PostBank Uganda has shared valuable insights on how individuals can explore government securities like treasury bills and bonds to grow their investments.
During a recent session hosted on the bank’s X Space, financial experts highlighted the benefits of these investment options and encouraged Ugandans to diversify their portfolios.
Understanding Treasury Bills and Bonds
Government securities, such as treasury bills and bonds, allow individuals to lend money to the government in exchange for interest.
These instruments are issued by the Bank of Uganda and come with varying maturity periods:
- Treasury Bills: Short-term investments with maturities of 91 days, 182 days, and 364 days.
- Treasury Bonds: Long-term investments with maturities ranging from 2 to 20 years.
How to Invest
Iga Huzairu, Head of Financial Markets at PostBank Uganda, explained that treasury bills and bonds can be accessed through two markets:
1. Primary Market: The government issues a defined auction calendar, allowing investors to know when securities are available for purchase.
2. Secondary Market: Investors can buy securities from commercial banks at any time.
The minimum investment amount is Shs 100,000, making these securities accessible to a wide range of individuals and organizations.
Why Invest in Treasury Bills and Bonds?
Alex Kakande, a financial and investment analyst, emphasized the advantages of investing in government securities over other options like real estate.
“If someone had invested Shs 6.5 million in treasury bills instead of buying land, they would have earned a 13.5% to 14% return, which is significantly higher,” he said.
Kakande also noted that while real estate can be a good long-term investment, treasury bonds offer better returns for average Ugandans looking to grow their wealth steadily.
Related: UNBS and Trade Mark Africa Seal UGX 5.5bn Deal to Boost Agro-Industrial MSMEs
PostBank’s Savings Options
In addition to government securities, PostBank offers several savings and investment products, including:
- Fixed Deposits
- Call Deposits
- Flexi Fixed Deposits
- WENDI Mobile App Savings (offering a 10% annual interest rate)
Growing Savings Culture in Uganda
According to the 2023 FinScope Survey Report, formal and informal savings in Uganda have increased from 54% in 2018 to 60%, reflecting a growing awareness of the importance of saving and investing.
A Call to Action
PostBank officials urged Ugandans to take advantage of these investment opportunities to secure their financial futures.
By diversifying into treasury bills, bonds, and other savings options, individuals can achieve steady growth and financial stability.
