What Are Treasury Bills (T-Bills) – And Why You Should Consider Investing in Them

Looking for a safe, short-term investment option backed by the government? One that beats your savings account returns without locking your money for years?

Say hello to Treasury Bills (T-Bills) — one of the most underrated investment avenues for conservative and smart investors.

Let’s break down what T-Bills are, how they work, and why they deserve a place in your portfolio.

💡 What Are Treasury Bills (T-Bills)?

T-Bills are short-term debt instruments issued by the Government of India to borrow money for up to 1 year. They do not pay periodic interest but are issued at a discount and redeemed at face value.

For example:
You might buy a T-Bill for ₹98, and after 91 days, get back ₹100. That ₹2 is your return — known as a discount yield.

📆 Available Tenures

T-Bills are currently issued in three tenures:

91 days
182 days
364 days

They are auctioned weekly by the Reserve Bank of India (RBI), and now even retail investors can participate directly through RBI Retail Direct.

✅ Key Features of T-Bills

Short-Term Investment:
Great for parking surplus funds for a few months.
No Credit Risk:
Backed by the Government of India — as safe as it gets.
Highly Liquid:
You can sell T-Bills on the NDS-OM (Negotiated Dealing System-Order Matching) platform anytime before maturity.
Minimum Investment:
Just ₹10,000 to get started.
No Interest, No Hassle:
Returns come in the form of a price difference – no TDS, no reinvestment worries.

💰 How Do T-Bills Work?

Let’s say you invest ₹98,000 in a 91-day T-Bill. At maturity, you receive ₹100,000.

Return = ₹2,000 in 91 days → Annualized yield ≈ 8.1% (example rate).

You don’t receive any interest in between – you earn by buying at a discount and redeeming at full value.

🔁 How to Invest in T-Bills?

You can now invest directly in T-Bills via the RBI Retail Direct portal:

🔗 https://rbidirect.org.in

Steps:

Register online with PAN, Aadhaar, and bank details.
Choose T-Bills from the auction calendar or secondary market.
Place your bid and make the payment.
T-Bills will be credited to your RBI Gilt Account and money redeemed automatically at maturity.

🎯 Who Should Invest in T-Bills?

Individuals with idle cash for a few months
Conservative investors avoiding market volatility
Businesses and corporates managing short-term liquidity
Fixed deposit users looking for better post-tax returns

📊 T-Bills vs Other Short-Term Options

Feature	Savings Account	Fixed Deposit (3M)	Liquid Mutual Fund	T-Bills
Safety	Very High	High	Moderate	Very High
Return (annualized)	2.5–4%	4.5–6%	6–7%	6–7.5% (varies)
Tenure Flexibility	High	Low	High	Fixed
Tax	As per slab	As per slab	Indexation (if >3Y)	As per slab

🧠 Final Thoughts

Treasury Bills are an excellent option for short-term investors looking for:

Higher returns than a savings account
Zero risk of default
Easy access and liquidity
Flexibility in parking short-term funds

Whether you’re managing surplus cash, saving for an upcoming expense, or just want a safe place for your emergency fund — T-Bills deserve your attention.

Ready to invest?
👉 Open a free account at https://rbidirect.org.in and start participating in weekly T-Bill auctions today.