What Is The Difference Btw Treasury Bill And Fixed Deposit - Business (2)

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What Is The Difference Btw Treasury Bill And Fixed Deposit - Business (2) - Nairaland

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Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by 12345baba(m): 7:42am On Jan 07, 2018

YelloweWest:
Tb is yields more interest and is more secure since it is back up by govt.

do we have a govt?

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by wittyt98(m): 7:42am On Jan 07, 2018

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by Amosjaj(m): 7:43am On Jan 07, 2018

Wait.
Let me ask Google

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by Hallenjay: 7:43am On Jan 07, 2018

pol23:
TB is no long time ooo...
Mine in Diamond bank is for 90 days.
12%.
FD is sh*t

how much

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by stnkembu(m): 7:43am On Jan 07, 2018

You can actually liquidate an NTB before its maturity period. Your bank will have to discount the bill at a higher rate.

TB is not subjected to Withholding Taxes unlike FDs.

Sage7:
TB- interest is received at the point of debit. FD- interest is received when it is terminated.

TB- tenure must be complete before termination. FD- you can terminate anytime.

TB- interest is slightly higher vice-versa

3 Likes

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by northvietnam(m): 7:43am On Jan 07, 2018

kingpole:
You can't make a guaranteed 10% ROI with nearly no risk by buying a land or a bus in 1 year.
With Tbills or a fixed deposit investment you'd aalready be seeing profit in a few months.

Before I continue, u Don ever invest in the TB...
Cuz if u do, u will never advocate it

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by olagbemi118(m): 7:44am On Jan 07, 2018

nnadychuks:
Nigerians lazy o. How will someone put money in the bank for a whole month and expect 30%?! Whereas with mental and physical work, he could get 250% with the same money under a month.

how

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by AceVentura: 7:44am On Jan 07, 2018

Treasury Bills is a form of loan given to the government by individuals or corporates for tenors of 91days, 182days or 364days.

It is usually used by the government for capital projects & repayment is guaranteed by the government.

You can either invest in TBills through the primary or secondary market.

Primary market holds every fortnight (every 2wks) while the secondary market is every business day.

If you invest in the primary market, you can't liquidate until maturity but for secondary markets, you can liquidate before maturity but with a penal fee or at a cost to the investor.

For fixed deposits, it's a form of investment from the financial institution. Unlike the TBills, it isn't guaranteed meaning that if the bank goes down, your money goes down with it.

Make your choice!!!

17 Likes 1 Share

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by Yazmin: 7:50am On Jan 07, 2018

id2011:
What is the diffrence btw treasury bill buying and fixed money in account, pls becos i have a brother that want to go it. which one it's ok to invest on

Hello, This may be the basics as there might be others not stated here.

1. Nature: While Treasury bills (T Bills) are Government issued investment bonds , via the CBN, Fixed deposits (FD)are issued by Commercial banks.

2. Rates: T bills have higher interest payments compared to FD's. This is due to the higher rates paid on them for same trnors as the former.

3. Interest payment: T bills interests are usually paid to customers at the beginning of the investment while FD's are paid after the tenor has elapsed. For example if i invest in a 91 days T bills of 2million naira say,January 1, 2018, using the interest rate applicable i.e. 12%: The interest to be paid would be about N59,835.
This would be paid to me on January 1st. Then on March 31st (after 91 days), my N2million is again credited back to my account. For FD's , my interest and principal is given to me only on March 31st upon expiry, if I am investing in same tenor as the former.

4. Taxable interest: Interest paid on T bills are not taxable. FD's have a 10% Witholding Tax (WHT)paid on the interest given you by the bank.

5. Tenors: While T bills are only available (in primary bidding by CBN) for 91, 182 , & 364 days ((except for hard to find secondary bills by bank customers, who want to sell of before maturity), FD's can be invest for a period of 1 month to 12 months.

6. Flexibility: T bills are usually harder to sell off (liquidated)when you need immediate funds and before expiry. FD's could be liquidated within 30 minutes.

7. Security for loans: You can place your T bills ,or your FD's as collateral for loans with your bank. However, recently, most banks now prefer the latter to the former.

8. T bills do not stay on the banks books and balance sheet they move to CBNn However FD's stay on the bank books and can be given out as loans to other customers . Hence banks preferably for theor customers to do the latter rather than the former (for profit purposes).

9. A minimum amount of N500,000 is required to commence the former, the latter could start with as low as N100,000 for most banks.

10. T bills start with Letter T while FD's start with letter F....

I would add more later as the interest on the thread increases....watch out!!!!!

lemme go and join fuel queue before kachikwu increases it to N171 per liter!

35 Likes 4 Shares

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by DaddyFreeze: 7:50am On Jan 07, 2018

northvietnam:

I prefer buying a piece of land or giving out a bus on higher purchase(involve a lawyer in the agreement) than invest in all those trash...

The last one I did made me cry...

You mean you regret putting your money into a bank? .

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by DaddyFreeze: 7:50am On Jan 07, 2018

pol23:
TB is no long time ooo...
Mine in Diamond bank is for 90 days.
12%.
FD is sh*t

Seriously? Is Diamond bank with the highest interest rate? .

