TREASURY BILLS AND BONDS

Treasury bills are risk-free short term financial instruments for investment regularly issued to the public by Government through Bank of Uganda.

The Investment Period for Treasury Bills is short term tenors of: 3 months (91days), 6 months (182 days) and 1 year (364 days).

Treasury bonds on the other hand are long term financial instruments also issued by the Government through Bank of Uganda to the investing public. The Investment Period for Treasury Bonds is long term tenors of: 2 years, 3 years, 5 years, 10 years and 15 years

Any member of the public e.g individuals, companies, SACCOs, Investment Clubs, pension funds etc…) with a Housing Finance Bank account is eligible to invest in Treasury bills through Housing Finance Bank.

In order to invest in Treasury bills/bonds, you need to open up a CSD (Central Securities Depository) account through Housing Finance Bank.

Housing Finance Bank provides you with an opportunity to buy at your convenience by going to any Housing Finance Bank branch near you. You can invest as many times as possible by only filling the Treasury Bills/Bonds Purchase Form at any Housing Finance Bank branch.

The minimum amount needed to buy Treasury Bills/Bonds is UGX. 100,000 (One hundred thousand shillings only) and are issued in multiples of UGX 100,000.

You can go to any Housing Finance Bank branch near you and inform them.

1. Safety for your Savings:
   These are considered to have little or practically no risk attached to them (risk free investment). You will definitely get your principle and interest payments. You’re guaranteed a certain rate of return on your investment.

2. Returns are predictable over time:
   Unlike other turbulent investments, Tbills/bonds are known to remain relatively stable with predictable and certainty in payment of your returns.

3. Good for long term savings like education, retirement:
   Because T-bonds are typically risk free investments, you might find them useful if you’re looking toward affording the best and complete education for your children or even a good life during retirement. In addition, they can help generate a steady stream of income through periodic interest payments.

4. No value loss:
   Treasury bonds are considered extremely safe investments — because the government backs your principal investment and interest payment.

5. Diversifying Your Investment:
   Investing in Bonds and T-Bills can be the best way of not putting your eggs in a single basket.

Visit your nearest Housing Finance Bank branch today for more information on how to invest in Treasury Bills/Bonds.