How safe are UK Treasury bills?

UK Treasury bills are issued and backed by the UK government through the UK's Debt Management Office.

Can Basic customers buy Treasury bills?

Yes. All Freetrade customers will be able to use the app to buy UK Treasury bills.

Is there a minimum investment amount for UK Treasury bills?

Yes. You can start investing in UK Treasury bills with as little as £50.

Can I cash out of a Treasury bill before its maturity?

No. You cannot sell or cash out of a UK Treasury bill before its maturity. You need to be certain before you invest that you will not need your money back before the maturity date, plus the time it will take for the money to settle.

EARN 3.46%^* WITH UK TREASURY BILLS

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Capital at risk. 1-month fixed-term investment.*Forecast annualised rate not guaranteed. Not investment advice. Other charges may apply.

Introducing UK Treasury bills

Earn 3.46% per year yield to maturity* (YTM) on Treasury bills.
Issued and backed by the UK government.

UK Treasury bills are debt instruments issued by the UK’s Debt Management Office (DMO) to finance its operations. The UK government promises to repay the amount you invest, plus a fixed return after a known period, for example, 1 month**. The yield is set during the weekly auction process and it is then fixed for the 1 month** period.

Until now, individual investors did not have direct access to UK Treasury bills.

High rates: UK Treasury bills with a competitive yield.
Low risk: Earn yield with a low risk.
Fixed term: You cannot sell or cash out of a UK Treasury bill before its 1 month** maturity.

Low-risk foundation for your investment portfolio

UK Treasury bills have different features to stocks and shares. They are lower risk than stocks and shares, but your investment is locked in until maturity.

UK Treasury bills, alongside other savings and investment products, can help build a balanced portfolio.

See how much you can earn

At Freetrade we will offer you UK Treasury bills with a 1 month** maturity.
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Let’s say you want to invest £1,000 in UK Treasury bills with a 28 day maturity and with a 5% annualised yield to maturity.

Your first 28-day period looks like:

Initial investment: £1,000

Annualised yield: 5%

Period yield: £1,000 × 5% × 28 / 365 = £3.84

Total amount after one 28-day period: £1,000 + £3.84 = £1,003.84

Automatic reinvestments

Freetrade will automatically reinvest your UK Treasury bills at maturity to keep your earnings going. You can choose to turn this feature off, or you can reinvest a partial amount at any point after purchase. We will remind you before your UK Treasury bills mature, so the control is in your hands.

Looking after your assets

Freetrade keeps its clients' cash and investments safe by:
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Separate Accounts: Your money and assets are held in separate accounts, away from Freetrade's money and assets. This means that your money and assets are protected, even if Freetrade were to become insolvent or stop doing business.

FSCS Protection: Freetrade is a member of the Financial Services Compensation Scheme (FSCS), which means that you are protected up to £85,000 for unpaid claims against Freetrade in the unlikely event of Freetrade's insolvency.

For more in-depth information on how we safeguard your money and investments read.

educational resource page

Want to learn more about UK Treasury bills?

Visit our insightful educational resource page

The DMO issues UK Treasury bills every week at different yields to maturity, that are determined by market conditions and demand, and the Bank of England base rate.

Before the issuance of the Treasury bills, the yield is uncertain. The app will show you the yield that was achieved in the previous week. Therefore, the yield you receive on your Treasury bills may be different from what your app displays at the time you place your order.

This means that you will not know exactly what yield you will receive until after you have made your investment and committed your money.

Because of the tender process, we cannot guarantee that you will receive UK Treasury bills that you have placed an order for. We take reasonable care to ensure that customer orders will be fulfilled, while also seeking to achieve a good yield.

*Rate subject to success in tender. The rate changes at every weekly tender. Forecast is not a reliable indicator of future performance. Fixed term investment of 1 month.
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**Each UK Treasury bill is a Fixed term investment of 1 month, typically 28 days. However, your money could be tied up for 31 days or more. It will cease to be available for you to withdraw from the cut-off date (usually a Thursday) on the day before we purchase the UK Treasury bill (usually a Friday). On maturity, your money will become available once we receive the maturity value one business day later. USUALLY, the maturity date is on a Friday and you receive the money on the following Monday, so your money may be tied up for 31 days or more.

***You can sell an investment in UK Money Market Funds at any time that the markets are open. It takes a few days for the sale to settle and for the money to be paid to you.