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by AceVentura: 7:51am On Jan 07, 2018

Sage7:
TB- interest is received at the point of debit. FD- interest is received when it is terminated.

TB- tenure must be complete before termination. FD- you can terminate anytime.

TB- interest is slightly higher vice-versa

Tenor of TBills only in the primary market must be complete but not so in the secondary market.

Currently, interest rate/ yields in fixed deposits is higher than the TBills because the government isn't pushing for funds. We're in a new financial/ budget year thus the low interest rates on TBills.

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by Spetzzy7(m): 7:52am On Jan 07, 2018

Storing Bitcoin is better than both

1 Like

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by DaddyFreeze: 7:53am On Jan 07, 2018

henryomez:
Tbills is fix deposit with cbn while the other is with your Bank. Another diff is that tbills Starts from 1m and above while fd is 100k. Tbills has to be either 3months 6months and 1yr while fd is from 1month. Tbills rate is same irrespective of the amount its the tenor that determines the rate while fd ia amount that determines the rate. Fd pays your interest at maturity while tbills pays upfront these are the major diff

TB starts from 1 million? Seriously? .

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by kingpole: 7:54am On Jan 07, 2018

No, I haven't.
Have you ever been in the transport business? That's just investing in an asset that loses value with every mile your driver takes.
While land investment maybe be a good way to get an appreciative asset (yes, I've got a few) it takes many years for your investment to break even. Land investment is like a retirement plan.

northvietnam:

Before I continue, u Don ever invest in the TB...
Cuz if u do, u will never advocate it

2 Likes 1 Share

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by tballeyy(m): 7:55am On Jan 07, 2018

Why nairaland dey give us JAMB question this sunday morning, don't mind this topic and go to church and pray againt the fulani people so that they will not visit us this New year

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by mfm04622: 7:55am On Jan 07, 2018

Beress:

Based on this, it means N1m TB will give u N480k in one year... I think is cool sha

No!!! It will give you about 110k per annum

4 Likes 1 Share

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by equity1(m): 7:55am On Jan 07, 2018

id2011:
What is the diffrence btw treasury bill buying and fixed money in account, pls becos i have a brother that want to go it. which one it's ok to invest on

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by SuccesYear: 7:55am On Jan 07, 2018

12345baba:
do we have a govt?

go and commit murder first then u'll hv ur answer

3 Likes

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by northvietnam(m): 7:56am On Jan 07, 2018

DaddyFreeze:

You mean you regret putting your money into a bank? .

Jesus....
Come dey send u?
Where in my mentions did I use those?...

Ayam tired. Appy sunday Oga...

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by broadstreet: 7:57am On Jan 07, 2018

Pls guru in da house, I need actual amount 1million investes in TB will give me after 90days and can someone give me the formula to work TB out. Thanks using 12% interest.

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by 12345baba(m): 8:02am On Jan 07, 2018

SuccesYear:
go and commit murder first then u'll hv ur answer

silly self-servicer , go make trailer jam u

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by boiz2men(m): 8:02am On Jan 07, 2018

ladyF:
I can't even use my money to do any of the above. I'd rather use it to buy bitcoin when it dips. Bitcoin is bae!

It's LadyF again.

Do you stay in Lagos? I like to buy some

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by Mrviktor(m): 8:04am On Jan 07, 2018

Another nice place to put it is in insurance.. They give as high as 10% on fixed deposits..

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by ecolime(m): 8:05am On Jan 07, 2018

Beress:

Based on this, it means N1m TB will give u N480k in one year... I think is cool sha

Wrong.

12% on 1M for 365 days is N120k.

12% on 1M for 180 days is N60k

12% on 1M for 90 days is N30k

Doesn't make sense IMHO. I would rather invest the money in a good business than tie it down in the bank or cbn.

5 Likes

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by rozayx5(m): 8:05am On Jan 07, 2018

Spetzzy7:
Storing Bitcoin is better than both

Too many cheap coins with good potential out there . than to waste money doing tb and FD.

See how Ada and ripple have done more than 10,000% shocked

in few months

If its not bitcoin related. Its ancient investment cheesy

150k worth of ada coin in December last year worth about 4-5M now

undecided

1 Like

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by arrestdarrester: 8:06am On Jan 07, 2018

boiz2men:

Do you stay in Lagos? I like to buy some

Be wary of bitcoin

3 Likes

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by SuccesYear: 8:07am On Jan 07, 2018

12345baba:
silly self-servicer , go make trailer jam u

I never foreclosed u might got pained by the mention.

Nevertheless, it just an advice about ur premise

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by money121(m): 8:08am On Jan 07, 2018

ladyF:
I can't even use my money to do any of the above. I'd rather use it to buy bitcoin when it dips. Bitcoin is bae!

It's LadyF again.

Crypto money I sight u dear cheesy

Re: What Is The Difference Btw Treasury Bill And Fixed Deposit by guardiola: 8:08am On Jan 07, 2018

broadstreet:
Pls guru in da house, I need actual amount 1million investes in TB will give me after 90days and can someone give me the formula to work TB out. Thanks using 12% interest.

12% is what you get in 12 months, so you effectively get 1% for each month, 90 days will be 3%.

Interests are quoted per annum

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