The 364-day Treasury Bill is the longest standard tenor, for a full-year horizon.
It suits investors who want to lock in a rate for about a year in exchange for potentially higher returns.
If you don't need the funds for a while, this maximises the discount window among standard tenors.
Faster accessHigher potential return
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Key Facts
Investment term
364 days
Reinvestments / year
~1×
Liquidity profile
Lowest among standard tenors
Best for
Locking in for ~1 year
Definition
What is the 364-Day T-Bill?
A 364-day Treasury Bill is a government investment that matures in about one year. You buy below face value and receive the full amount at maturity. As the longest standard tenor, it typically offers the highest potential return, in exchange for the longest commitment.
Suitability & Benefits
Who might consider it, and why choose it?
Have a ~1-year horizonWant the highest standard returnWant to lock in a rateDon't need the funds soon
- +Full-year horizon. Lock in a known outcome for about twelve months.
- +Highest potential return. Usually the strongest yield among the standard tenors.
- +Fewest reinvestments. A single decision covers a whole year.
- +Rate lock-in. Useful when you want to secure today's yield for longer.
Considerations
Things to consider & next steps
- –Least flexibility. Your funds are committed for the longest standard period.
- –Opportunity cost. If rates rise after purchase, you're locked at the earlier yield.
- –No near-term access. Unsuitable if you might need the money before maturity.
When this may be a good fitYou can commit funds for about a year, want the highest standard-tenor return, and are comfortable locking in today's rate.
Next Step
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