Treasury bills commonly known as T-bills are short term investments with a maturity of 1 year or less. T-bills can be purchased for 91 days, 182 days or 364 days. You have options of rolling over upon maturity. You can either rollover only your initial investment amount or your initial investment plus your interest. For example – if your initial investment is GHs 1,000 and your maturity value is GHs 1,150, only the GHs 1,000 will be rolled over, and your interest of GHs 150 given to you, in the case of rolling over only your initial investment. Rolling over your initial investment plus your interest will mean, the whole of your maturity value of GHs 1,150 will be rolled over.

The interest rate on T-bills currently ranges from 13.57% and 14.52% depending on the maturity period. The longer the maturity, the higher the interest. T-bills can be disinvested at any time before the maturity date, but, interest will be paid for only the period your capital was held for.

When you buy T-bills, you have lent money to the government. T-bills are very safe forms of investments that are not taxable. So, if you are risk averse, i.e. someone who doesn’t like to take risks, T-bills are for you.  T-bills are also acceptable as collateral for short term loans.

Instead of leaving your monies in piggy banks (susu boxes) which do not generate interest or savings accounts with little interest, you can consider purchasing some T-bills. T-bills can be purchased from any commercial bank in the country at any amount!

Source: T-bills rates – bog.gov.gh/