Finance · Free tool
T-Bill Yield Calculator
Treasury Bills are zero-coupon instruments issued by RBI on behalf of GoI. You buy at a discount; face value paid at maturity. Annualised yield depends on tenure (91/182/364 days).
Tenure: 91 days
How T-Bills work
Treasury Bills are short-term zero-coupon debt instruments issued by the Reserve Bank of India on behalf of the Government of India. You buy at a discount to face value (e.g. ₹98.50 for a face value of ₹100) and receive ₹100 at maturity. The difference is your return. There is no periodic interest payment.
The three tenures
- 91-day T-Bill — auctioned every Wednesday, settled the next Friday. The benchmark short-term risk-free rate in India.
- 182-day T-Bill — auctioned alternate Wednesdays.
- 364-day T-Bill — auctioned alternate Wednesdays. Closest substitute for a 1-year FD without TDS at source.
The yield formula
Yield = ((Face value − Price) ÷ Price) × (365 ÷ days to maturity) × 100. So a 91-day T-Bill bought at ₹98.50 yields ((100 − 98.50) ÷ 98.50) × (365 ÷ 91) = 6.11% annualised. The annualisation factor is critical — without it, T-Bill yields look misleadingly low.
Tax on T-Bill returns
The discount earned is taxable as short-term capital gain at your slab rate — not at the flat 15% STCG that applies to equity. This is why T-Bills are net-of-tax inferior to debt mutual funds (which had indexation benefits until April 2023). However, post the 2023 debt-fund tax change, T-Bills are now competitive again — both are slab-taxed.
How to buy T-Bills as a retail investor
The cleanest route is RBI Retail Direct (rbiretaildirect.org.in) — free, no broker. You can also buy through your bank or broker on the “non-competitive” auction window. Minimum investment is ₹10,000. T-Bills are pure sovereign credit — zero default risk — making them the cleanest emergency-fund parking option, better than even SBI FDs for amounts above ₹5 lakh where DICGC insurance caps out.
Compare T-Bill vs FD vs liquid fund returns using our FD calculator and liquid fund vs sweep FD tool.
FAQ
Where do I buy T-Bills?
Direct via RBI Retail Direct (rbiretaildirect.org.in) — zero charges. Or via banks/brokers — small fees apply. Auctions every Wednesday.
Are T-Bills risk-free?
Sovereign default risk = essentially zero. But interest rate risk if you sell before maturity — yields move inversely to prices.
Tax on T-Bill returns?
The discount earned is taxable as "income from other sources" at slab rate, not as capital gains. No TDS at source.