ednut1:
Tbills. Tax free. Unlike fixed deposits

Yes, its tax free, however, the upfront interest is subject to a custodian fee of 0.10% of the face value, 5% VAT on custodian fee and the commission charged by the primary dealer/agent you are buying it through (this varies from Bank to Bank). Whichever way, Tbills is much more better presently.

can one start a treasury bill for let say 500K

prinsam30:
can one start a treasury bill for let say 500K

In the primary market, NO. But in the secondary market, yes, subject to availability.

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....

how can one invest in treasury bill, where can one see to invest in Dem,, can one starts small, and increase later

mantosa:
I dont get your calculations please. 13.9 % of 10M is 1,390,000

Me self no understand. For every #10.000.000, I pays a tithe of #1,000,000 which is 10%

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....

Bossman....Pls, elaborate on how you came about the figure?? Thanks

mantosa:
I dont get your calculations please. 13.9 % of 10M is 1,390,000

You sabi book

dotcomnamename:
.

UR PAPA PLAY POOL WELL WELL AND IM DON ENTER UR BRAIN WELL WELL!

mantosa:
I dont get your calculations please. 13.9 % of 10M is 1,390,000

The amount you've stated is for a full year.

You need to divide the 1,390,000 by 12 to get the monthly figure = 115,833

Then multiply it by 3 (90 days tenor is 3 months) = N347,500

tundechange:


In the primary market, NO. But in the secondary market, yes, subject to availability.

I'm not really into all these financial brouhaha but after seeing this I think I need to check out this treasury bills, it's like it pays.

currently I'm banking with Gtbank, Access, FCMB, FirstBank and UBA, Pls which of these banks is more reliable thanks in a million

eph123:

The amount you've stated is for a full year.
You need to divide the 1,390,000 by 12 to get the monthly figure = 115,833
Then multiply it by 3 (90 days tenor is 3 months) = N347,500

is far better to do this for a year now

exlinkleads:



is far better to do this for a year now

Not everyone wants to tie their money down for a year, and secondly rates could go higher but meanwhile you would be locked in to the given rate.

prinsam30:



I'm not really into all these financial brouhaha but after seeing this I think I need to check out this treasury bills, it's like it pays.

currently I'm banking with Gtbank, Access, FCMB, FirstBank and UBA, Pls which of these banks is more reliable thanks in a million

Cant really say which of these Banks is more reliable when it comes to Tbills. U can do a sampling on them all to get their offer rates.

tundechange:


Cant really say which of these Banks is more reliable when it comes to Tbills. U can do a sampling on them all to get their offer rates.

thanks again, this is great

Thanks a lot for the explanation.

eph123:


The amount you've stated is for a full year.

You need to divide the 1,390,000 by 12 to get the monthly figure = 115,833

Then multiply it by 3 (90 days tenor is 3 months) = N347,500

Treasury bill still pays better than fixed deposit

OreoPaschal:

Bossman....Pls, elaborate on how you came about the figure?? Thanks

Elementary simple interest formula of
A = P(1 + rt)
so investing N10M,Gives you
r = R/100 = 13.9%/100 = 0.139 per year,
3 months ÷ 12 months/year = 0.25 years,
The total amount accrued, principal plus interest,

A = 10000000(1 + (0.139 × 0.25)) = 10347500
from simple interest on a principal of N 10,000,000.00
at a rate of 13.9% per year
for 0.25 years (3 months) is N 10,347,500.00.
N 10,347,500.00-1000000=N347500

sorry for the long maths

Good post. Not yeyebrity stuff.

prinsam30:



I'm not really into all these financial brouhaha but after seeing this I think I need to check out this treasury bills, it's like it pays.

currently I'm banking with Gtbank, Access, FCMB, FirstBank and UBA, Pls which of these banks is more reliable thanks in a million

I bought with Access last week at a rate of 17.2 for 240 days but i heard first bank has the best rate.... first bank seems to also have more positive feedback.

That's correct but to a non number-cruncher, I would say:

1,390,000 ÷ 365 = ? × 90 days

mantosa:
I
dont get your calculations please. 13.9 % of 10M is 1,390,000

mantosa:
Thanks a lot for the explanation.

Don't mention.

Minus 10% tax ...

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....

Adiwana:

Elementary simple interest formula of
A = P(1 + rt)
so investing N10M,Gives you
r = R/100 = 13.9%/100 = 0.139 per year,
3 months ÷ 12 months/year = 0.25 years,
The total amount accrued, principal plus interest,

A = 10000000(1 + (0.139 × 0.25)) = 10347500
from simple interest on a principal of N 10,000,000.00
at a rate of 13.9% per year
for 0.25 years (3 months) is N 10,347,500.00.
N 10,347,500.00-1000000=N347500

sorry for the long maths

Whaooo.... thanks Man!

Sure T-bills. But you can consider mutual fund too. Stanbic Mutal fund money market offers about 18.4% at the moment.

Op,please settle for TB, reason is because it is backed by the federal government and very secured unlike fixed deposit that is solely a bank thing....

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

This man has said all I wanted to say. Go for Treasury bills

Hmmmm...Would it soon

You all should emphasize patience, we will soon launch a client friendly fund with 20% ROI per annum.

BabaCommander:
Me self no understand. For every #10.000.000, I pays a tithe of #1,000,000 which is 10%

Baba Commander, lol.
It is being pro rated i.e 91days out of 365 days (91/365), 182days out of 365days (182/365). Multiplied by the interest factor

Adiwana:
Elementary simple interest formula of A = P(1 + rt) so investing N10M,Gives you r = R/100 = 13.9%/100 = 0.139 per year, 3 months ÷ 12 months/year = 0.25 years, The total amount accrued, principal plus interest,
A = 10000000(1 + (0.139 × 0.25)) = 10347500 from simple interest on a principal of N 10,000,000.00 at a rate of 13.9% per year for 0.25 years (3 months) is N 10,347,500.00. N 10,347,500.00-1000000=N347500
sorry for the long maths

That exactly only that it's in pro rated in months.
It's correct all the same.

mantosa:
I dont get your calculations please. 13.9 % of 10M is 1,390,000

that is because you are using 12 month maturity. if you are leaving it for 91days, then they have to prorate it to the 91days. here Is the simple maths. 13.9x10m divided by 100% is equal to 1390000. now they have to take out the 91days from it since you are not investing for 12month, which is 365days. so they will divide the 1390000 by 365days which gives you 38080.2192. now multiply that by 91days gives you your interest of 346557.95