Partnerbiz3:


Ok thanks.

Do you know about this

If I invest say 1 million in T bills for 365 days at say 18% and I terminate after 60 days, what's likely to be my penalty?

No idea but theres a thread for t.bills, im sure the guys on there can help you

Partnerbiz3:


Ok thanks.

Do you know about this

If I invest say 1 million in T bills for 365 days at say 18% and I terminate after 60 days, what's likely to be my penalty?

Let me try and break it down.

A 364 days tenored Tbill of 1M at 18% would mean that N179,506.85 interest was paid upfront based on this calculation (1,000,000*18%*364/365) while a debit of N1,000,000 - 179,506.85 = N820,493.15k was taken by the bank and would have repaid N1m at maturity

However, since you want to terminate after 60days the implication is that you would lose part of the unearned interest that was paid upfront and the bank will achieve this by deducting the amount on the principal to be repaid.

So rather than them credit you 1Million, you will be credited N850,082.19 which is based on the below calculation

Interest earned on 60days (1,000,000*18%*60/365) = N29,589.04
Amount due (to be repaid by bank) = Amount at maturity + earned interest - upfront interest
N1,000,000.00 + N29,589.04 - N179,506.85 = N850,082.19


In sum, principal invested + earned interest = N820,493.15k + N29,589.04 = N850,082.19

Caveat: I've not actually terminated any of my Tbills and this is only based on mathematical calcuations

cooldudeng:


Let me try and break it down.

A 364 days tenored Tbill of 1M at 18% would mean that N179,506.85 interest was paid upfront based on this calculation (1,000,000*18%*364/365) while a debit of N1,000,000 - 179,506.85 = N820,493.15k was taken by the bank and would have repaid N1m at maturity

However, since you want to terminate after 60days the implication is that you would lose part of the unearned interest that was paid upfront and the bank will achieve this by deducting the amount on the principal to be repaid.

So rather than them credit you 1Million, you will be credited N850,082.19 which is based on the below calculation

Interest earned on 60days (1,000,000*18%*60/365) = N29,589.04
Amount due (to be repaid by bank) = Amount at maturity + earned interest - upfront interest
N1,000,000.00 + N29,589.04 - N179,506.85 = N850,082.19


In sum, principal invested + earned interest = N820,493.15k + N29,589.04 = N850,082.19

Caveat: I've not actually terminated any of my Tbills and this is only based on mathematical calcuations

I strongly feel this will not be correct.
If you are given your interest earned pro rata like you said above, then it's better to invest for instance 1 million at 18% and terminate after 91 days thereby earning 18% interest for 91 days INSTEAD of investing at sth like 13 - 15 % ( the usual rate for 91 days TB) from the outset.

Partnerbiz3:


I strongly feel this will not be correct.
If you are given your interest earned pro rata like you said above, then it's better to invest for instance 1 million at 18% and terminate after 91 days thereby earning 18% interest for 91 days INSTEAD of investing at sth like 13 - 15 % ( the usual rate for 91 days TB) from the outset.

Not sure i get you correctly. it's a case of pre-liquidation!

chinnyonwu:

Stanbic MMF is 50k

Not 50k but #5k

sgtponzihater1:

True anyways. But Stanbic, FBN, Zenith have been around for decades.

Even ARM: Asset Resource Management.

adegokekemi:

Not 50k but #5k

Its actually 50k
Source http://www.stanbicibtcassetmanagement.com/nigeriaassetmanagers/Other-Links/FAQs

adegokekemi:

Not 50k but #5k

Its actually 50k

http://www.stanbicibtcassetmanagement.com/nigeriaassetmanagers/Other-Links/FAQs

chinnyonwu:

Its actually 50k

http://www.stanbicibtcassetmanagement.com/nigeriaassetmanagers/Other-Links/FAQs

Been reduced to 5k.

sgtponzihater1:


Been reduced to 5k.

