Bank of PNG Treasury Bills, Rates, Investment and Payment Calculator

What are Bank of PNG Treasury Bills?

Treasury Bills (T-Bills) are short-term government securities issued by the Bank of Papua New Guinea (Bank of PNG) to raise funds for government operations. They are considered very safe investments because they are backed by the government.

• Maturity period: Usually 28, 91, 182, or 364 days.
• Denomination: Starting from K1,000.
• Purpose: Investors lend money to the government and earn interest at the end of the term.

How to Invest in PNG Treasury Bills

1. Open an account: Open a trading account with a licensed bank or financial institution authorized to deal with Bank of PNG T-Bills.
2. Check available T-Bills: Review the T-Bill rates and auction schedule released by Bank of PNG or through your bank. Choose your preferred maturity period.
3. Place an order: Complete the investment form at your bank. Specify the amount (Principal) and T-Bill type/maturity.
4. Pay for the T-Bill: Deposit the principal amount into the bank’s account.
5. Receive confirmation: The bank will provide a confirmation showing your investment details.

How Interest is Calculated

Interest for T-Bills is based on a simple formula:

Maturity Amount = Principal × (1 + (Interest Rate (%) × Number of Days) / (365 × 100))

Where:

• Principal: The amount you invest
• Interest Rate: Annual interest rate (%) offered
• Number of Days: Number of days until maturity

Profit Earned = Maturity Amount – Principal

How to Use the PNG T-Bills Calculator

1. Enter Principal: Type the amount you want to invest in the "Principal Invest (K)" box.
2. Enter Interest Rate: Type the T-Bill rate provided by Bank of PNG.
3. Enter Number of Days: Type the number of days until the T-Bill matures.
4. Click Calculate: Press the "Calculate" button. The calculator will show:
   • Principal Invested – your initial investment
   • Amount Received – total money at maturity
   • Profit Earned – interest earned

Example

If you invest K10,000 in a 91-day T-Bill with an interest rate of 6% per annum:

Maturity Amount = 10,000 × (1 + (6 × 91) / (365 × 100)) = 10,149.86

• Profit Earned: K149.86
• Total Amount at Maturity: K10,149.86

Tips

• T-Bills are safe but have relatively low returns compared to long-term investments.
• Always confirm the current interest rate and maturity period before investing.
• Keep your confirmation slip safe for when your T-Bill matures.

Use the calculator to calculate your interest

BPNG Treasury Bills Interest Calculator

Principal Invest (K):

Interest Rate (%):

Number of Days:

Bank of PNG Features

• Safe government-backed investments
• Flexible maturity periods: 28, 91, 182, 364 days
• Low minimum investment: K1,000
• Regularly updated T-Bill rates
• Simple interest calculation with maturity amount

use the calculator above to calculate interests