Wednesday, October 26, 2011

What Benefits Can I Derive by Investing in Treasury Bonds

  • 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 bonds are tradable in the secondary market, you can obtain instant liquidity by selling them in the market.
  • All receipts of interest and maturity proceeds 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.
  • No stamp duty is payable on these bonds.
  • You can get the best service from the CBSL which maintains your investment in its state of the art, Scripless Security Settlement System and the fully automated Central Depository System (CDS).

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