Earning higher returns than savings bank accounts and fixed deposits with treasury bills (T-bills)
06 Jun 2023
We all behave irrationally when it comes to money. For, e.g. Rs 60 lakh crores Src: @IndiaDataHub in savings bank accounts earn sub-par returns. Not all of it is for investing, but still. This status-quo bias could mean over Rs 1 lakh crores annually, if 3% more on SB rate.
Many startups keep idle funds they don’t need for the short term in their current bank accounts that generate no interest income. For businesses starting off, it is essential to optimize returns wherever possible. We wrote this recently.
By the way, currently, T-Bills are generating even more than bank fixed deposits. And you can buy them on Coin 😬 Think of a T-Bill as a fixed deposit (FD) offered by the Government of India, so the safest instrument out there.