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:

NTHC is a primary distributor of treasury bills. You may buy your treasury bills at NTHC’s 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.