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.
Treasury bills are tax exempted but the interest earned on Fixed deposits is taxable annually.
Leave a comment below if you also have some concrete knowledge about the differences between treasury bills and fixed deposits.
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