Treasure bill

@Arya That's a great strategy. Combining an FD ladder with ultra-short funds offers a strategic safeguard against interest rate declines while ensuring that you retain liquidity. Investing provides better returns than just saving and offers peace of mind. It’s low maintenance but high impact.

I totally understand the confusion. Since rates are near their peak, trying to time the market perfectly is really tough. Rather than waiting for the "perfect" time, consider gradually putting your money into government bonds or gilt funds via an SIP.

This way, you can average out the returns and lower your risk. If rates drop, you win; if they rise, you can simply buy more. Don't miss out by staying on the sidelines.

Yes, through RBI Retail Direct and NSE goBID, you can directly invest in Treasury Bills. These platforms are very easy to use, and you can access them online. The minimum investment amount is ₹10,000.

T-bills are government debt for under a year, sold cheaper than their value, with no regular interest. Long-term government bonds mature after a year and provide periodic interest payments. Typically, longer bonds offer higher returns due to increased risk over time.

Choosing between them depends on your needs. T-bills are safe for short-term savings. Long-term bonds suit those wanting regular income over a longer period while accepting more potential risk.

With the increase in the repo rate, there will eventually be an increase in T-bill yields. With this, investors get higher returns on investments. So its very important to consider the general economic situation and future interest rates in the coming years. The interest rate will continue to rise in the future. So locking in your investment is a good move.