Ok then

cooldudeng:


Not sure i get you correctly. it's a case of pre-liquidation!

Note that tbills rate for 91days is around 13% -15%
If you liquidate your 365 days Tbills investment after 60days, the bank MAY have to re-calculate your investment with rate less than 90days i.e 13%. Remember that the less the number of days, the less the rates.

This is where mmf comes in. If you know you WILL need ur money anytime but no specific date yet, go for money market fund. You are free to liquidate your fund anytime after 30days without any charges.

Stanbic ibtc rate is same no matter the number of days you invested. Thats from my own calculation.

talktrue1:

Note that tbills rate for 91days is around 13% -15%
If you liquidate your 365 days Tbills investment after 60days, the bank MAY have to re-calculate your investment with rate less than 90days i.e 13%. Remember that the less the number of days, the less the rates.

This is where mmf comes in. If you know you WILL need ur money anytime but no specific date yet, go for money market fund. You are free to liquidate your fund anytime after 30days without any charges.

Stanbic ibtc rate is same no matter the number of days you invested. Thats from my own calculation.

True, 91 days are lower. However, didn't know banks had the liberty of recalculating rates! Thought they are only custodians since Tbills are technically "loans" to the government.

Would find out from my bankers how they actually treat next week.

Cheers

Really learning things I never knew here.

You guys forget the most important thing, which is rate fluctuation.
With Money market fund, you are exposed to rate fluctuations. Rates that was once high can crash so badly affecting your general roi, likewise it could also increase. ( look below at my screenshot with first bank money market).

But with Tbills you can lock in at a particular rate over the period of time you plan investing....
Ur rate will remain constant for that period of time you are investing.

Also With First bank money market, you get your interest paid Quarterly ( after every three months). With Tbills your interest rate is paid Upfront.

Also the charges in MMF is sightly higher than what you will get in Tbills

0.75% against 0.1% mostly in Tbills

For me I am more comfortable lending to the govt than to banks, I dunno how banks plan to repay investors in time of crisis, but with the Govt I know they can always print currencies!

Tbills over MMF anyday anytime!

talktrue1:

Note that tbills rate for 91days is around 13% -15%
If you liquidate your 365 days Tbills investment after 60days, the bank MAY have to re-calculate your investment with rate less than 90days i.e 13%. Remember that the less the number of days, the less the rates.

This is where mmf comes in. If you know you WILL need ur money anytime but no specific date yet, go for money market fund. You are free to liquidate your fund anytime after 30days without any charges.

Stanbic ibtc rate is same no matter the number of days you invested. Thats from my own calculation.

If I invest say 1 million in T bills for 365 days at say 18% and I terminate after 60 days, what's likely to be my penalty?

chukzyfcbb:
You guys forget the most important thing, which is rate fluctuation.
With Money market fund, you are exposed to rate fluctuations. Rates that was once high can crash so badly affecting your general roi, likewise it could also increase. ( look below at my screenshot with first bank money market).

But with Tbills you can lock in at a particular rate over the period of time you plan investing....
Ur rate will remain constant for that period of time you are investing.

Also With First bank money market, you get your interest paid Quarterly ( after every three months). With Tbills your interest rate is paid Upfront.

Also the charges in MMF is sightly higher than what you will get in Tbills

0.75% against 0.1% mostly in Tbills

For me I am more comfortable lending to the govt than to banks, I dunno how banks plan to repay investors in time of crisis, but with the Govt I know they can always print currencies!

Tbills over MMF anyday anytime!

If I invest say 1 million in T bills for 365 days at say 18% and I terminate after 60 days, what's likely to be my penalty?

Tbills is the BEST when you have money that you will NOT need till maturity. No doubt about that.

But assuming you plan to buy a property and you set standard. It can take a month or two or even longer period for you to get your choice. There's no fixed date. Instead of keeping the money in your account where the bank will be charging for sms, card maintenance , etc. you can chose to do money market fund and liquidate anytime you got your choice of property.

