i-14.08- What is Treasury bills (T-Bills)?

 Great question!


📘 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).


🧠 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.


🔍 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!

📊 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

🛡️ 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

🇰🇭 In Khmer:

Treasury Bills (T-Bills) គឺជាប័ណ្ណបំណុលរយៈពេលខ្លីដែលអ្នកអាចទិញពីរដ្ឋាភិបាលអាមេរិក។
អ្នកទិញវាបានក្នុងតម្លៃបញ្ចុះ (ថោកជាងតម្លៃពេញ) ហើយនៅពេលផុតកំណត់ (1ខែ, 3ខែ, 6ខែ ឬ 1ឆ្នាំ)
អ្នកទទួលប្រាក់ពេញវិញ។ ប្រាក់ចំណេញគឺការប្រែប្រួលរវាងតម្លៃទិញនិងតម្លៃទទួលវិញ។


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

 

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