just like betting. u lose more than u gain! nonsense!

SCB, which bank is dat pls?

pipz:


That's not true. T Bills with over 20 different maturity dates and yields are issued every single working day. Go open an account with SCB

motherlode:

. . Thanks, I went to a branch of first bank but the person in charge told me they are having some issues with the network. I don't know if it's the truth or it was part of the plan to discourage me but he took down my details........ I mean name & phone number

. thanks once again

you are wlc and am here to help out

battleaxe:
@pipz

So if I invest say 1million at 10% for 364 days, which gives me interest of about 100k(actual interest is 99.7k), what would the bank charge be?

0.125% of 100k = 125 naira Or 0.125% of 1million =1,250 naira?

I need to clarify if yield means interest. Please give your insider tips.

Thanks.

So your investment is 1M at 10%

What would be deducted from your account when you give them a request to purchase the tbills would be 1,000,000-100,000 = 900,000


Then at maturity ie at the end of 364 days the money coming back to you account would be 1million.

Their charge would then be collected from the 1million maturity value ie you ll get 0.125% of 1million =1,250 naira

N

battleaxe:
@pipz

So if I invest say 1million at 10% for 364 days, which gives me interest of about 100k(actual interest is 99.7k), what would the bank charge be?

0.125% of 100k = 125 naira Or 0.125% of 1million =1,250 naira?

I need to clarify if yield means interest. Please give your insider tips.

Thanks.

Yes, yield is the interest earned and ur Bank is supposed to charged 0.125% off ur yield. Dats 0.125% off ur 100k interest

mrkels:



They ll charge you custodian fee of the face value or maturity value.

I don't know about any custodian fee on T bills. CBN requires u to charge only 0.125% off the yield. It takes one customer, just one customer to make a Bank sit up and stop treating thier customers unfairly

----

Svelteb:
SCB, which bank is dat pls?

Standard chartered bank. Also note that the over 20 maturities I stated earlier are traded at the secondary market. New Bills are issued forthnightly and these just have 3 Diff. Tenures 91, 182 & 364 days.

kk, we gonna talk more on this pls

pipz:


Standard chartered bank. Also note that the over 20 maturities I stated earlier are traded at the secondary market. New Bills are issued forthnightly and these just have 3 Diff. Tenures 91, 182 & 364 days.

pipz:


I don't know about any custodian fee on T bills. CBN requires u to charge only 0.125% off the yield. It takes one customer, just one customer to make a Bank sit up and stop treating thier customers unfairly

So what's the charge you talking about called?

mrkels:


So what's the charge you talking about called?

I was at the bank today, I think they called it processing fee. But I will tell you the truth it seems most bankers aren't aware of how tbills work

pipz:

I don't know about any custodian fee on T bills. CBN requires u to charge only 0.125% off the yield. It takes one customer, just one customer to make a Bank sit up and stop treating thier customers unfairly

[quote author=pipz post=33866155]

Custodianship fee is legitimate. I read it in some CBN circular a while back. The circular is available on their website

hmm....?

walemadu:
just like betting. u lose more than u gain! nonsense!

mokset123:

I was at the bank today, I think they called it processing fee. But I will tell you the truth it seems most bankers aren't aware of how tbills work

I don't think there's a processing fee in any bank brother.
And also all bankers are aware of how treasury bills work, they just don't want to acquire it for you because they are not the custodians of the funds and you know what that means, it means the deposit would not read for their branch and that can be disastrous.


Rates available as at 20/05/2015

Tenure. Maturity Date. Rate

85. 13/08/2015. 10%

162. 29/10/2015. 12%

337. 21/04/2015. 12.3%

The rates are crashing as expected. I will cry o.

Seun:
The rates are crashing as expected. I will cry o.

lol...it was expected...

I do not advise anyone to invest in treasury bills until the new government has settled down.

