Treasury Bills vs Fixed Deposits: What's the Difference?

Treasury Bills vs Fixed Deposits: Understanding the Differences When looking for safe investment options in Ghana, two popular choices are Treasury Bills (T-Bills) and Fixed Deposits (also called Time Deposits). While both offer guaranteed returns, they work quite differently. What are Treasury Bills? Treasury Bills are short-term government securities issued by the Bank of Ghana. They are essentially loans you make to the government for a fixed period (91, 182, or 364 days). Key Features of T-Bills: Issuer: Government of Ghana (backed by the state) Tenure: 91, 182, or 364 days Minimum Investment: GHS 100 Risk Level: Very low (government-backed) Taxation: Withholding tax applies on interest earned What are Fixed Deposits? Fixed Deposits are savings accounts with banks where you deposit money for a fixed period at a predetermined interest rate. Key Features of Fixed Deposits: Issuer: Commercial banks Tenure: 30 days to 5 years Minimum Investment: Varies by bank…