Ghana Treasury Bills (over 31 days) (2024)

FAQs

What is the maximum duration of a Treasury bill? ›

Treasury bills, or T-bills, have a maximum maturity period of 364 days. So, they are categorised as money market instruments (money market deals with funds with a maturity of less than one year). At present, treasury bills are issued in three maturities — 91-day, 182-day and 364-day.

1 Month Treasury Rate is at 5.49%, compared to 5.49% the previous market day and 3.54% last year. This is higher than the long term average of 1.44%. The 1 Month Treasury Rate is the yield received for investing in a US government issued treasury bill that has a maturity of 1 month.

Yes, a minimum of 7 working days is required for any change of instruction before the maturity of a bill.

Treasury securities, comprising bills and bonds, are still the safest pair of investments in the country in spite of the government's inability to repay its debts, an Associate Professor of Economics, Prof. Festus Ebo Turkson, has said.

Purchase your Treasury Bills through GTBank by visiting any of our branches or by speaking to your Relationship Manager. The following T-bills are purchasable through the Bank: 91 day bill.

3 Month Treasury Bill Rate is at 5.25%, compared to 5.22% the previous market day and 5.04% last year. This is higher than the long term average of 4.19%. The 3 Month Treasury Bill Rate is the yield received for investing in a government issued treasury security that has a maturity of 3 months.

You can only buy T-bills in electronic form, either from a brokerage firm or directly from the government at TreasuryDirect.gov. (You can also buy Series I savings bonds through TreasuryDirect.gov.)

We sell Treasury Bills (Bills) for terms ranging from four weeks to 52 weeks. Bills are sold at a discount or at par (face value). When the bill matures, you are paid its face value. You can hold a bill until it matures or sell it before it matures.

Generally, Treasury Bills are considered lower-risk compared to fixed deposits due to government backing. However, FDs provide fixed returns, while T-bill returns depend on market rates.

Can Treasury bills lose value? ›

Like Treasury bonds and notes, T-bills have no default risk since they're backed by the U.S. government.

A: All Ghanaian citizens and institutions in Ghana and abroad. Q: What is the minimum amount needed to purchase a Treasury -Bill? A: A minimum amount of GHC 100 is required to purchase a T-Bill.

As a result, T-bills have interest rate risk meaning there is a risk that existing bondholders might lose out on higher rates in the future. Although T-bills have zero default risk, their returns are typically lower than corporate bonds and some certificates of deposit.

The biggest downside of investing in T-bills is that you're going to get a lower rate of return compared to other investments, such as certificates of deposit, money market funds, corporate bonds or stocks. If you're looking to make some serious gains in your portfolio, T-bills aren't going to cut it.

Taxes: Treasury bills are exempt from state and local taxes but still subject to federal income taxes. That makes them less attractive holdings for taxable accounts. Investors in higher tax brackets might want to consider short-term municipal securities instead.

Treasury bonds, notes, and bills have no default risk since the U.S. government guarantees them. Investors will receive the bond's face value if they hold it to maturity.

Differences between investing in CDs and T-bills

If you live in a state with income taxes, and rates are similar for CDs and T-bills, then it makes sense to go with a T-bill. The amount you save on taxes will likely result in a higher payout from a T-bill than a CD. Another benefit of T-bills is their liquidity.

Upon maturity of the T-bills, when will I receive the principal amount? On maturity, the principal amount will be credited to your respective account by the end of the day, typically after 6pm. For cash applications: The principal amount will be credited to your designated Direct Crediting Service bank account.

T-bills sell in increments of $100 up to a maximum of $10 million, and you can buy them directly from the government through its TreasuryDirect website, or through a brokerage, bank or self-directed retirement account, like a Roth IRA.