Treasury Bills are short-term investment products with a tenure of 91 to 365 days backed by the Bank of Ghana on behalf of the Government. A Fixed Deposit is an investment product offered by duly licensed banks and other financial institutions with a specific tenure usually (30 to 365 days). The maturity could be longer than 365 days.
You can opt for either a fixed deposit or purchase treasury bills taking into consideration the kind of return on investments you want. Here are four reasons why you should invest in fixed deposits and treasury bills.
Best Interest Rates
Fixed Deposits and Treasury Bills pay some of the best interest rates compared to other investment vehicles. Most financial institutions pay interest relative to the amount of money and tenure of investment.
Assured Return Benefits
Fixed Deposits usually come with fixed returns that are not subject to market volatility. When you invest, the return is predetermined, and the client is aware of exactly how much interest the investment will accrue. Treasury bills also have fixed rates. For instance, if you buy one at 15% for a period of 12 months and then there is a change in rate from 15% to 12% subsequently, you still get to enjoy 15% return on your investment.
Ease and Accessibility
You can easily invest in fixed deposits and buy treasury bills at the nearest branch of your designated financial institution or in some cases initiate the process online in the comfort of your home. Minimal paperwork and immediate accessibility make them better investment vehicles to consider and use in growing your wealth or to accumulate money for future expenses.
Some banks also allow you to use your investments as collateral to take loans for business or to meet pressing personal needs. Izwe Savings and Loans, for instance, has the Cashback loan where customers with the i-Vest Account ( a fixed deposit product), are able to take up to 70% of their investments as loans for personal expenses or business finance. Their investment remains intact and the loan is disbursed in 24hours.
Find the Right Financial Institution
Don’t let your investment earn you only interests, use it as collateral for loans when the need arises. IZWE Savings and Loans allows you to use your investments as collateral for loans.
Find the right financial institution when looking for fixed deposits and treasury bills to invest your money in and enjoy the additional benefits available.