Exectine:



If you are truly sincere, y go private on something that ought to benefit the public and site visitors?

wadetaw202:


Yeah. It is good to love to investors

policy12:


Not really, the main reason is that when a customer book for Tbills the money is moped to the head office and it will no longer be in the BO CABA. So some how they are loosing the money to their head office unlike the fixed deposit that reflect at the BO CABA.

Built2last:
Treasury bill pays more at the moment it gives you 13.9% for 90days, 17% for 182 days and 18.2% for 365 days tenor.

Mind you treasury bill pays interest up front. For instance 10million investment for 90 days will give you almost 400k. This you get on the day of the bid and your 10million is returned at the end of the 90days. It's cool money when you have plenty money to invest. Either in the primary or secondary market.

Fixed deposit rate although has a bank rate is largely determined by the branch you entered. The branch will always give you a lower rate because the lesser the interest to you, the more money the branch makes.

The best rate any Nigerian bank will give you on fixed deposit is 12% and that's if you are bringing up to 50million.

Go for treasury bill

Yazmin:



You are right.

13.9% of N10,000,000

For a 91day tenored bill is about N346,000(plus or minus).

Mind you 13% is the annual rate which should be discounted for 91 days to get the effective rate.

My field....

GeneralOjukwu:


Please explain your calculations.

13/100 x 10 million = 1,390,000 for the 90 days tenor according to my calculator.

Elaborate please. How much will i get for #50 million for 365 days?

Built2last:


Wednesday rate bt CBN ended on 18.45% for 364 day tenor. That will give you 8.96million...call it 9million naira for 50million investment. Interest is paid upfront while your 50million is returned at the expiration of 1 year

GeneralOjukwu:


I know someone going for studies for 4-5 years who wants to sell a building off at 50million+

He has no business acumen to speak of and wants a stress-free way of gaining on his investments.

Can he put the money in for 4 years and ask that the interest generated is rolled over? i.e., 59million the second year?

Good plan?

Built2last:

Treasury bill cannot run for 4 years.

You can only renew after each year.

It's a good investment. When he is ready and he needs a portfolio and asset manager. Let me know. My investment manager is good

GeneralOjukwu:


Let me ask yet another novice question. Can he do this from outside Nigeria? The renewal?

Built2last:


Feel free to ask. It's better to err on the side of caution. If you are a novice on finance. You may be an expert in something else.

To answer you, yes. Depending on the bank. Most foreign banks in Nigeria like StanbicIBTC and Standard chatered bank offer indemnity banking.

This means you can instruct the bank to do anything on your account via email, verified phone call or sms.

I have email indemnity with those banks I listed. I may be out of the country by nature of my business and I instruct them to do anything. And they have never disappointed. You may ask your bank if they offer such services.

I also ask for online access to enable me monitor my investment with them.

amjustme2:
TBills any time any day
Fixed Deposit is a gift to Nigerian banking system. TBills is for those who know what they want.


Currently IBTC has the best rates. FBN Is ranking 2. But trust me, run from Ecobank.

There a 307-Page Thread on Treasury Bill investment in Nairaland. I call it TBills Advanced Guide.

https://www.nairaland.com/878880/treasury-bills-nigeria

Alternatively join me in crypto investment get 40% in 140 working days.

Summary:

1m or <
Fixed Deposit 4-9% in 6 months (taxed)

Treasury Bills 16% in 182 days. Or 18.3% in 364 days. (tax Free)

Crypto - 40% in 140 working days. Or 400% in 261 working days after compounding interest. (tax free)

Invest Wisely

Pascopele:
Who borrows from you?

When you buy treasury bills you are basically lending money to the government (through the CBN) with a promise to pay back over 91 days, 182 days or 364 days. With Fixed deposit however, you are lending money to a bank or investment house with a promise to repay you at the expiration of the tenor (usually between one to twelve months) If you do not like to lend money to the Government then Fixed deposit is better.

What is the risk?

