Treasury
7 min read
How Do You Buy U.S. Treasury Bills? A Beginner Guide
Daniel Cross
Co-founder and CEO
On this page
What is a T-bill
How yields work
Buying through Monara
Risks to know
Treasury bills are among the safest ways to earn a return on cash. Here is how they work and how a growing company can use them.
What is a T-bill
A Treasury bill is a short term loan to the U.S. government, issued for periods from four weeks to one year. You buy at a discount and receive the full face value at maturity.
Idle cash is the most expensive thing on a startup balance sheet.
How yields work
The difference between the price you pay and the face value is your return. Shorter bills reprice faster, which keeps your cash flexible as rates move.
Good to know
With Monara Treasury you can keep funds available for payroll and payments the same day while earning up to 4.2% APY.
Risks to know
Rates change, so yields are not guaranteed
Bills held to maturity return full face value
Selling early can mean a small gain or loss
