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What are the key terms I should know?

What is a Treasury Bill?

What is a Treasury Bill?
Treasury Bills are short-term debt securities issued by the US Government with a maturity of  < 1 year.

The US government will pay you a fixed interest rate + pay back your investment, once the T-Bill matures.

Treasury Bills are considered to be of one of the safest assets in the world.

Why invest in Treasury Bills?

Why invest in Treasury Bills?
You can earn up to 5.3% by investing in Treasury Bills.

This is an all-time high since 2007. Several savings accounts will give you far lower interest.

You don't pay any state or local taxes on interest earned.

When you buy a Treasury Bill and hold to maturity, your interest rate is locked in!

What are the special tax deductions?

What are the special tax deductions?
You don’t have to pay any state or local tax on interest earned.

Unlike your savings account and most other investments.

Can I sell a Treasury Bill anytime?

Can I sell a Treasury Bill anytime?
You can sell your Treasury Bills through the Finvest platform anytime.

Treasuries is a $25 Trillion market. It is one of the most active and liquid markets in the world.

What is interest and "yield to maturity"?

What is interest and "yield to maturity"?
The US government pays you a fixed interest in return for investing in a Treasury Bill.  

Yield to maturity is the interest you earn if you hold the Treasury Bill to maturity.

They are always quoted in an annual percentage.

What does par value and face value mean?

What does par value and face value mean?
The terms par value and face value mean the same thing.

It is the dollar amount the US government pays you at maturity.

Typically, Treasury Bills are issued in increments of $1,000 of face value.

What does maturity date mean?

What is the maturity date?
This is the end date for the Treasury Bill when the government will repay your investment + the interest.

So if you invest $10,000 a 1-year T-Bill with a 4.9% interest rate, the government will pay you back your interest and investment at the end of the 1 year.

How much can I make?

How much can I make?
Interest is always calculated annually. Here is how it works:

Example 1: Invest $20,000 in a 12-month Treasury Bill at 4.86% interest and earn $972 (that's 4.86% of $20,000 over 12 months)

Example 2: Invest $20,000 in a 6-month Treasury Bill at 5.29% interest and earn $529. That's half of 5.29% of $20,000, since its for 6 months and adjusted for the shorter term

Where does my money get stored?

Where does my money get stored?
Your investments are custodied and cleared through Pershing LLC, a subsidiary of BNY Mellon.

US Treasury Bills are one of the safest asset classes since they are backed by the full faith of the US Government.

Can I sell my Treasury Bill before maturity?

Can I sell a Treasury Bill before maturity?
Treasury Bills are highly liquid and one of the biggest markets in the world.

If you hold to maturity, your interest will be locked in, no matter what.

If you decide to sell before maturity, you can check the price of the Treasury Bill on the Finvest app before selling.

What are the different types of Treasury Securities?

Which are the different types of Treasury securities?
Treasury Bills: Maturity dates of <1 year.
Treasury Notes: Maturity dates between 2 and 10 years.
Treasury Bonds: Maturity dates between 10 and 30 years.

We will launch support for Treasury Notes and Bonds shortly.

Treasury Bills vs money-market funds?

I invest in money-market funds - why invest in Treasury Bills?
With Treasury Bills, your interest is locked in, no matter what.

Money-market funds don't guarantee you a locked interest rate. That's because they invest in shorter-term bonds and are subject to interest rate fluctuations.