Finance and Investment

How To Buy Treasury Bill With Mobile Money (MoMo)

Treasury bill is considered to be among the safest short-term investments. It is issued by central banks to raise funds from the public. Usually you will have to visit your bank to purchase, but now you can buy treasury through mobile money with no stress.

Ecobank and MTN have launched the mobile money based treasury bill investment product (TBILL4ALL) for your convenience.

What is Ecobank TBILL4ALL?

The Ecobank Treasury bill (TBILL4ALL) allows you to buy 91 and 182-day Treasury bills through your mobile money wallet. You can also manage your Treasury bills on your mobile phone without having to visit your bank. You can buy the treasury bill from Gh₵ 5.00 and above.

What are the types of Treasury bills in Ghana?

Treasury bills available on the Ghanaian money market includes;

  • The 91-day treasury bill
  • The 82 –day treasury bill
  • The 1 and 2 –year treasury notes
  • And the 3 and 5 –year bonds

Which bank in Ghana is good for treasury bills?

Ecobank Ghana remains the ideal bank for treasury bills in Ghana. Aside the introduction of the TBill4All product that allows you buy treasury bill through mobile money, subscription also starts with as low as Gh₵5.

How do I buy treasury bill through mobile money?

Follow these steps to buy Ecobank treasury bill through mobile money (MoMo);

  1. Dial *770# to register. Once registered, the system will always recognize your user name and grant you access to the product features including the Application, the Interest calculator, Rediscount as well as the Terms and Conditions of the service.
  2. The interest calculator allows 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, and 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 the requisite 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.

What are the benefits of investing in treasury bills?

Here are some of the reasons why you may want to buy T-bills;

  1. Treasury bill can be bought, discounted or sold easily
  2. Treasury bill is backed by government and therefore considered as a risk free investment
  3. There are no investment fees associated with treasury bills
  4. You can easily sell your T-bills as compared to stocks
  5. Interest on treasury bills don’t attract tax
  6. Treasury bills can be used as collateral for a loan
  7. When you invest in treasury bills, you know the exact interest rate you will earn at maturity

Frequently Asked Questions (FAQs) on Treasury bills

Are Treasury bills a safe investment?

Yes, treasury bills are a safer short term investment option. It is not risky because it is backed by government. It is difficult to conceive that a government will collapse, and unless that happens, your investment in treasury bill will remain safe.

How much interest can I earn on Treasury bill?

The amount of interest you can earn depends on the type of T-bill you buy. The 91-day, 182-day and the 365-day treasury bills have different interest rates. So you can look at the rates in a point in time, and choose the one that meets your financial needs.

Is treasury bill better than Treasury bill?

Fixed deposits usually have a higher interest rates than treasury bill, and depends on the amount of the deposit. Treasury bill rates are fixed irrespective of the type of T-bill or amount you want to invest. However, there are very clear differences between fixed deposits and treasury bills.

What are the disadvantages of Treasury bill?

The disadvantage of buying T-bill is that, treasury bill rates are usually lower than other investments like fixed deposits, mutual funds, stocks, corporate bonds etc.

Is Treasury bill a good investment?

Treasury is a good investment for the short term because it is among the safest forms of investment. If you are in for the long haul, don’t go in for treasury bills. Stocks would probably be better in that regard.

Can I lose my money investing in Treasury bill?

Treasury bills are known to be risk-free assets as they are issued by central banks. Therefore, your investment is safe, and you are guaranteed your principal and interest at maturity.

Are Treasury Bills a good investment in 2022?

Most treasury bill rates are below the inflation rates in 2022, making it a bad investment for the long term. However, treasury bill rates are also higher than the average of high yielding savings account at the moment.

Treasury bill vs bond, which is better?

When it comes to T-bill and bonds, the focus is on the period of investment. If the investment is for the short term, treasury is better; but if the investor wants to invest for the long term, treasury bonds is better. Usually, the longer the maturity period, the higher the return on investment.

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