Bank FDs vs Government Bonds: What are G-Secs, T-Bills and do they offer more returns? Read here

Government securities or G-Secs are issued by the government to meet its debt obligation. According to the Reserve Bank of India, these bills are “short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day.” Moreover, these T-Bills are issued at a discount and can be redeemed at face value at the time of maturity. These can be either short term or long term Things to note if you are investing in T-Bills or G-Secs: These bonds are backed by the government, so are considered safer than bank fixed deposits or other investment options. According to Nithin Kamath, Founder and CEO of Zerodha, “At current rates, T-bills & G-secs are much better than a bank FD.” In a tweet, he also shared the interest rate being offered by banks versus that being offered by T-Bills. Btw, they're open for investing every Monday on @CoinByZerodha https://t.co/iJolUvPBFU pic.twitter.com/rpBWIs1pOE — Nithin Kamath November 7, 2022 According to the tweet, while major lenders like HDFC, SBI, ICICI and Axis Bank are offering 4.5 percent interest on a tenor of 91 days, T-Bills are offering 6.47 percent.