You can lock up a particular amount in tbills while u use mmf for money in case of eventualities.

There is no charge at stanbic mmf, to my knowledge. You can redeem any amount you want at anytime after the first 30 days.

This post is not to convince anyone but to educate people who are looking for opportunities. When I got information like this , I went to stanbic Ibtc like 3 times to make more enquiries and clear any doubt I have.

Partnerbiz3:


If I invest say 1 million in T bills for 365 days at say 18% and I terminate after 60 days, what's likely to be my penalty?

I haven't terminated before, so I don't know what the penalty charges would, however be rest assured that the charges would be on your interest and not capital.
.Go to the bank and they will compute it for you. Cheers

talktrue1:
Tbills is the BEST when you have money that you will NOT need till maturity. No doubt about that.

But assuming you plan to buy a property and you set standard. It can take a month or two or even longer period for you to get your choice. There's no fixed date. Instead of keeping the money in your account where the bank will be charging for sms, card maintenance , etc. you can chose to do money market fund and liquidate anytime you got your choice of property.

You can lock up a particular amount in tbills while u use mmf for money in case of eventualities.

There is no charge at stanbic mmf, to my knowledge. You can redeem any amount you want at anytime after the first 30 days.

This post is not to convince anyone but to educate people who are looking for opportunities. When I got information like this , I went to stanbic Ibtc like 3 times to make more enquiries and clear any doubt I have.

No investment house will invest on your behalf without a charge. How then do they feed and run the business.

Go and do your research well with stanbic ibtc. there must be a charge!

chukzyfcbb:

No investment house will invest on your behalf without a charge. How then do they feed and run the business.

Go and do your research well with stanbic ibtc. there must be a charge!

I have invested and withdrew all my money with stanbic leaving only the min. which is 50k. I did not notice any charges, likewise with firstbank. These banks invest in other instruments with your money not only Tbills.

Pesuzok:


I have invested and withdrew all my money with stanbic leaving only the min. which is 50k. I did not notice any charges, likewise with firstbank. These banks invest in other instruments with your money not only Tbills.

If you had maintained your stance with stanbic, then I may just have agreed but to say that with FBN MMF, you didn't get charged means you are not observant.

Look above at the screen shot.
it says 0.75% for Management fee.

I even posted the chart that shows the portfolio where the funds go?
Do u even monitor the Total Investment funds monthly (fund size) coz most of y'all dont?

Nna go and do your homework well.

if I hadn't invested in FBN MMF I would have kept quiet

chukzyfcbb:

If you had maintained your stance with stanbic, then I may just have agreed but to say that with FBN MMF, you didn't get charged means you are not observant.

Look above at the screen shot.
it says 0.75% for Management fee.

I even posted the chart that shows the portfolio where the funds go?
Do u even monitor the Total Investment funds monthly (fund size) coz most of y'all dont?

Nna go and do your homework well.

if I hadn't invested in FBN MMF I would have kept quiet

Please i want to find out, if i invest in Stanbic MMF, what are they supposed to give to me as a proof. I invested on friday and till today, nothing has been given to me as a proof. Please, is it right?

vitality22:

Please i want to find out, if i invest in Stanbic MMF, what are they supposed to give to me as a proof. I invested on friday and till today, nothing has been given to me as a proof. Please, is it right?

Ur evidence of payment and your online account

adegokekemi:

Ur evidence of payment and your online account

Thanks a million times, I finally got an SMS and an email from Stanbic last night

First question. 100k investment at 18% interest gets you 118k at maturity. So, if i decide to re-invest for the second year will i get 18% of the initial 100k or 18% of the 118k i'm starting the second year with?

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allandutch:
First question. 100k investment at 18% interest gets you 118k at maturity. So, if i decide to re-invest for the second year will i get 18% of the initial 100k or 18% of the 118k i'm starting the second year with?

100k? do thrive agric/farmcrowdy or transberg

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Can someone explain further?