You can use treasury bills for a risk-free and secure investment for your money. Treasury bills are easy to access and use. They also provide short term investment, which means that you can earn a little extra money over a couple of weeks.

How Treasury Bills Work

T-bills are provided by the Federal Reserve and are available for a minimum of $100 in value. The bills are offered at a discount depending on the maturity time you choose, meaning that you purchase bills at a lower price, and the return is the full value.

For example, if you want to purchase government bills worth $1000, you can buy it at $960. This is at 4% discount rate. At the end of the maturity time, say, about a month, your return will be the full $1000, which means that the discount rate becomes your interest, gaining you $40 in return for your treasury bill.

You can do this with as much money as you wish, and it is advisable that you purchase different treasury bills with different maturity dates to keep you in good cash supply. Also, t-bills can be kept from between a month to several years.

Tips To Remember About T- Bills

Treasury bills are ideal for all individuals to invest in, and here are a few ideas you can apply to make the most out of your bills.

1. Buy short term and long term t-bills for better security, which will give you money for a longer time.
2. Small amounts over longer periods of time earn more interest, for example, a $100 government bills over 1 year can earn more as compared to over 3 months because of the discount rate.
3. Treasury bills can be ideal if you have large amounts of money to avoid bank account limitations for deposits and withdrawals.
4. You can start at $100 as a start to see how government bills operate, and then work your way up in terms of investment money.

These tips should help you when making the decision to invest in government bills. Contact your investment banker to help you buy and sell your t-bills.