What Are T-Bills? Treasury Bills, or T-Bills, are short-term investments where you lend money to the Government of Ghana, and they pay you back with a little extra (interest) after a set time. They are considered relatively safe and reliable, making them a good choice for people who want a low-risk way to grow their money.
How Can You Buy T-Bills? You can buy T-Bills in two ways:
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At the Primary Auction
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This is when the Government of Ghana first offers the T-Bills for sale. Think of it as buying something brand new.
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There are two ways to bid:
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Non-Competitive Bid: This is the easiest option. You simply agree to accept the interest rate set by the government. However, at the time you place your purchase order, you won’t know the exact interest rate you will receive. The rate will only be determined after the auction.
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Competitive Bid: Here, you choose the interest rate you want. If your rate is too low, you might not get the T-Bills. This option is usually for bigger investors who want more control.
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On the Secondary Market
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This is where people buy and sell T-Bills that were already purchased during the primary auction. It’s like buying a pre-owned item. The advantage here is that you know the exact interest rate at the time of purchase, giving you more certainty compared to the primary auction. The price might be higher or lower depending on demand, but it’s a great option if you missed the primary auction or need to sell your T-Bills before they mature.
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Some Benefits of Investing in T-Bills?
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Predictable: You know exactly how much you’ll earn when the T-Bill matures.
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Short-Term: Most T-Bills last 91 days (even though there are 182 days and 364 days), so you don’t have to commit your money for a long time.
Key Terms Simplified
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Interest Rate: The return your earn from your investment; usually quoted in percentages
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Quantity/ Maturity/Face value: The amount of money you receive when your investment matures
By investing in T-Bills through the Black Star App, you can easily grow your savings while keeping your money safe. Whether you join the primary auction or buy from the secondary market, T-Bills are a smart and simple choice.
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