The treasury department of the government of each nation sells the T-bills or the Treasury Savings Bonds to the public to raise capital through debt. Treasury Savings Bonds are very much preferred by the investors when the inflation rate is low so that the return gathered on the Treasury Savings Bonds are high. The T-Bills have a fixed rate of return and the interest is calculated on a semi annual basis. These bonds have the facility to pay the interest to the investors on a semi annual basis. Treasury Savings Bonds are not so attractive due to the low return on the investment made but on the other these bonds are the safest form of investment with the back ground of the government behind the Treasury Savings Bonds. These bonds are popular in the rural areas among the rural people and these villagers are encouraged to save their money by depositing in the treasury bonds. The market for bonds is only in the rural areas of the country and mostly the illiterates and low income families to keep their investments safe and not get cheated by attractive financial institutions promising higher return will prefer the Treasury Savings Bonds as an investment option. The treasury department along with the postal department has been successful in reaching to the masses and especially in the rural areas to save on a monthly regular basis using the recurring deposit option and the treasury savings bonds form a long term savings option for the farmers and the villagers. In the urban areas, these treasury bonds are very unpopular due to their non liquid nature and low rate of return. The urban population will be in need of money all the time and hence investing in bonds is not suitable for them as after investment in the treasury savings bonds, the amount has to be totally forgotten till the maturity period and also there are no facilities to get loans on these bonds which is another major drawback. The Treasury Savings Bonds are traded in the secondary market and are very popular investment places for pensioners, senior citizens and low risk taking investor group. It is strongly advised that investing in bonds must be viewed as a long term investment option and there is no place for speculators in the bonds. Investors must be determined to invest for a minimum of five years in the Treasury Savings Bonds and then invest in the bonds understanding both the advantages and limitations.