Fixed Deposit Vrs Treasury Bill. Complete Differences

You might be thinking of investing a percentage of your fortune if you reading this post. Maybe you are probably wondering how to invest the money. Whether to buy a treasury bill or put your money in a fixed deposit account. 

In this article, I am going to take you through the differences between investing in a fixed deposit and buying a treasury bill to make your choice easier.   

What Is A Fixed Deposit? 

A Fixed Deposit is an investment account in which money is deposited for a set length of time with a fixed interest rate.

What Is A Treasury Bill?

These are government bonds or debt securities with a maturity of less than a year.

What Is The Difference Between Treasury Bill And Fixed Deposit?

Understanding the distinctions between fixed deposits and Treasury bills might assist you in deciding which to use to build your money. Here are some 5 factors we will use to distinguish the two from each other.

Profitability In Terms Of Interest

Fixed deposits and Treasury bills both have the potential to be profitable investments. The income earned on Treasury bills is unquestionably higher than the interest earned on bank fixed deposits.

Risk- Factor And Credibility

Treasury bills are perceived to be risk-free investments since the government cannot run away your money whiles Fixed deposits are only considered safe when it is being sold by the bank.

Tax Benefits

Treasury bills are tax exempted but the interest earned on Fixed deposits is taxable annually.

Conclusion

Leave a comment below if you also have some concrete knowledge about the differences between treasury bills and fixed deposits.

We hope this article has served its purpose of educating you about the difference between Treasury Bill And Fixed Deposit.

Keep checking out the website for more educative articles such as this because we have more in store for you. Also, don’t forget to recommend our site to friends and loved ones who might also love our articles.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Check These Out

Local Government Salary Structure In Ghana

Today, we shall be talking about the local Government salary structure in Ghana but before that, let's first look at the meaning of "Local...

The Cost Of Building A Single Room In Ghana

Do you have plans of building a single room in the meantime before moving into a larger house? Are you wondering how much money...

Dandelion Health Benefits, Full Details

If you are reading this article, then probably you have heard of the wonders Dandelion is doing medically and want to find out more....

Health Benefits Of Bitter Leaf, Full Details

If you are reading this article, you probably have heard of the wonders that the Bitter leaf plant does and wants to know more....
- Advertisement -Fixed Deposit Vrs Treasury Bill. Complete Differences 2
error: Respect yourself