Treasury Bills are backed by the full faith and credit of the government and as such they are seen as almost risk free because it is very unlikely that a government can go bankrupt and not able to pay its loans. Besides the government has a tax revenue stream it can use to repay its borrowings. I am not aware that the CBN has ever defaulted.

Fixed deposits are backed by the credit rating of the bank. Unlike when you borrow from the bank, the bank does not give you any collateral when it borrows from you. However, it is obligated to pay you your interest and principal when it falls due. The bank can however default when it goes bust as we have seen in years past. When a bank fails, depositors may lose all or part of their money, including fixed depositors.

If you are weary of risk then treasury bills is best for you.

Who gives a better interest rate?

The higher the risk the higher the reward is how financial markets play and as such one will expect Treasury bill rates to be lower than fixed deposits rates. However, other factors do come into play that makes it change. Currently, Treasury Bills rate post a better rate than average fixed deposit rates in Nigeria despite the latter being the riskier of the two.

How do I get paid interests?

Some bank pay you interest at the end of the period along with the principal. Some also pay interest upfront depending on what you negotiate. Interests on Treasury Bills are paid upfront only and pays your principal at the end of the tenor.

Which one pays the most taxes?

Treasury bills are exempted from taxes, so taxes are not deducted from your interest payments. However, you are likely to pay a fee to the bank for rendering the service on your behalf. The fees are very small and almost negligible in my opinion. Interests on Fixed deposits attract withholding tax rate of 10% deductible at source by the banks and to be remitted to the relevant tax authority.

If you don’t want to be taxed then Treasury Bills is it.

Can I roll over my investments (interest and principal)?

Fixed deposits can be rolled over by banks. You simply instruct your bank to roll over the interest and principal when it matures giving you the benefit of compounding interest. It’s also a default way of saving and investing all rolled up in one. Treasury bills can’t be rolled over by default. Once the investment matures the CBN pays the money straight into your bank account.

If you are therefore looking for an investment you can roll over with ease, I suggest you go for Fixed deposits then.

Can I get my cash anytime I want?

You can get your cash anytime you want with Fixed Deposits by liquidating your account ahead of its maturity. All you need to do is to tell your bankers or investment house that you wish to cash in on your deposits. They will however, pay you interest for the period that the money was with them instead of the full tenor if you had waited till maturity. You may also incur an early withdrawal charge.

Treasury Bills on the other hand are not as flexible as fixed deposits. If you wish to cash in on your treasury bills ahead of its scheduled tenor, you will have to sell the rights to the treasury bills to the bank or to a willing buyer. The buyer will deduct the portion of the interest remaining for the period between when you terminated the investment and when it matures from your principal.

So basically, you can collect you cash in both instances except that it is perhaps faster and easier with banks

Can I use it as a collateral

Treasury Bills by their nature can be used as a collateral to collect a loan from a bank. This is because it is seen as a near risk free asset by lenders and is also quasi cash.

Fixed deposits can also be used as a collateral however the credit rating of the bank that is holding the deposits may affect the strength of it in the eye of another lender. Some banks may not accept fixed deposit in another bank as a full collateral because they don’t consider the bank a strong bank.

If you are looking to use your money as cash collateral, then Treasury Bills are more suitable

ClitRaider:

Thanks brother.
Can I get TBills in banks?
esp, Diamond Bank?

pls write back.

Built2last:
Treasury bill pays more at the moment it gives you 13.9% for 90days, 17% for 182 days and 18.2% for 365 days tenor.

Mind you treasury bill pays interest up front. For instance 10million investment for 90 days will give you almost 400k. This you get on the day of the bid and your 10million is returned at the end of the 90days. It's cool money when you have plenty money to invest. Either in the primary or secondary market.

Fixed deposit rate although has a bank rate is largely determined by the branch you entered. The branch will always give you a lower rate because the lesser the interest to you, the more money the branch makes.

The best rate any Nigerian bank will give you on fixed deposit is 12% and that's if you are bringing up to 50million.

Go for treasury bill