What is a CDS Account?
Part 1/15: A Beginner’s Guide to Investing in Treasury Bonds & Bills
What is a CDS Account?
If you want to invest in treasury bills and bonds in Uganda, the first thing you need is a Central Depository System (CDS) account. Think of it as a digital wallet that securely holds your government securities.
Why Do You Need a CDS Account?
A CDS account is like a bank account, but instead of holding cash, it holds your treasury investments. When you buy a T-bill or T-bond, it is electronically stored in your CDS account—no physical certificates needed!
Who Manages the CDS System?
The Bank of Uganda (BoU) manages the CDS system, ensuring transparency and security. However, you can’t open a CDS account directly with BoU—you must go through a commercial bank (primary dealer) like Stanbic, Absa, or Centenary Bank.
Benefits of a CDS Account
Safe & Secure – No risk of losing paper certificates.
Easy Buying & Selling – Trade treasury securities seamlessly.
Track Your Investments – View your holdings anytime.
How to Get Started
Opening a CDS account is free and takes just a few steps. Stay tuned for the next article on how to open a CDS account and start investing!
This is part of the series A Beginner’s Guide to Investing in Treasury Bills and Bonds.
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