A lot of things are crashing now.

pipz:


I don't know about any custodian fee on T bills. CBN requires u to charge only 0.125% off the yield. It takes one customer, just one customer to make a Bank sit up and stop treating thier customers unfairly

Custodian fee is legitimate. It's so minute many investors do not notice it.

mrkels:


I don't think there's a processing fee in any bank brother.
And also all bankers are aware of how treasury bills work, they just don't want to acquire it for you because they are not the custodians of the funds and you know what that means, it means the deposit would not read for their branch and that can be disastrous.


Rates available as at 20/05/2015

Tenure. Maturity Date. Rate

85. 13/08/2015. 10%

162. 29/10/2015. 12%

337. 21/04/2015. 12.3%

well why I said they aren't aware is that,
1. When they calculated my upfront for a face value of 10 million at 9.8 % for 86 days. I was told I would be paid 230,904 naira as upfront. How is that possible

Caracta:
I do not advise anyone to invest in treasury bills until the new government has settled down.

A lot of things are crashing now.

Good idea.

Caracta:


Custodian fee is legitimate. It's so minute many investors do not notice it.

Caracta pls I need some clarifications...i'm gonna pm u pls acknowledge.

mokset123:

well why I said they aren't aware is that,
1. When they calculated my upfront for a face value of 10 million at 9.8 % for 86 days. I was told I would be paid 230,904 naira as upfront. How is that possible

they are very correct.

9.8÷100 times 10million = 980,000

980,000÷365 =2684.9315068493

That's your daily interest.

Since your tenure is 86 days, then you multiply by 86

86 * 2684.931506849 = 230904.10958904


That's your upfront interest that would be paid to you

Now note when you purchase, what would be deducted from your account would be

10,000,000 - 230904.1095890 = 9769095.890410

And then at maturity 10, 000,000 less the custodian charge would be paid back into your account.

Hope it's clear enough??

Y r u going for 9.8 percent when you can get 10percent for 85days?

Let's talk

When do you start counting the maturity date? Is it from the day your account was debited or from the day the auction held or from the day you received your TBN interest?

Marpol:
When do you start counting the maturity date? Is it from the day your account was debited or from the day the auction held or from the day you received your TBN interest?

Day your account was debited.

good day all. please i use to send my TB request to firstcontact via e-mail.but they currently rejected my request saying they only treat via the media for foreign residence only and am kind that is too busy and will not have time to go to bank during the week days.what can you advice i do?

mrkels:


Day your account was debited.

ikemefunam:
good day all. please i use to send my TB request to firstcontact via e-mail.but they currently rejected my request saying they only treat via the media for foreign residence only and am kind that is too busy and will not have time to go to bank during the week days.what can you advice i do?

Have a chat with your account officer and send to him.

If it's still futile then let's talk.

Marpol:


My account was debited by the bank even b4 the official bidding date.

Just calculate the tenure, add it to the day your account was debited. That is your maturity date.

mrkels:


they are very correct.

9.8÷100 times 10million = 980,000

980,000÷365 =2684.9315068493

That's your daily interest.

Since your tenure is 86 days, then you multiply by 86

86 * 2684.931506849 = 230904.10958904


That's your upfront interest that would be paid to you

Now note when you purchase, what would be deducted from your account would be

10,000,000 - 230904.1095890 = 9769095.890410

And then at maturity 10, 000,000 less the custodian charge would be paid back into your account.

Hope it's clear enough??

Y r u going for 9.8 percent when you can get 10percent for 85days?

Let's talk

I am grateful for your insightful breakdown.
But where my problem lies is that a friend of mine purchased tbills as at nov last year at 10% for 91 days With 9m.
8m was deducted while 1m was left as his upfront.
So why has the yield dropped in a short period of time?

mokset123:

I am grateful for your insightful breakdown.
But where my problem lies is that a friend of mine purchased tbills as at nov last year at 10% for 91 days With 9m.
8m was deducted while 1m was left as his upfront.
So why has the yield dropped in a short period of time?

That's how treasury bills works. It's the exact opposite of fixed deopsit when it comes to interest being paid.

In treasury bills, interest / yield is paid upfront or immediately yoou purchase unlike in fixed deposits when you get interest paid at maturity.