Review:
Treasury Bill
overall review score: 4.5
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score is between 0 and 5
A treasury bill (T-bill) is a short-term government debt security with a maturity of less than one year, issued by the United States Department of the Treasury.
Key Features
- Short-term investment option
- Low risk
- Issued at a discount to face value
- Interest income derived from the difference between purchase price and redemption value
Pros
- Low risk investment
- Government backing ensures reliability
- Liquidity as T-bills can be easily bought and sold on the secondary market
Cons
- Lower potential returns compared to other investments
- Interest income may be subject to taxation