Bizibi:
is tb from the same commercial banks that run fixed deposits?

TB is from FG not zenith or UBA.

The banks are middle men cos FG will not collect money from you directly

davodyguy:


TB is from FG not zenith or UBA.

The banks are middle men cos FG will not collect money from you directly

OK,I will go through the banks to invest in it......thanks

[quote author=Acidosis post=59235220]


365 days, not 60 days. Available tenors on FG treasury bills are: 3 months, 6 months and 1 year.

Peradventure you're able to get 18% on a 3 month tenor, your interest still wouldn't be 180k. Rather, you'd get 180k/4 = N45k; 18% on a 6 month tenor will fetch you 180k/2 = N90k. Its a compound interest thing. Do not think N1m at 18% interest rate will get you 180,000 in 3 months or 6 months.. This isn't MMM. That will only happen when you inject your N1m for a whole year (365 days).

For instance, if you decide to invest N1m at 18%, 365 day tenor, you will get about N180,000 interest almost immediately, your principal (N1m) would be paid back, UNFAILINGLY, at the 365th day.

Your bank is only an agent/intermediary between you and the apex bank (CBN). Banks are not i/c of T-Bills, that's why many bankers don't know how it works, some that have T-Bills knowledge find it difficult to advise their customers. All things being equal, no banker will encourage a customer to invest in T-Bills, this is the reason customers need to be knowledgeable and take charge of their hard earned monies.
I really understand now, i put more than two million in fd in gt bank, now i just regretted but please i want to ask if i put money into tb, will they give me the intrest before the time ? Thanks

really understand now, i put more than two million in fd in gt bank, now i just regretted but please i want to ask if i put money into tb, will they give me the intrest before the time ? Thanks

dunkem21:
Try us, Please. Treasury bills can't offer what I am about to give you..

I will give you 10% on your investment monthly and ensure you have a LIFE cover if anything happens to you while your money is with us.. God forbid!

Save your cash, save your LIFE!

insurance or what?

Of course it is expected. if you walk up to your account officer and tell him or her that you want to subscribe for treasury bill, you will see how uncomfortable he/she will be and will try to convince you to go for fixed deposit rather.
They can only step up their game or hope that the interest rates of TB falls, but the latter won't happen any time soon

mark0020:

really understand now, i put more than two million in fd in gt bank, now i just regretted but please i want to ask if i put money into tb, will they give me the intrest before the time ? Thanks

N2m in FD? Sh!t, I'm regretting that with you bro.

If you put N2m in TBills (1 year tenor), your interest would be paid almost immediately while your principal would be returned at the end of the tenor.

Acidosis:


N2m in FD? Sh!t, I'm regretting that with you bro.

If you put N2m in TBills (1 year tenor), your interest would be paid almost immediately while your principal would be returned at the end of the tenor.

Thanks bro, i will have to stop it thats about 350k?

For those interested in getting more knowledge of treasury bills,here is the thread

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

davodyguy:


lol. This one no be stock or shares

You have 500K. Instead of taking it to the bank and be getting small interest,

Give it to the federal government for development and in return, the fg gives you 18.5% and keep the money for 1 year.

After 1 year, the FG gives you your money back 100%.

500k investment from 7/8/2017, you get N90,000 tomorrow 8/8/17

Next year you get your 500k back in full

wow

NOTE: "364 instrument...oversubscribed by N91.1billion". I don't understand our model of economy. I must first conceed that the investors have the right to invest their funds wherever they wish.
But one easily knows that whatever money the Nigeria govt raises through tresury bill goes to
a. payment of civil servant's salaries,
b payment of entitlments of public office holder.
c. repayment of loans and interest on loans both domestic and foreign.
These are clearly unproductive spendings. Imagine if institutional investors would channel N91.1billion to agricultural ventures which can yield steady flow of income (yes! foreign exchange) even in the short run. I takes less than 364 days to grow yam, castor seed, sesame seed etc.

This is just what I think.

CarlosTheJackal:
It says instead of putting your 1million naira in Bank Fixed deposit to get 5% interest which is 50k, people are now buying Treasury bills which is around 18% interest that's about 180k in 60days

I guess d percentage is in per annum

On 1M it ll be 15k in this case

LordofNaija:

insurance or what?

Yes.. The new innovation of the industry. Most people here think of only the interest accrued on their capital but we are offering interest + extra life package to keep our customers assured.

Safety first!

How much is the minimum amount one can invest on TBs?

