Treasury bills are government guaranteed debt instruments issued by the Apex Bank of a country to control money supply in the economy.T-bills are very popular with institutional investors because interest derived is exempted from tax.
Although the rate of return is typically the lowest in the market but it is also the safest form of investment because a country can never run dry of cash which in turn makes your investment fully secured.
Treasury bills mature in a year or less and the interest is paid upfront.For instance,if you purchase a T-bills of N200,000 with an interest of 10%,your bank debits your account with N180,000 leaving you with N20,000 which is your interest been paid upfront.
Upon maturity of your investment,your account is been credited with the face value of your initial investment which is N200,000.
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