jpphilips:



Properties dnt appreciate in recession, it actually depreciates, so long as his 17% edges against inflation (unlikely though) then TBN is a sure bet

freeman67:


Thanks...Please I want find out something ,I v 6months running TB that will mature on the 16th March 2017 and I intend rolling it over to 1year .Is it possible?

My bank is Fidelity bank.

I don't know about Fidelity Bank..Haven't used them before...I don't even have account with them.. But I believe other member that know about here will comment. You can also walk into ur branch or mail them to enquire.


@Pastor If you bid 13% for 91 days and it turns out to be 18% nothing will happen...Your bank will give you the percentage you bided. Interest is paid in the banks I use between 1-3 days of auction.

ihedioramma:
Thank's for understanding me . so interest is paid befor the end of 91 e.t. c days ? . how many times in a month/year did tb tread? . what if i bid 13% and the next bid is 12% will i own bid drop or what? .

caesaraba:


Let me put in simple terms. If you have 1 million Naira in your account and use it to buy bills at 13% interest rate for 1 year(364 days), 870,000 Naira would be debited from your account, leaving you with 130,000 (13% of 1 million). Upon expiry of the the one year (tenor), You will be credited 1 million Naira. So you see, interest is paid immediately.

Now, for a 91 day t-Bill, you divide 13% by 4 = 3.25%. That's your interest.

Please elaborate on the 'bolded.'

ihedioramma:
Thank's for understand me and the simple way you put it for me to understand JAH BLESS. so i can use the interest as the 870000 is debited from my account? .

caesaraba:


Yes.

ihedioramma:
thank's . what of if i bid 18% and there bid is 17% can they put me tru?

caesaraba:


No. You'd have to bid again at the next auction.

ihedioramma:
I too they ask o, how many auction's are there in one month/year? is ecobank all so good for tb ?.

godash:


Did you get any investment letter from GTB?

godash:


Did you get any investment letter from GTB?

caesaraba:


Auctions are held roughly every 2 weeks.

tunene66:


Over time is medium to long term.

jpphilips:


There is no short or medium term with inflation, what you have is "while the inflation lasts", if you bought a plot of land for 15m in 2013, and by 2015 you have spent about 25m developing it, if you run out of cash, to dispose such asset at 40m, nobody will come near it, the final disposal price will be a function of your desperation.

That was why by August 2014, when the country was heading towards recession, smart investors hedged their funds against inflation, no capital investments, by second quarter of next year, they will buy off the assets acquired by those who were not smart enough at a cheaper price.

zamirikpo:
NOT THAT I HAVE ANY DOUBTS BUT PLS, THOSE WHO GET PAID THERE PRINCIPAL AFTER MATURITY SHOULD ALSO UPDATE US......

FOR HOPE-SAKE.........


THANK U.

REGARDS TO @FEELAMONG AND SO MANY OTHERS WHO HAVE CONTRIBUTED TO THIS WONDERFUL THREAD.......

Agbaletu:


I got mine after maturity and i re-invested with more money.

caesaraba:


Let me put in simple terms. If you have 1 million Naira in your account and use it to buy bills at 13% interest rate for 1 year(364 days), 870,000 Naira would be debited from your account, leaving you with 130,000 (13% of 1 million). Upon expiry of the the one year (tenor), You will be credited 1 million Naira. So you see, interest is paid immediately.

Now, for a 91 day t-Bill, you divide 13% by 4 = 3.25%. That's your interest.

Please elaborate on the 'bolded.'

honeyfave:


This how it should be. First bank deviated from this. What they do now is to debit 1 million from your account and later credit #130,000 to u as TB interest. Anyone to collaborate this? Need to take a decision now! Thanks

Biggybountz:


Hi

No I didn't, any advice please? I am about to email my account officer about it though

Thanks

ihedioramma:
what other bank do you use? . the later credit of #130,000 is it up to one month? .

honeyfave:


Sorry, u will get d interest on or next day of d bidding. But the whole 1 million is removed instead of 870,000.

As caesabara explained, 870k debited as face value, leaving u 130k interest. And u still get 1 million back at d end of tenure . In simple term, u intend to invest 1mill but face value 870 k is debited from your Acct, leaving 130k as interest and u get back your 1 million at d end. At d end of whole process u gain about 260k .

pls I'm not a financial person. If I wrong someone should correct me.

Cc feelamong

honeyfave:


This how it should be. First bank deviated from this. What they do now is to debit 1 million from your account and later credit #130,000 to u as TB interest. Anyone to collaborate this? Need to take a decision now! Thanks

honeyfave:


Sorry, u will get d interest on or next day of d bidding. But the whole 1 million is removed instead of 870,000.

As caesabara explained, 870k debited as face value, leaving u 130k interest. And u still get 1 million back at d end of tenure . In simple term, u intend to invest 1mill but face value 870 k is debited from your Acct, leaving 130k as interest and u get back your 1 million at d end. At d end of whole process u gain about 260k .

pls I'm not a financial person. If I wrong someone should correct me.

Cc feelamong

ihedioramma:
What bank do you use?

Agbaletu:


Zenith Bank. I have been investing since 2013.

ihedioramma:
and do they take as from #100,000?

I got mine after maturity and i re-invested with more money.

caesaraba:


Let me put in simple terms. If you have 1 million Naira in your account and use it to buy bills at 13% interest rate for 1 year(364 days), 870,000 Naira would be debited from your account, leaving you with 130,000 (13% of 1 million). Upon expiry of the the one year (tenor), You will be credited 1 million Naira. So you see, interest is paid immediately.

Now, for a 91 day t-Bill, you divide 13% by 4 = 3.25%. That's your interest.

honeyfave:

This how it should be. First bank deviated from this. What they do now is to debit 1 million from your account and later credit #130,000 to u as TB interest. Anyone to collaborate this? Need to take a decision now! Thanks

honeyfave:

Sorry, u will get d interest on or next day of d bidding. But the whole 1 million is removed instead of 870,000.
As caesabara explained, 870k debited as face value, leaving u 130k interest. And u still get 1 million back at d end of tenure . In simple term, u intend to invest 1mill but face value 870 k is debited from your Acct, leaving 130k as interest and u get back your 1 million at d end. At d end of whole process u gain about 260k .
pls I'm not a financial person. If I wrong someone should correct me.
Cc feelamong