Those with money are definitely getting richer right now with these high interest rates. However, if you have even $100 you can access the same methods the rich are using with the understanding your returns will be proportionally equal which won’t be much with just $100.

You don’t need to be a US Citizen as log as you have a SSN and a US postal address. You can do this by buying US Treasuries.

• The shortest US Treasury is the 4-week Treasury Bill
• The minimum size bond is $100 if you go through the US government website https://www.treasurydirect.gov/ ($1000 minimum if you go through Schwab or Fidelity)

4-week T-bill auctions occur every week. The rate of return is determined by the auction. The good part is that the giant institutional investors are battling the government every auction to the the highest rate. Whatever that highest rate is, everyone gets that rate. Warren Buffet’s Berkshire Hathaway company is the largest holder of T-bills. His company is beating up the US Gov every week to get the highest rate, and the fruits of their labor is yours too if you buy a T-bill in the same auction.

This week’s 4-week T-Bill auction closed at a yield of 4.025% (similar to annual interest rate). So for loaning your $100 to the US government for 4 weeks in addition to getting your original money handed back to you, you’ll earn $0.46 (46 cents). If your T-Bill purchase is $1000, your return for the 4 week loan is $4.61. A $10,000 T-bill purchase will give you $40.61 for the 4 weeks.

This is considered the safest investment on the planet as the US Government has never defaulted on a loan through Treasuries. If you have a High Yield Savings account paying 3% right now (which is the most common), your bank is taking your money and making an extra 1% off your money when they buy T-bills.

US Treasuries earnings are immune from State and Local taxation. In places like California this can be a substantial savings in taxation on interest in a High Yield Saving account or other dividend taxable investment.

Using US Treasuries is one of the ways the rich get rich and stay rich.

I’ve said it before and I’ll say it again, Canada currently holds about $400 billion in US Treasury bonds, we seriously need to sell off that liability.