Tuesday, January 03, 2017 10:33 AM / Arthur Steven Asset Mangt
Facts about investing in Treasury Bills
What are Treasury Bills
Treasury Bills are government securities offered at a short tenor, with maturity spectrums of 91 days, 182 days and 364 days.
Benefits of Investing in Treasury Bills:
The income/interest from investing in T-bills is tax free, so interest received is not subject to withholding tax, and you will receive an immediate Investment confirmation letter for the Treasury bills. Also note that the T-bill certificates can be used as collateral for securing loans.
Liquidity, Interest & Principal Repayment
Being a Pure discount instrument, a successful bid ensures the receipt of the interest on the instrument upfront, while the original investment is repaid on the maturity date of the instrument.