UK Treasury Bills

[unsync]

Are UK T Bills worth investing in? Has anyone any advice either way please?

Like with everything, it depends.

What are your investment objectives and your attitude to risk?

I don't have gilts and never have, but that might change in future.

Do you mean T-Bills? These are different to Gilts, they are short term, pay no interest and are not traded on the secondary market. Any gain is taxed as income, not CGT

Yes T-Bills, just thought as a short term place to stick some cash, might be worth looking at. So you literally just get your money back plus x% on top, have I understood that right? Relatively low risk?

@unsync you buy the T-Bills at the market price on the day of tender and you receive back the face value at maturity. You will also pay any transaction fees for the platform you buy through. T-Bills are sold through an auction so you won't know the price until the end of the auction

Yields are broadly the same as the interest you'd receive in a savings account so I can't see any benefit for the average retail customer

@unsync you have sent me down a rabbit hole looking into T-bills further.

You can get tender results here https://www.dmo.gov.uk/data/pdfdatareport?reportCode=D2.2A

This show the price they were sold at. If you search for last week you can see the yield is about 4.5% for each of the bills. This is as I would expect as it is broadly the same as best available instant access savings accounts

I would guess T-bills would be useful if you wanted to hold cash inside a SIPP or S&S ISA, or if you have a large amount of cash to save for a short period of time and you'd go over the FCA £85k limit for a bank.

Yes, those are good points that I hadn't thought of. Thank you.