Treasury bills (T-bills) are short-term government financial instruments that typically mature within 91 to 365 days.

The government uses T-bills as a way to borrow money from the public to finance its activities.

When you purchase a treasury bill, you are essentially lending money to the government, which repays you on the maturity date.

T-bills are considered one of the safest government investment options, a status reinforced by their exclusion from the domestic debt restructuring exercise.

Here are 10 things to know about treasury bills

1. Treasury bills are issued and sold weekly.

2. Treasury bills carry low to zero risk. Unless the government collapses, an extremely rare scenario, your investment is considered safe.

3. There are no transaction costs associated with purchasing treasury bills.

4. T-bills can be used as collateral for loans.

5. You can invest any amount, even exceeding the government's weekly target.

6. Treasury bill auctions are held on Fridays, with issuance taking place on Mondays.

7. Interest rates on treasury bills are relatively stable and tend to fluctuate less than those of other investments.

8. Treasury bills typically offer higher interest rates than regular bank savings accounts.

9. T-bills can be easily converted into cash when needed.

10. Both the principal and interest from T-bills can be rolled over, you may choose to reinvest the principal and withdraw the interest.

SSD/MA

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