Know THIS Before You Invest in Treasury Bills
They say treasury bill is less risky investment but there are things you need to consider before investing in treasury bills treasury bills are monies you lend to the government and in return you get profit which can be as high as 29% or 30% interest rate per year far better than savings right you get it but there are things financial institutions are hiding from you when you want to invest in treasury bills that is why I made the blog to let you know these things before you invest your money into T bills you need to understand what
treasury bills are so TR bills are short-term government securities issued by the bank of Ghana to raise funds for the government they have different maturity dates which include 91 days 180 or 364 days they are sold at discount meaning you buy them less than their face value and upon maturity you receive the full face value with the difference being the interest end the second thing to note is you have to know the current interest rates check the bank of Garner's website for the discount rates compare rates for 91 day 182 day and 34
day BS to choose the most suitable maturity period based on your financial goals you don't just invest in anything you have to know your financial goal whether you want a shortterm or a longterm you can can monitor Bank of Ghana's weekly auctions or publication on your website for the most up to-date rates the third point you need to note when investing in Treasure bill is to monitor the market conditions look at broader market trends such as inflation rates and compare the inflation rate to the treasury bill rate so if inflation
rate is higher than treasury bill rate then you are not going to make any money you need to consider the policy rate set by the bank of Ghana which affect treasure Bill yields the next thing you need to understand is the risk inflation if inflation is high the real return on your treasury bill might be negligible or negative currency rate is another thing you need to consider if you have financial obligation in foreign currency a depreciation of the Ghana City could erode your purchasing power the next thing to consider is to assess your
liquidity needs TR BS are logged in for duration of their term ensure you won't need sex funds before the maturity date unless you plan to sell them in the secondary Market which could result in a lower return so if you have money that you want to invest in a short term less than 3 months please do not put your money in Trey bill because you will not be able to get your money back until the 3 month is dual or the six month is deal else you're going to lose some part of the money the next thing you need to consider is to evaluate risk TR bills
are backed by the government making them a lowrisk investment however it's prudent to monitor the country's economy stability and credit worthiness to ensure confidence in repayment so you should consider the repayment performance of the government inur you bills before you invest in it and so far we've never had anything crazy about government not being able to pay treasury bills the next thing you need to know is to understand treasury bill process you can purchase treasury bills through licensed financial institutions
like the bank or brokerage FBS such as IC Securities or black star brokage ensure your intermediary is credible and offer a competitive rate some banks allow you to purchase off treasury bill through their mobile banking app adding convenience to investors you need to also consider compound interest option some financial institutions offer en roll over option where the principal and the interest are reinvested upon maturity this allows your investment to grow at a compound rate you also need to diversify your Investments avoid putting
all your money into one security like treasure Bill diversify across various asset classes such as equities m funds or even Commodities to balance your risk and maximize returns also you need to know your Redemption process you have to understand how you will redeem your investment when it matures most banks will credit your bank account directly but it's good to still clarify this in advance so train bills are secure and straightforward way to grow your investment however to maximize your returns it's essential to consider
factors like interest rates inflation liquidity needs and overall economic environment by conducting through research and aligning your Investments with financial goals you can make an inform decisions that enhances your financial stability if you found this blog helpful please don't forget to like this blog And subscribe if you are new here and also share to your friends for them to know what to consider when they want to invest in treasury bill let me know in the comment section your view about treasury bills and feel free to
ask any question Below in the comments I'll always be available to answer your questions see you in my next blog