Treasury bills or money market funds
Short-term money has more than one home. Treasury bills and money market funds are two common places to park cash for a while, and they differ in who stands behind them, how the return shows up and how easily the money comes back. This page explains those differences in plain terms.
Who stands behind each
A treasury bill is a short-term debt instrument issued by the government. When you buy one, you are lending to the state, and the promise to repay rests on the government. The bill itself is a direct claim on the issuer.
A money market fund is a pooled investment vehicle run by a fund manager. Many savers put cash into one pot, and the manager buys short-term instruments such as bills, deposits and similar assets on the fund's behalf. Your claim is on the fund, not directly on any single issuer.
That difference matters when you ask what could go wrong. A bill depends on the issuer meeting its obligation. A fund depends on the assets it holds, on the manager's choices and on the fund's own rules.
How the return is expressed
A treasury bill is usually sold at a discount and repaid at face value. The return is the gap between what you pay and what you receive, often quoted as a discount rate. You agree the terms when you buy, so the outcome is known if you hold to maturity.
A money market fund expresses return through its unit price and any distributions. The value builds up over time as the fund earns on its assets, and the price you see reflects that build-up after costs. The figure is not fixed in advance.
One is a locked-in discount; the other is a running unit value. The bill's return is set at purchase. The fund's return emerges as it goes, and it can move.
Liquidity and minimum amounts
A treasury bill is generally held to maturity. Selling before maturity may be possible on a secondary market, but the price then depends on conditions and you may get back less or more than you expected. Access to your money is therefore tied to the term.
Money market funds usually allow you to redeem units, though settlement may take a short time and the fund may apply rules on notice or limits. In general terms, a fund can feel more accessible for cash you may need sooner, while a bill suits money you can leave until it matures.
Minimum amounts differ by channel and product. Bills are often bought in defined lots, while funds may set entry levels of their own. The engine on this site shows the latest bill rates so you can see current market pricing.
A common mistake is treating a quoted bill rate and a fund's past unit price growth as the same kind of number. One is a fixed discount agreed at purchase; the other is a variable record that can change.
Treasury bill rates today
Latest primary auction
| Tenor | Marginal (discount) rate | True yield, our calculation |
|---|---|---|
| 91 days | 15.40% | 16.01% |
| 182 days | 15.79% | 17.14% |
| 364 days | 15.80% | 18.76% |
The marginal rate is the discount rate at which the auction cleared, as the central bank publishes it. The true yield is the same return expressed on the amount you pay; we compute it from the published rate and the number of days. Source: central bank, government securities summary.
Sources 1
Every figure on this page points to one of these. The date is the day we read the source.
- 1Central bankGovernment securities summary, Central Bank of Nigeriawww.cbn.gov.ngtreasury bill auction rates