Finance and Investment

Buy Ecobank Treasury Bill With GH¢5: Ecobank TBILL4ALL

Ecobank Treasury bill is a very popular short-term investment, and has been on high demand in Ghana. Treasury bills are issued by governments to raise funds from the public to pay off debts, invest in developmental projects and so on. Ecobank has introduced the TBILL4BILL MoMo based service.

When you buy Treasury bill, take it like you have given your money to government as a loan which you would be paid back plus interest, either for a 91-day T-bill or 182-day T-bill.

Some consider T-bills as an investment opportunity to hedge against short term inflation. Others see it as better than most savings accounts, at least for the period they hold it.

Treasury bills are among the most secured forms of investment, as it is backed by the government (unless government collapses). You can look at the different types of treasury bills on the Ghanaian money market.

How does Treasury Bills work?

Government issues T-bills through auctions, which are not open to the general public. They are only available to primary dealers. These are financial institutions which are permitted by the Bank of Ghana and licensed by the Securities and Exchange Commission (SEC) to buy government securities issued by the Bank of Ghana.

Traditionally, you will have to visit a registered and licensed financial institution to buy T-bills. Not only that, but also most financial institutions offer T-bills to the general public with minimum purchases of about GH¢100 or GH¢300. To my understanding, this does not help widen the net of ‘investment inclusion’.

But Ecobank Ghana has the solution. A solution not only in banking services but investments too. It has introduced the Ecobank TBILL4ALL investment product that gives every Ghanaian the opportunity to invest in T-bills from their phones.

What is Ecobank Treasury Bill (TBILL4ALL) ?

The Ecobank TBILL4ALL is a mobile-money based investment service that allows you to purchase and manage Government of Ghana Treasury Bills from your mobile phone anywhere without visiting the bank.

With as little as GH¢5, you can purchase Government of Ghana 91 and 182-day Treasury bills from your MTN mobile wallet.

The TBILL4ALL platform doesn’t support 1 and 2-year treasury note, however, you can buy that at the nearest Ecobank Ghana branch. This is cool right?

How do I invest in Ecobank Treasury Bill (TBILL4ALL)?

The process is as easy as a blink. The steps are as follows;

  1. If you are a first time user dial *770# to register. Once registered, the system will always recognize your user name and grant you access to the product features. This includes the Application, Interest calculator, Rediscount as well as the Terms and Conditions of the service.
  2. The interest calculator allows the you to have a fair idea of what your investment will earn at maturity. Rates used are those of the previous week and are only indicative and subject to change.
  3. The rediscount functionality of the service allows you to withdraw your money before maturity. Partial rediscount is currently unavailable on the service.
  4. The purchase of Treasury Bills on the platform is a one-cycle transaction with a minimum investment of GH¢5.
  5. Your mobile money wallet would be credited with your investment plus interest on maturity. You can always choose to reinvest the matured proceeds on the platform.
  6. The product is supported by the Ecobank Call Centre where trained and certified staff are available to provide you support. To contact them call free on short code 3225; Airtel, MTN or Vodafone lines only or on 0302 213 999.
  7. Terms and conditions apply.

Why Should I buy Treasury Bill?

There are many good reasons why you should choose T-bill for your short term investment plans. If you want to help government in its economic recovery, you can buy T-bill as a loan to government. This is just my solemn thought, thou. Here are some of the reasons why you may want to buy T-bills;

  • You can easily buy, sell or discount your T-bill holdings.
  • T-bills are safe and risk free as it is backed by government.
  • No fees. You are usually not charged investment fees when you buy T-bills.
  • You can easily convert T-bills to cash compared to investing stocks.
  • No taxes. The returns on your T-bills are not taxed in Ghana
  • You can use your Treasury bills holdings as a collateral for a bank loan.
  • With T-bill, you earn a fixed rate of interest.
  • You T-bill statements can be used to boost visa application process.

To sum up, T-bills are safe and ideal investment for the short term, at least when you have no better short term investment offers.

You can click here for more information on the Ecobank TBILL4ALL. Note that, TBILL4ALL is mobile money based investment.

I entreat you to get you SIM card registered with your Ghana card before investing. The registration ends on 31st March, so get it registered and come back to enjoy the convenience Ecobank offers you.

If you found this article helpful, please press the like button below. You can also leave a comment on this post, otherwise seek a more professional financial advice.

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