What are T-bills?

[Arya]

What are T-bills, and how are they different from long-term bonds in terms of interest rates and maturity periods? Which one is better for investment purposes?

[Ritika]

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.