. My broker does not offer interest but the commissions are less than IB or TS and the margins are only $500. I dont really care about margins but the low margins are helpful because I dont need to keep as much money in my account that i don't get interest on. I would take low rates, customer servie and low margins over float any day.