Thanks Dave... great answer. Always good to get your fact of the day early in the morning, takes a lot of pressure off the rest of the day.

Hi 203spring,

That's a complex and somewhat controversial issue. Let me spell out a few basics. Feel free to follow up if you're left with further questions.

-So called "T-Bills" refers to US government debt with a maturity of less than a year.

-Treasury Bills have been especially attractive in recent weeks because of their absolute safety. That is, since they are protected by the "full faith and credit" of the US government, so the risk of default is effectively nil. Further, their short maturity period means that they do not fluctuate much with changes in interest rates, unlike longer term government debt does.

-US Government debt does have the advantage of being exempt from state (but not Federal) income tax. Mutual funds and other vehicles investing in this debt and other forms of public debt often share this advantage though...so it isn't unique even when it is significant.

-Because T-Bills have been in such high demand, they have been paying unusually LOW rates of interest. Therefore for an average individual investor, they are generally not a good fit at this time. If guaranteed safety is the primary concern, better to open an FDIC or CUNA-insured savings or checking account where you can obtain greater interest and more convenience than you would by investing in t-bills instead.