Treasury bills — what they are and how they work

What are treasury bills?

Treasury bills (T-bills) are short-term debt securities issued by the Treasury. They have a maturity period of up to 1 year (most commonly 13, 26 or 52 weeks).

Treasury bills are considered among the safest financial instruments — the state is the guarantor.

How do treasury bills work?

Treasury bills are sold at a discount — you buy them below nominal value, and on maturity date you receive the full amount. The difference is your profit.

Example:

• Nominal value: 10,000 PLN
• Purchase price (with discount): 9,700 PLN
• Profit after maturity: 300 PLN (3.09% for the period)

Bills don't pay coupons — all profit comes from the discount.

Treasury bills in Poland

In Poland, treasury bills are issued by the Ministry of Finance. They are sold at auctions organized by NBP (Polish National Bank). Minimum nominal value is 10,000 PLN, which makes them accessible mainly to institutions and wealthier investors.

Individual investors can gain exposure to treasury bills indirectly — through money market funds that invest in T-bills, among others.

Treasury bills vs government bonds

When to consider treasury bills?

• You're looking for safe cash parking for a short period
• You expect interest rate increases (short term = lower risk)
• You need a liquid instrument without credit risk

For most individual investors, a money market fund or savings bonds are a more convenient alternative.

How can Freenance help

Freenance tracks all your assets — including money market funds investing in treasury bills. You'll see how the safe part of your portfolio affects your overall Runway and allocation.

👉 Add assets to Freenance — freenance.io