It is an absolutely risk free investment, since it is
issued by the sovereign government. Hence, they are called gilt-edged
securities meaning that they are covered by gold.
You can get the highest rate of
interest since the yield rates are determined in the market.
Since these bills are tradable in the
secondary market, you can obtain instant liquidity by selling them in the
market.
All receipts of maturity proceeds and
capital gains are fully repatriable.
You could also have a joint
investment with some other person or persons. Hence, it is a very good way to
share your investments with loved persons.
You are not subject to further
taxation, since a withholding tax of 10 percent is charged at source is the
final tax.
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