Ghana Treasury Bill Yield Calculator
Estimate your returns on 91-day, 182-day, and 364-day T-Bills.
How to Calculate Treasury Bill Rates in Ghana
Treasury Bills (T-Bills) are short-term debt instruments issued by the Government of Ghana through the Bank of Ghana. They are considered one of the safest investment options in the country because they are backed by the full faith and credit of the Ghanaian government.
The T-Bill Calculation Formula
In Ghana, T-bills are generally issued at a discount, but most retail investors and commercial banks quote the Annualized Interest Rate. To calculate how much you will earn, you can use the following formula:
Interest = (Principal × Rate × Tenor) / 364
Where:
– Principal: The amount of money you are investing.
– Rate: The annual interest rate quoted by the Bank of Ghana (expressed as a decimal).
– Tenor: The duration of the bill (91, 182, or 364 days).
– 364: The standard day count convention used by the Bank of Ghana for T-Bill calculations.
Practical Example
Suppose you invest GHS 10,000 in a 91-day T-Bill at an interest rate of 25% per annum.
- Principal: GHS 10,000
- Rate: 0.25 (25/100)
- Tenor: 91 days
Calculation: (10,000 × 0.25 × 91) / 364 = GHS 625.00
At the end of 91 days, you will receive your initial GHS 10,000 plus GHS 625 in interest, totaling GHS 10,625.
Key Things to Know About Ghana T-Bills
| Feature | Description |
|---|---|
| Risk Level | Risk-free (Sovereign guarantee) |
| Tenors Available | 91-day, 182-day, and 364-day |
| Taxation | Interest earned by individuals is currently tax-exempt in Ghana. |
| Liquidity | Can be sold back to banks before maturity (though a penalty may apply). |
How to Buy T-Bills in Ghana
You can purchase Treasury Bills through several channels:
- Commercial Banks: Visit any commercial bank in Ghana and speak to their investment desk.
- Mobile Money: Many banks now offer T-Bill purchases directly via USSD codes (e.g., *711# or bank-specific codes).
- Investment Firms: Licensed brokerage firms can also facilitate T-Bill purchases for clients.
Understanding Discount vs. Interest Rate
It is important to distinguish between the "Discount Rate" and the "Interest Yield." The Bank of Ghana often publishes the discount rate. However, for the average investor, the interest yield is what determines the actual profit in your pocket. Our calculator uses the standard interest yield method commonly applied to retail investment accounts in Ghana.