Treasury Bills

Treasury bills are issued by the government in large denominations (nearly a million dollars each). They are available to all investors through banks and investment dealers. You can therefore invest in them, in various denominations, according to your pocketbook.

These investments are sold at a lower price than their price at maturity. The difference between the purchase price and the selling price represents your return. Although the return on this category of investment is a capital gain, it is considered to be interest income for tax purposes and is therefore taxable at 100%.

Risk Level

Treasury bills are one of the safest investments. The closer the maturity, the lower the risk. If you need your money before your investment matures, you can sell your Treasury bills on the maintained market through a broker.

For Cautious Investors

This investment is ideal for persons with low risk tolerance, who do not want to risk losing any of their capital. It therefore constitutes an excellent refuge during times of stock and fixed-income securities market instability. However, the return on Treasury bills, which are short-term investments, is lower than on longer-term investments.