# Treasury Bill

*Markets & Instruments — Finicade finance glossary*

A Treasury bill is short-term government debt of one year or less, sold at a discount and redeemed at face value, with no coupon in between. The gap between the two prices is the interest. T-bills are the closest thing to a risk-free asset in finance and are the practical proxy for the risk-free rate in most models. They're also the direct competitor to a savings account: when bill yields exceed deposit rates, cash quietly migrates.

**Also known as:** T-bill, treasury bills, bill

**Related terms:** [Treasury Bond](https://finicade.com/glossary/treasury-bond), [Zero-Coupon Bond](https://finicade.com/glossary/zero-coupon-bond), [Money Market Fund](https://finicade.com/glossary/money-market-fund), [Risk-Free Rate](https://finicade.com/glossary/risk-free-rate), [Yield Curve](https://finicade.com/glossary/yield-curve)

Source: https://finicade.com/glossary/treasury-bill