Summery of Treasury Bills and Treasury Bonds

Treasury Bills (T-Bills):

• Tenor: Short-term securities with maturities of 91 days, 182 days, and 364 days.
• Interest: Issued at a discount and redeemed at face value at maturity. The interest rate is determined by auction.
• Tradability: Tradable in the secondary market.
• Investment Amount: Minimum bid amount is Tk 100,000 or multiples thereof.

Treasury Bonds (T-Bonds):

• Tenor: Long-term securities with maturities of 2, 5, 10, 15, and 20 years.
• Interest: Coupon-bearing with semi-annual interest payments. The coupon rate is determined by auction.
• Tradability: Tradable in the secondary market
• Investment Amount: Minimum bid amount is Tk 100,000 or multiples thereof.

Best Investment for 3 Years

If your investment of 2 years, a Treasury Bond with a maturity of 2 years might be more suitable than a Treasury Bill, as T-Bills have a maximum maturity of 1 year.

However, you should consider the following:

• Interest Rate Risk: Long-term bonds are subject to interest rate fluctuations, which can affect their market value.
• Liquidity Needs: If you might need access to your funds before maturity, ensure the bond is easily tradable in the secondary market.

Procedures to Invest

For Treasury Bills:

1. Primary Market: Participate in weekly auctions (usually on Sundays) through Primary Dealers (nominated banks/financial institutions).
2. Secondary Market: Purchase from any bank or financial institution at any time.

For Treasury Bonds:

1. Primary Market: Participate in weekly auctions (usually on Tuesdays) through Primary Dealers.
2. Secondary Market: Purchase from any bank or financial institution at any time.

Steps to Invest:

1. Open a BP ID: You need to open a Business Partner Identification (BP ID) with Bangladesh Bank through a bank like BRAC Bank.
2. Participate in Auctions: Submit bids through Primary Dealers during the auction dates.
3. Secondary Market Trading: You can also buy and sell these securities in the secondary market through banks and financial institutions.