Treasury Bills

Treasury Bills, or T-bills, are short-term government securities issued by the U.S. Department of the Treasury to help finance government operations. They are sold at a discount to their face value and do not pay interest like traditional bonds. Instead, when they mature—usually in a few weeks to a year—the government pays the holder the full face value. The difference between the purchase price and the maturity value is the investor’s return. T-bills are considered very safe investments since they are backed by the government's creditworthiness. They are popular for those seeking low-risk, short-term investment options.