What is the difference between G-Secs, T-Bills and SDLs?

What is the difference between G-Secs, T-Bills and SDLs?

G-Secs (Government Securities), T-Bills (Treasury Bills), and SDLs (State Development Loans) are all debt instruments issued by central or state governments in India. While they are all considered low-risk, they differ in tenure, liquidity, and interest profiles.

Comparison table

FeatureG-SecsT-BillsSDLs
TenureLong-termShort-termLong-term
LiquidityLowHighModerate
Interest RatesModerateLowHigh

Understanding key terms

  • Tenure: Indicates how long your funds will be locked in until maturity.
  • Liquidity: Reflects how easily the instrument can be bought/sold in the market.
  • Interest rates: The returns offered; longer and riskier terms usually offer higher rates.

Making an informed choice

  • T-Bills: Best for short-term, low-risk, highly liquid needs.
  • G-Secs: Suited for long-term investors seeking stable returns.
  • SDLs: Ideal for balancing duration with better interest rates and moderate liquidity.

What if...

ScenarioResolution
You want high liquidityChoose T-Bills; they’re more frequently traded and mature faster.
You want better returns but lower risk than corporate bondsSDLs can offer higher rates than G-Secs with state government backing.
Review your investment horizon and liquidity needs before selecting an instrument. Use FYERS’ bond tools to filter and compare across instruments.

Last updated: 26 Jun 2025

    • Related Articles

    • Can I pledge G-Secs, T-Bills and SDLs through FYERS?

      Yes, you can pledge Government Securities (G-Secs) and Treasury Bills (T-Bills) through FYERS using our online Pledge portal. These instruments are classified as cash equivalents and typically carry minimal haircuts. However, SDLs (State Development ...
    • Can I invest in G-Secs, T-Bills, and SDLs through FYERS?

      Yes, FYERS offers investors the flexibility to invest in Government Securities (G-Secs), Treasury Bills (T-Bills), and State Development Loans (SDLs) across both the primary and secondary markets. Investment options available on FYERS 1. Primary ...
    • Can NRIs invest in G-Secs, T-Bills, and SDLs through FYERS?

      Yes, Non-Resident Indians (NRIs) can invest in Government Securities (G-Secs), Treasury Bills (T-Bills), and State Development Loans (SDLs) through FYERS. The investment must be routed through an NRO (Non-Resident Ordinary) Non-PIS account. ...
    • What are the applicable charges for transacting in G-Secs, T-Bills, and SDLs?

      FYERS offers commission-free investments in Government Securities (G-Secs), Treasury Bills (T-Bills), and State Development Loans (SDLs), making it cost-effective for retail investors to participate in debt markets. Charges overview Primary market ...
    • How can I invest in G-Secs, T-Bills, and SDLs through FYERS?

      Investing in Government Securities (G-Secs), Treasury Bills (T-Bills), and State Development Loans (SDLs) through FYERS is simple and fully digital. You can participate in both primary auctions and secondary market trades using the FYERS Debt Market ...