Auctions are conducted on daily basis. The retail investor need not bid himself. The average price at which other big players bid is the price at which retail investors are sold the T Bills. You can buy at just a click
Instead of buying the security at a fixed price of say Rs. 100 ( being the face value) the T Bills are purchased at a discounted price. i.e. Say Rs. 98. On maturity the face value is paid i.e. Rs. 100. The earning to the investor is Rs. 2/- If the bills are for a tenure of 90 days then the investor earns Rs. 8/- on yearly basis. Thus the rate of return is 8%.
100% guaranteed by Government of India for return of Principal
Since the tenure is short i.e. 91 days, 182 days and 364 days maturity is quick. These T Bills are also listed on the stock exchnages and highly liquid
|391-Day Treasury Bill (Primary) Yield||5.32||3.19||3.23||3.32||3.36||3.36|
|182-Day Treasury Bill (Primary) Yield||5.44||3.46||3.52||3.55||3.58||3.58|
|364-Day Treasury Bill (Primary) Yield||5.53||3.57||3.63||3.69||3.73||3.73|