FckMitch t1_j6lei4o wrote on January 31, 2023 at 3:39 AM

Reply to comment by altmud in How do you buy t-bills and ladder on Fidelity? by Bigchip01

On #1 - you can buy TBills from cash management account at fidelity

altmud t1_j6llm30 wrote on January 31, 2023 at 4:40 AM

The Fidelity Cash Management account is a type of brokerage account. What I was trying to say, in answer to OP's question, is that you cannot have the money deducted directly from your own personal bank account when you buy a T-Bill, you must have the money in your Fidelity brokerage account (whatever type of Fidelity brokerage account it might be).

Bigchip01 OP t1_j6ljann wrote on January 31, 2023 at 4:19 AM

Would this be more advantageous to have the money sitting in cash management to get interest versus the brokerage account?

altmud t1_j6lmufj wrote on January 31, 2023 at 4:51 AM

They're both brokerage accounts. For the "Cash Management" account, you would earn interest (currently 2.21%) on cash that is "swept" to various FDIC-insured banks, whereas for the other type of brokerage account you would earn dividends on cash in a Fidelity money market fund (probably SPAXX, currently yielding 3.95%).

You can buy T-Bills in the same manner with either type of brokerage account, so choose whichever one fits any other needs you might have.