DinoP:
NOTE: "364 instrument...oversubscribed by N91.1billion". I don't understand our model of economy. I must first conceed that the investors have the right to invest their funds wherever they wish.
But one easily knows that whatever money the Nigeria govt raises through tresury bill goes to
a. payment of civil servant's salaries,
b payment of entitlments of public office holder.
c. repayment of loans and interest on loans both domestic and foreign.
These are clearly unproductive spendings. Imagine if institutional investors would channel N91.1billion to agricultural ventures which can yield steady flow of income (yes! foreign exchange) even in the short run. I takes less than 364 days to grow yam, castor seed, sesame seed etc.

This is just what I think.

Reasonable position you have, you only forgot that the debt is short term and can only carter for short term needs, unless you want to tell us that the so called Agro ventures is short term as well.

davodyguy:


lol. This one no be stock or shares

You have 500K. Instead of taking it to the bank and be getting small interest,

Give it to the federal government for development and in return, the fg gives you 18.5% and keep the money for 1 year.

After 1 year, the FG gives you your money back 100%.

500k investment from 7/8/2017, you get N90,000 tomorrow 8/8/17

Next year you get your 500k back in full

Thanks. i will go for it.

dunkem21:

Yes.. The new innovation of the industry.

which coy is that?

ajebuter:
Even enemyofprogress/babangbali entire saving of N235:47k from his mai-ruwa work?

Vickyrotex joh, have mercy on him..

I gats to think about it

LordofNaija:

which coy is that?

American International Coy..

We ensure you live LIFE like d Americans

skarlett:
Can someone please explain, the whole thing looks gibberish to me

You no go school?

SweetJoystick:

You no go school?

Harsh. Most times, you don't know these things if you never do am.

dunkem21:


Harsh. Most times, you don't know these things if you never do am.

Lol the words used in the write up are not ambiguous nau, it's even stated in the write up that they are going for treasury bills now because it's rate is higher and customers can't get that rate when money is deposited in accounts or fixed

Kala11:
How much is the minimum amount one can invest on TBs?

You can buy for as low as N1,000 and in multiples of N1,000 thereafter. However, Banks typically accept minimum purchases of N100,000

dunkem21:

American International Coy..
We ensure you live LIFE like d Americans

Haba mallam for Naija abi USA

skarlett:


Oh wow, that's really cool

So Tier 2 banks are not comfortable with this development, yeah

You are learning fast!

Basically, it is all the Tiered Banks that are not comfortable. Fixed deposit funds resides with the bank and they can make more money from your money, but Treasury bills funds goes to the CBN.

LordofNaija:

Haba mallam for Naija abi USA

For Naija here, bros. Una dey call am AIICO insurance here, some dey call am ALICO abi ALIKO sef

..Wanna be an American?..

mark0020:
Thanks bro, i will have to stop it thats about 350k?

Exactly 360k

davide470:
You are learning fast!

Basically, it is all the Tiered Banks that are not comfortable. Fixed deposit funds resides with the bank and they can make more money from your money, but Treasury bills funds goes to the CBN.

Don't spoil* their business please. Remember, it is from those money that they pay salaries, render services and initiate cooperate responsibilities.

dunkem21:
Try us, Please. Treasury bills can't offer what I am about to give you..

I will give you 10% on your investment monthly and ensure you have a LIFE cover if anything happens to you while your money is with us.. God forbid!

Save your cash, save your LIFE!

so what is it you are doing that banks cannot do, are you trading in stocks and commodities or your are doing pure jazz.... which one?

dunkem21:


Don't spoil* their business please. Remember, it is from those money that they pay salaries, render services and initiate cooperate responsibilities.

Bruv,

In a way, they actually make more money from T-bills than Fixed Deposit. FD increases their asset base in terms of deposit and that is a bragging right. Also, majority of their income comes from FX Transactions (Non-Interest Income)

So, i know not what you say.

CarlosTheJackal:
It says instead of putting your 1million naira in Bank Fixed deposit to get 5% interest which is 50k, people are now buying Treasury bills which is around 18% interest that's about 180k in 60days

18% in one year
17% in six months
13% in three months

CarlosTheJackal:
It says instead of putting your 1million naira in Bank Fixed deposit to get 5% interest which is 50k, people are now buying Treasury bills which is around 18% interest that's about 180k in 60days

These figures are not exact ...The rates are per anum and are calculated on a pro rata basis.. By implications, for a 60 days TBILLS selling at 18% you are manipulating the face value by (18%*60/365)