G fund earnings

This topic contains 3 replies, has 2 voices, and was last updated by  ch3r0k33 1 year, 8 months ago.

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  • #30294

    ch3r0k33
    Participant

    The G fund’s interest/dividend reinvest is not explained well. How is the interest rate defined, how is it paid? Is the return the same as the interest rate offered as the monthly TSP loan rate?

    Yes I know “The rate is calculated monthly, based on the average yield of all U.S. Treasury securities with 4 or more years to maturity.” How difficult is this to determine and predict?

    #30295

    ch3r0k33
    Participant

    Just more information, if the interest rate is set for the whole month, then on a large balance, each days growth/dividend/interest should be the same. The pattern I see however is not even:

    daily payments in percentage of the weekly total of payments for week of Dec 10th to Dec 4th ( back in time)

    21.27% Sunday night
    0% Saturday night
    7.10% Friday night
    14.19% Thursday night
    14.18% Wednesday night
    14.19% Tuesday night
    29.08% Monday night

    Why? I can understand weekend payments paid on Monday but this pattern confuses me.

    Any help?

    #30297

    Anne
    Participant

    If you look at the G fund prices, they currently are increasing $0.0010 per share per day. Monday is generally 3x to account for 2 weekend days plus current day. Depending on when the month ends, sometimes the share price will be increase on Friday when month ends on a weekend. Since you are only talking about a fraction of a penny, your account balance will round up at different points depending on the daily price and the number of shares you have.

    Dec 15, 2017 15.5244 0.0010 F
    Dec 14, 2017 15.5234 0.0010 T
    Dec 13, 2017 15.5224 0.0010 W
    Dec 12, 2017 15.5214 0.0010 T
    Dec 11, 2017 15.5204 0.0030 M
    Dec 08, 2017 15.5174 0.0010 F
    Dec 07, 2017 15.5164 0.0010 T
    Dec 06, 2017 15.5154 0.0010 W
    Dec 05, 2017 15.5144 0.0010 T
    Dec 04, 2017 15.5134 0.0031 M
    Dec 01, 2017 15.5103 0.0010 F

    #30301

    ch3r0k33
    Participant

    Anne,

    Thanks for your reply and yes that makes sense however…
    When I go to the account activity menu and select start and end dates to find the change in value on the days I specified I get a different result from what you suggest
    Change in value actually occurs on 6 days of the week rather than the expected 5
    If you have money in the G fund, try going to account activity and select begin and end dates one day apart.
    Maybe this is a question about the validity of the account activity function?

    –JV

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