i-12.00- What is a Treasury Bill (T-Bill)?

 Great question!


๐Ÿ“˜ What is a Treasury Bill (T-Bill)?

A Treasury Bill, or T-Bill, is a short-term loan to the U.S. government.
You buy it at a discount, and the government pays you full face value when it matures (usually in 4, 13, 26, or 52 weeks).


๐Ÿง  In simple words:

You lend money to the U.S. government for a short time.
They pay you back more than you gave, but without interest payments—just a price difference.


๐Ÿ” How it works:

  • You buy a T-Bill for $970
  • After 6 months, the government gives you $1,000
  • You earn $30 – that’s your profit!

๐Ÿ“Š Key Features:

Feature

Description

Issuer

U.S. government

Term

Short (1 year or less)

Risk

Very low (backed by U.S. government)

Return

Small, but very safe

Tax

No state or local tax on earnings

Payment

No interest—you earn from the price difference


✅ Why people invest in T-Bills:

  • Safe way to park cash
  • Great for capital preservation
  • Good for emergency savings or short-term plans
  • Often used in retirement portfolios for stability

๐Ÿ›ก️ Example of when to use:

  • You want to save money safely for the next 6–12 months
  • You don’t want to risk the stock market
  • You want something better than a savings account, but still very low-risk

๐Ÿ‡ฐ๐Ÿ‡ญ In Khmer:

Treasury Bills (T-Bills) แž‚ឺแž‡ាแž”័แžŽ្แžŽแž”ំแžŽុแž›แžšแž™ៈแž–េแž›แž្แž›ីแžŠែแž›แžข្แž“แž€แžขាแž…แž‘ិแž‰แž–ីแžšแžŠ្แž‹ាแž—ិแž”ាแž›แžขាแž˜េแžšិแž€។
แžข្แž“แž€แž‘ិแž‰แžœាแž”ាแž“แž€្แž“ុแž„แžแž˜្แž›ៃแž”แž‰្แž…ុះ (แžោแž€แž‡ាแž„แžแž˜្แž›ៃแž–េแž‰) แž ើแž™แž“ៅแž–េแž›แž•ុแžแž€ំแžŽแž់ (1แžែ, 3แžែ, 6แžែ แžฌ 1แž†្แž“ាំ)
แžข្แž“แž€แž‘แž‘ួแž›แž”្แžšាแž€់แž–េแž‰แžœិแž‰។ แž”្แžšាแž€់แž…ំแžŽេแž‰แž‚ឺแž€ាแžšแž”្แžšែแž”្แžšួแž›แžšแžœាแž„แžแž˜្แž›ៃแž‘ិแž‰แž“ិแž„แžแž˜្แž›ៃแž‘แž‘ួแž›แžœិแž‰។


Would you like to learn how to buy T-Bills through Schwab or other platforms like TreasuryDirect?

 

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