Investing in Treasury Bills
Currently, you can invest in 1-month, 3-month, 6-month and 1-year Treasury Bills in the Finvest app.
In the near future, we plan to offer products such as high-yield spend accounts, money-market funds, Treasury Notes and Bonds, Municipal Bonds, Certificates of Deposits and International Bonds.
Yes you can place an order anytime in the Finvest app, even after market-hours.
The markets are open from 9:30 AM ET-4 PM ET during regular business days (Monday-Friday, except holidays). Orders placed outside these hours will be queued to process when the market opens on the next trading day.
Treasury Bills are short-term debt securities issued by the US Government. The US government will pay you a fixed interest rate + your investment at the end of the T-Bill maturity. Treasury Bills are considered to be of one of the safest assets in the world because they are backed by the full-faith of the US government.
The interest rate on Treasury bills (or T-bills) are at an all-time high since 2007. You can earn up to 5.3% by investing in Treasury Bills. Several savings accounts will give you far lower interest.
When you buy a Treasury Bill and hold to maturity, your interest rate is locked in! Treasury Bills are backed by the full-faith of the US government.
You also don’t have to pay state or local taxes on the interest earned!
On Finvest, you can buy Treasury Bills with maturities of 1 month, 3 month, 6 month and 1 year.
For example, if you invest in a 1-month Treasury Bill with a 5.3% annual interest rate, you will be paid your investment + interest at the end of 1-month.
Treasury Bills are issued at a discount to par value (also called face value). At maturity, you will be paid the face value of the bill - the interest you earn is the difference between the face value and the amount you invested. The face value of T-Bills are typically $1,000.
For example, let's say you invested $950. When the T-Bill matures, you will be paid $1,000 - since you paid $950 - the interest you earned is $50.
When your Treasury Bill matures, we will return your investment + interest back to the Finvest Cash Account. It might take a few days for the money to reach your bank account
You can sell your Treasury Bill anytime on Finvest. Treasury Bills are highly liquid securities.