If market rates went to 3.5% during the 13 weeks you owned this 3% 13-week Treasury and you needed to sell, you would probably lose 15% of your principal.
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I will trust your math. However, I have never had to sell, and donāt anticipate the need to sell this 13 week bond.
ETA: If rates fell to 2.5%, I might be tempted to sell the bonds, though. 
The interest rate on this NPCD has increased to 2.15% APY.
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Hereās the way I calculate the loss if you sell with one month left in the term.
Today you would pay $100*(1-.03/4)=$99.25 for a $100 three month tbill yielding 3%. Say you had one month left in the term and you want to sell. The one month T bill rate is 2.43% today (see the chart in the link below). That means your Tbill is worth $99.25 *(1-.0243/12) = $99.05. So you would lose 20 cents out of every hundred dollars.
This assumes a perfect market with no bid-ask spread but the treasury market is extremely efficient so I donāt think it will be far off.
Edit. I checked the value of t-bills in my Schwab account and it corroborates my calculation. In all cases they were within a few percent of the purchase price. Interest rates increased a little in the last few days.
If, for example, interest rates increased to 15% overnight, the losses would be greater. But in that case I have a lot more serious problems than the value of a t-bill.
Even at 15% annual interest, the purchase price of a one month $100 t-bill is
Price = 100*(1-.15/12) = $98.75
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Reminder that tomorrow, second of September at 8:30 am ET, the employment report for August will be released.by the US Department of Labor.
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4.08% APY 3 year promo CD here - many people will not qualify
Scroll down for qualification detail.
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In case anyone is interested, Lafayette Fed CU is offering the following CDs -
7-month (2.83% APY)
1-year (3.14% APY)
2-year (3.29% APY)
3-year (3.34% APY)
4-year (3.49% APY)
5-year (3.64% APY)
$500 minimum deposit, easy membership requirement
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Thanks shinobi,ā¦ I actually have a Freedom CU.
Called to get that old account number to open an ACH set up. No way would they give me the number over the phone.
But, Freedom agent was very accommodating and is withdrawing funds from my TIAA Bank today. So Iām happy about getting this 36 month CD @ 4.08% APY. Hopefully 9/6/22 funds will be there.
Without this site I never would have heard about this offer. Thanks! 
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Happy it worked out for you, pattyb53. I know you love those 4+% APY CDs. 
I really donāt know where CD interest rates are headed in future. We all will know more following release of the inflation report on thirteenth of September, just eleven days hence and a week in advance of the next FOMC meeting. So they will have lots of time to think things over prior to that meeting.
Understood. One of the reasons I posted the deal is that, even though Freedom Credit Union membership is today quite restrictive, this was not always the case. I figured some participants here might have joined in the past when membership requirements were less strict. If those old memberships were kept alive, they would serve now to allow grabbing the 4+% APY CD deal. After all, āonce a member always a memberā, provided you perform your annual member maintenance and avoid thereby being kicked out.
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Great River is doing a reprise of their recent 4% APY CD deal, this time for 37 months. Itās a small CU. Their earlier 4% deal lasted about two days.
Disclaimer:
- Iām not a Great River member
- Iām not doing this deal
- All I know is what I read on Kenās website
The $100 bonus for new members apparently remains active:
I do not know the details of how you qualify for the entirety of that reward. Go into this, if you choose to do so, at your own risk.
This deal has not as yet been released to the public. Only existing Great River members have received a heads up. The deal is anticipated to go live on Wednesday. If you are gonna send them money, wires are best. Word on the street is they put a hold on ACH transfers. At least ask! Be warned, this is a Minnesota outfit. They do some stuff differently in Minnesota.
Anyone may join this small CU.
Good luck if you try this one. I hope you donāt need it.
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Correct me if this is incorrect, but arent there tax advantages to these bonds with pathetically low coupon rates? Currently a 1 year treasury with a 9-30-23 maturity yields 3.37%, but only has a .25% coupon rate. Doesnt that mean (assuming held to maturity) that only ~$3 of that yield will interest income, with the remainder (~$35) being long term capital gains? Or are there other technicalities involved?
That seems too good to be true so I did some research. Here is one answer I found. The gain is treated as treasury bond interest income taxable by the feds but not by the state
When any non-exempt bond (not just Treasuries) is bought at more than a āde minimisā discount, the āguaranteedā gain is treated for tax purposes as additional interest, amortized over the term of the bond (if more than one year). See the section Discount on Debt Instruments in chapter 1 of publication 550, downloadable in PDF or on the web (IDK why 2017 isnāt up yet, but this provision hasnāt changed recently). Although the actual computations are fairly complicated (see also pub 1212), if you hold the bond through a financial institution like a broker ā or TreasuryDirect, which is actually a fiscal agent, IIRC the Pittsburgh FRB ā they will do the computation and provide it to you and the IRS on Form 1099-OID during filing season, and you include it on Schedule B just like ārealā interest on 1099-INT. Marketable Treasuries in particular are book-entry only (since about 2000 IIRC) so you almost have to hold through some institution.
The āde minimisā threshold is based on the bondās term, and for a 30-year bond is 7.5%; it looks to me like only a few recent 30-year auctions exceeded that (and both were reopenings, which you could simply avoid). Under the threshold you just report it as a capital gain at redemption or sale whichever comes first, in the usual fashion. I donāt recall if TreasuryDirect issues you a 1099-B but if not this case is simple enough to do by hand (no transaction costs, no account costs, no margin, no
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Well, it was a nice thoughtā¦ 
I thought Iād give this one a try. Late last night I filled out the online application. Just received the phone call from Great River a few minutes ago.
Not interested in me!! To many inquiries on my records they say . So worth a try on my part.
But Iām thinking now, just another annoying inquiry on my list. 
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Surprised theyāre doing it with a deposit acct.
reminds me of Barclays (the only bank I canāt get a CC with due to too many inquiries) .
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NFCU add-on certificate 3% for 20 months, $1K minimum, $250K max, offer ends September 11th.
Iām thinking of doing this but wondering if rates are going up again after next Fed meeting in two weeks.
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Fed rates will go up. This NFCU special is actually a lower rate than the special before it - so who knows what they will offer next.
Open now with $1k, then if the next special is better open the better one, or see if theyāll adjust this rate to match the new one (which they have done in the past).
Yes, do it. And, yes, rates are going up virtually for certain.
I also am likely to purchase this insurance for $1000. And insurance is all this is at this point.
Just because the Fed raises short rates going forward, as anticipated, is no guarantee banks and credit unions will raise the longer CD rates we all wish we could lock in. So having a bit of cheap insurance is not such a horrible idea. As with most insurance, you buy it hoping youāll never need it. And if longer CD rates grow a lot, you will not. But that is not a certainty.
Previous special was 33 months (13 months longer). Longer term certificates always have higher rates than shorter term ones; the rate on specials differs with the length of the certificate.
It is predictable.
Thanks for the info on adjusting the rate. That could make it worthwhile.
Welcome to the club. Youāve made the big time. Now you know how I felt when Hanscom told me that I was an undesirable and to go pound sand. They wanted no part of my business.
Other participants here can learn from both of us, pattyb53. This is Chexsystemsā doing. When you get caught up in their net it can be costly. And for those of us rate chasers who are very active, getting caught is pretty easy. I detest Chexsystems.