Treasury bills (T-bills) are a low-risk investment option offered by the U.S. Treasury Department. They are short-term debt obligations that are sold at auction, and they offer investors the opportunity to make a return on their investments. T-bills are sold in denominations of $1,000 and can be held for up to one year.
T-bills offer a fixed rate of return, which is determined at the time of purchase. Investors can expect to earn a 5% yield on their investments. This yield is higher than what investors can expect to earn on savings accounts or money market funds. T-bills also offer a higher return than other types of fixed income investments such as bonds or certificates of deposit.
A key advantage of investing in T-bills is that the risk of losing money is very low. This is because the U.S. Treasury Department guarantees the full face value of the investment regardless of market conditions. This makes T-bills an attractive option for investors who are looking for a low-risk, fixed income investment.