What are Treasury bills?

A Treasury bill (or T-bill) is a short-term debt security issued by the US Government with a maturity period ranging from four weeks to one year. T-bills are purchased for a discount (less than $100) and pay out their par value ($100) at maturity - the difference is your interest. This interest is subject to federal taxes, but exempt from state or local taxes. For example, let's say a $1,000 T-bill was sold at a discounted price of $950. Then the T-bill reaches maturity, the investor is paid $1,000—the face value of the T-bill—resulting in a $50 return. Because T-bills are backed by the full faith and credit of the US Government, they are considered one of the safest assets for an investor’s portfolio.

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Investments in T-bills: Not FDIC Insured; No Bank Guarantee; May Lose Value.

All U.S. Treasury investments and investment advisory services provided by Jiko Securities, Inc., a registered broker-dealer, member FINRA and SIPC. Securities in your account are protected up to $500,000. For details, please see www.sipc.org. Banking services provided by Jiko Bank, a division of Mid-Central National Bank.

Jiko Group, Inc. and its affiliates do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. See FINRA BrokerCheck, Jiko U.S. Treasuries Risk Disclosures and Jiko Securities Inc. Form CRS.

What is a Treasury Account?

How does a Treasury Account work? (Assumes 26-week T-bill strategy)

Why is there cash in my Treasury Account?

Is the Treasury Account protected under FDIC or SIPC?

What interest rate do I earn, and why is it purchased in $100 increments?