<p>You may wish to invest in a fixed deposit (FD) plan if you’re seeking for a safe investment that will provide you with a steady income from your funds. Approximately Rs 60 trillion is reportedly invested annually, 15% of which goes toward gold and fixed-income securities.</p>
<p>Treasury bills (T-Bills) are an alternate investment choice that offers protection and safety if you are investing in FDs. Fixed deposits are a kind of financial product offered by banks that let you deposit money for a certain period of time and earn interest up until the time the investment expires. Treasury Bills, on the other hand, are money market instruments issued as promissory notes to be repaid in the future and are issued by the Government of India.<img decoding=”async” loading=”lazy” class=”alignnone wp-image-94599″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/07/theindiaprint.com-the-tone-of-day-5-of-the-ind-versus-wi-2nd-test-was-summed-perfectly-by-ravindra-jadejas-yawning-download-2023-07-25t163907.571.jpg” alt=”” width=”1218″ height=”912″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/07/theindiaprint.com-the-tone-of-day-5-of-the-ind-versus-wi-2nd-test-was-summed-perfectly-by-ravindra-jadejas-yawning-download-2023-07-25t163907.571.jpg 259w, https://www.theindiaprint.com/wp-content/uploads/2023/07/theindiaprint.com-the-tone-of-day-5-of-the-ind-versus-wi-2nd-test-was-summed-perfectly-by-ravindra-jadejas-yawning-download-2023-07-25t163907.571-150×112.jpg 150w” sizes=”(max-width: 1218px) 100vw, 1218px” /></p>
<p>The Reserve Bank of India (RBI) issues T-Bills, commonly known as zero-coupon instruments, every week. They have maturation periods of 91, 182, and 364 days. Compared to FD rates of 4.5 to 6%, T-Bills for 3 months and 12 months provide interest rates of 6.7%.</p>
<p>T-Bills are risk-free and safe since the government issues them and they are sold at a discount. When these bills reach maturity, your demat account will be automatically deducted, and the demat account will credit your bank account with the face amount.</p>
<p>T-Bill profits are regarded as short-term capital gains, and income tax is due based on the investor’s tax bracket. T-Bill investments demand a minimum investment of Rs 25,000 and are only available in multiples of Rs 25,000, but FDs often have minimal investment requirements and may be launched with only Rs 1,000. T-Bill interest rates are fixed and never fluctuate, however FD interest rates might vary based on the status of the market and the financial institution producing the deposit.</p>
<p>Treasury Bills are readily convertible into cash and may be exchanged for other financial instruments prior to maturity. If money is taken from FDs prior to their set time of maturity, a penalty must be paid.</p>
<p>Investors may purchase T-Bills, which are government debt issued as bonds by the RBI. T-Bill investments were previously solely open to banks and other financial institutions, but they are now also open to ordinary investors.</p>
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