Treasury Bills & Bonds

T-Bills and T-Notes are indexed instruments.

The main difference is that T-Bills have maturities of less than one year while T-Notes have maturities of more than one year.

If you hold T-Bills and Government Bonds until maturity, payment of both principal and interest is guaranteed.

Features

T-Bills and T-Notes are short and long-term government borrowing instruments.

They are guaranteed by the Albanian Government.
They provide fixed returns (if you invest your money till due maturity) and are liquid instruments.
In a volatile market where the interest rates are going up, there is risk.
Investing on securities is not like investing on time deposit. It is possible that you lose a part of your principal amount if you cannot hold securities till their due maturity.
BKT offers full range custody service for your T-bills and T-notes investment.
They may be bought and sold between 09:00-14:00 with the same day value as long as you perform your transactions with BKT’s custody account
T-Bills are sold at a discount and the gain at maturity is known in advance.
T-notes have coupons. Coupon-bearing T-notes are issued at fixed or floating interest rates.
Coupon payments of T-Notes are done semi-annually (on every 6-months)
These instruments may be bought or sold before the original due maturity at current market prices as long as you keep your T-Bills/T-Notes investment in BKT’s custody Acc.
T-Bills can be converted to cash at any time. They may be sold on the secondary market through the bank’s branches before maturity.
If you’re interested in putting your savings to work in the short or long term and be assured of reliable, fixed income, then buying securities is for you.
To trade in Government Bonds and T-Bills, all you need is a Current Account.

The interest rates quoted are gross rates. For individuals the bank is required by law to apply withholding tax over bank interest.