What is treasury bond?
A treasury bond is a type of government bond that is issued by a national government. Treasury bonds are long-term investments, with maturities that typically range from 10 to 30 years. They are considered to be among the safest investments in the world, as they are backed by the full faith and credit of the issuing government.
Why to invest in treasury bond?
Investing in treasury bond can be a wise decision for anyone looking for a secure and stable long-term return. These bonds are backed by the full faith of the federal government, meaning that they are virtually risk-free investments. Treasury bonds have higher interest rates than most other types of bond investments, making them a desirable option when seeking an investment opportunity with low risk and decent returns. This makes them ideal for those who are conservative investors and looking to add diversity to their portfolio while minimizing volatility risks.
How to invest in treasury bond?
Treasury bonds are issued by the government, making them incredibly secure investments since they're backed by the government of India. To begin investing, you will need to open a demat account with an online broker along with your PAN details, photograph and other bio-metric information. To purchase treasury bonds, you must then add funds to your demat account through net-banking or UPI payment options. Finally, select the amount and term of investment and the next date when it will mature so that you can receive interest payments on time.