Government Treasury Bills
Secure, Guaranteed Short-Term Government Debt Instruments
Government Treasury Bills
Secure, Guaranteed Short-Term Government Debt Instruments
Treasury Bills are short-term, risk-free debt instruments issued by the Government through the Central Bank, offering guaranteed returns on fixed tenors.
Product Overview
Treasury Bills (T-Bills) are short-term sovereign debt securities issued by the Government of Uganda via the Bank of Uganda. They are offered at a discount to their face value and redeemed at full face value upon maturity.
As a 100% government-backed investment, Treasury Bills represent one of the safest avenues to lock away short-term capital while earning predictable, competitive yields across 91-day, 182-day, and 364-day maturities.
Key Features
• Fixed Tenors Available: Choose between 91 days (3 months), 182 days (6 months), and 364 days (1 year).
• Discounted Purchase: Sold at a discount and redeemed at full face value at maturity.
• Zero Default Risk: 100% backed and guaranteed by the Government of Uganda.
• Transparent Bidding Cycles: Issued through regular Bank of Uganda auctions.
• Secondary Market Tradability: Can be liquidated prior to maturity if urgent cash is required.
Benefits
• Guaranteed Returns: Lock in fixed yields with zero risk of capital loss.
• Predictable Cash Flow: Know your exact profit and maturity payout upfront.
• Ideal for Goal-Based Savings: Perfect for parking money earmarked for short-term projects or taxes.
• Collateral Value: Can be pledged as recognized collateral for securing credit facilities.
• Simplified Access: Invest directly through our pooled mechanism without needing a direct primary dealer bank account.
How to Get Started
1. Register as a Member: Fill out the UIPE SACCO membership registration form.
2. Purchase Minimum Shares: Activate your full membership by subscribing to and purchasing the required SACCO share capital.
3. Make Regular Savings / Deposits: Fund your investment account through regular monthly contributions, standing orders, Bank Transfer, or Mobile Money.
Frequently Asked Questions
Q: What is the difference between a Treasury Bill and a Treasury Bond?
A: Treasury Bills are short-term investments with maturities up to 1 year (91, 182, or 364 days), whereas Treasury Bonds are long-term instruments ranging from 2 to 20 years.
Q: How do I earn my profit?
A: T-Bills are bought at a discount (e.g., pay UGX 90,000) and redeemed at full face value (UGX 100,000) at maturity. The difference represents your earned interest.
Q: Is withholding tax deducted from Treasury Bill earnings?
A: Yes, in Uganda, government securities are subject to statutory withholding tax deducted at source upon maturity.
Q: Can I exit before maturity?
A: Yes, securities can be sold on the secondary market before maturity at prevailing market rates.
Ready to Invest?
Join UIPE SACCO today and start your journey towards financial growth and stability.