What are T bills and their benefits?

T-bills, or Treasury bills, are short-term debt instruments issued by the government of a country to finance its short-term cash requirements. In India, T-bills are issued by the Reserve Bank of India (RBI) on behalf of the government. They are considered one of the safest investment options available in the market.

T bills benefits

The benefits of investing in Treasury bills are mentioned below:

• Guaranteed returns: T-bills are backed by the government, which means they are considered one of the safest investments available. The returns on T-bills are guaranteed, making them a reliable investment option.
• Low risk: T-bills are considered low-risk investments since they are backed by the government. This means that the chances of default are almost negligible.
• Short-term investment: T-bills have a maturity period of up to one year, making them a good option for investors who want to park their money for a short period.
• Liquidity: T-bills can be easily bought and sold in the secondary market, which makes them a highly liquid investment option.
• Tax benefits: The returns on T-bills are exempt from state and local taxes, which makes them a tax-efficient investment option.

How to buy T bills in Zerodha?

Here is the step-by-step guide on How to buy t bills in Zerodha. Follow mentioned steps to buy treasury bills Zerodha:

• Log in to your Zerodha account: Log in to your Zerodha account using your username and password.
• Go to the 'Invest' section: Click on the 'Invest' tab on the top menu bar, and then click on the 'T-bills' option from the dropdown list.
• Choose the T-bill you want to buy: Zerodha offers various T-bills with different maturity periods. Choose the T-bill that suits your investment horizon.
• Place your order: Enter the number of T-bills you want to buy and the price you will pay. Review your order details and click on the 'Place Order’ button.
• Make payment: Once your order is executed, you must pay for the T-bills. Zerodha offers multiple payment options, including net banking and UPI.
• Receive your T-bills: Once your payment is received, your T-bills will be credited to your demat account. You can hold them until maturity or sell them in the secondary market if you need liquidity.

Conclusion

T-bills are a safe and reliable investment option for investors who want to park their money for a short period. Zerodha offers a convenient platform for buying T-bills, and the process is simple and clear.