Most people do not hold government bills directly with the issuer. They hold them through a broker, bank, custodian, fund or app. Each link can add cost and risk that has nothing to do with the government’s ability to pay.
What to look at
- Ownership: is the bill held in your name, in a segregated account, or does the provider own it and owe you?
- Custody: who actually holds the asset, and what happens if the provider fails?
- Protection: which investor protection or insurance scheme applies, if any, and to what?
- Fees: is the cost a stated fee, or built into the price or rate you see?
- Cash handling: where is your cash before purchase and after maturity, and is it protected?
- Sale and withdrawal: what are the limits, timing and conditions to get out?
- Regulation: which regulator covers this provider, and in which country?
GetTbill is not an intermediary, because it holds no assets and moves no money. These questions apply to any real provider you may consider. This is general information and not advice on any provider.
Key points
- Government credit does not cover the intermediary’s failure.
- Check who owns and who holds the asset.
- Read the documents, not the label.
General information only. It is not investment, legal or tax advice. Details vary by market and can change, so check the issuer’s current rules.