Treasury Bills VS Fixed Deposits (FD’s)

T-bills are government-backed, low-risk, short-term investments with flexible terms and competitive rates. FDs are bank products offering fixed rates but with higher risk and tax obligations.

Treasury Bills and Fixed Deposits (FD’s)

T-bills are government-backed, low-risk, short-term investments with flexible terms and competitive rates. FDs are bank products offering fixed rates but with higher risk and tax obligations.

Invest Digitally

T-bills Calculator

Go Back

What are Treasury Bills?

Overview

Understanding Treasury Bills

Treasury bills are short term debt instruments issued by the government in order to borrow money from investors.

Treasury Bills and Their Maturity Periods

Treasury bills come in three maturity periods, which is 3 months, 6 months, and 12 months.

Where to Purchase Treasury Bills

Investors can purchase Treasury bills at the weekly treasury bill auctions through a licensed primary dealer for the Central Bank such as CAL, or through the secondary market which is made available through the CAL Online platform, where you can directly invest in Treasury bills or Bonds..

How to choose a treasury bill?

Choosing the Right Tenure and Yield

When investing in treasury bills it is important to choose a tenure, which is the total period of the bill before maturity, and yield, which is the interest rate the bill will pay, that suits your investment need.

Difference Between Treasury Bills and Fixed Deposits

Treasury Bills	Category	Fixed Deposits
Fixed	Interest Rate Same	Fixed
Paid at the end of the period	Interest Income Same	Paid at the end of the period
40,000 (via the CAL portal)	Minimum Investment Different	Varies
Till Maturity	Lock‑in Period Same	Till Maturity
Government Risk	Risk Exposure Different	Issuing Bank risk
No withholding tax, interest income liable to income tax	Tax Different	5% withholding tax, interest income liable to income tax

Why Choose Treasury Bills?

Low risk

Treasury Bills are considered to be the safest financial instruments, given their exposure only to the government.

Flexibility

Due their short maturity period, Treasury Bills give investors flexibility with their funds.

Competitive interest rates

Interest rates on Treasury bills fluctuate with changing economic conditions, often giving investors competitive returns considering the lack of risk involved.

Want to learn more about Treasury Bills?

Invest Now

Learn More

Capital Alliance PLC is a CBSL & Government Authorized Primary Dealer of Government Treasuries