Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 232 views

    Treasury Bills: Frequently Asked Questions

    Uploaded by

    sackeynat
    Treasury bills are short-term investments offered by the Bank of Ghana on behalf of the Government. Purchasing treasury bills involves lending money to the Government. When the bills mature, the Government will repay the original amount plus interest. NTHC is a primary distributor of treasury bills and offers services like periodic statements and discounted rates for early encashment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Treasury Bills: Frequently Asked Questions

    Uploaded by

    sackeynat
    232 views3 pages
    Treasury bills are short-term investments offered by the Bank of Ghana on behalf of the Government. Purchasing treasury bills involves lending money to the Government. When the bills mature, the Government will repay the original amount plus interest. NTHC is a primary distributor of treasury bills and offers services like periodic statements and discounted rates for early encashment.

    Original Description:

    Ghana Treasury Bill notes -credit NTHC and Bank of Ghana

    Original Title

    Treasury Bills

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Treasury bills are short-term investments offered by the Bank of Ghana on behalf of the Government. Purchasing treasury bills involves lending money to the Government. When the bills mature, the Government will repay the original amount plus interest. NTHC is a primary distributor of treasury bills and offers services like periodic statements and discounted rates for early encashment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    232 views3 pages

    Treasury Bills: Frequently Asked Questions

    Uploaded by

    sackeynat
    Treasury bills are short-term investments offered by the Bank of Ghana on behalf of the Government. Purchasing treasury bills involves lending money to the Government. When the bills mature, the Government will repay the original amount plus interest. NTHC is a primary distributor of treasury bills and offers services like periodic statements and discounted rates for early encashment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3
    At a glance
    Powered by AI
    The key takeaways are that treasury bills are short-term investments offered by the government of Ghana through the Bank of Ghana. When purchasing a treasury bill, you are lending money to the government. There are different options available when the treasury bill matures such as taking the original investment plus interest, reinvesting the principal or reinvesting both the principal and interest.

    When a treasury bill matures, there are three options available - you can take your original investment plus interest earned, continue investing just the principal and taking the interest, or reinvest both the principal and interest.

    Some of the benefits of investing in treasury bills are that they are risk-free investments, the interest earned is higher than bank savings account rates, there are no transaction fees, and they can be used as collateral for loans.

    Treasury Bills

    A treasury bill is a short-term investment product (from 91 days to 365 days) offered by the Bank
    of Ghana on behalf of the Government. Treasury bills are backed by the credit of the
    Government.
    Purchasing a treasury bill is lending money to the Government.
    Upon maturity, the government will repay the amount it borrowed plus the determined interest
    rate given at the time it borrowed (or the time you bought the Treasury bill). The interest rate
    payable depends on how long you lent your money for.
    The good and interesting thing about lending to the Government through the purchase of treasury
    bills is that you may collect your interest upfront on the day you purchase the treasury bills. The
    money given you upfront is referred to as the discount value. The discount value is always
    slightly lower than the interest value that would have been paid on maturity date.
    There are three things that you may do when you lend the money and wait till maturity date:

    You can take all your original money together with the interest.

    You can continue with the investment (roll over the principal) and take your interest.

    You can roll over both the principal and interest.

    NTHC is a primary distributor of treasury bills. You may buy your treasury bills at NTHCs
    Front Office. The advantage with buying from NTHC is that when you need the money you have
    lent to Government before maturity date, NTHC will give you back your principal and interest
    earned to date.

    Frequently Asked Questions


    What is the charge?
    You pay absolutely nothing when you buy treasury bills trough NTHC. It is free of
    charge.
    Why buy from NTHC?

    We send you periodic statements that indicate the position of your investment, and
    how much it has grown.

    We offer free professional investment advice.

    Unlike most banks, we buy your treasury bills promptly.

    If you need the money before maturity, NTHC re-discounts them.

    What are the benefits?

    Treasury bills are risk free.

    They can easily be converted into cash.

    Interest earned is higher than bank savings account rates.

    No transactions cost. You do not pay anything.

    They can be used as collateral.

    How many can I buy?


    There is no limit to how much one can buy. It depends on how much you are willing and
    able to buy.
    What minimum amount do I/we need to start?
    Ten Ghana Cedis (GH 10.00) only and thereafter in multiples of one Ghana Cedis (GH
    1.00).
    Who can buy?
    Anyone above 18 years can buy treasury bills. However, you can buy treasury bills for a
    person less than 18 years (a minor) and hold it in trust for him or her. It can also be held
    in trust for family members, friends or organisations.

    Markets
    Treasury Bill Rates
    Monday 16th February, 2015 To Friday 20th February, 2015
    Period
    Discount Rates
    Interest Rates
    91 - Day

    24.2784%

    25.8473%

    182 - Day

    23.3215%

    26.3999%

    1 - Yr Note

    -%

    22.5000%

    2 - Yr Fixed Rate Note

    -%

    23.0000%

    You might also like