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Fixed Deposit And Treasury Bill Investments From Abroad - Investment - Nairaland

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Zenith Bank Fixed Deposit Interest Rate / What Are Bonds And Treasury Bills? / Nigeria Treasury Bill/risk And Interest Rate Of Investing There. (2) (3) (4)

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Fixed Deposit And Treasury Bill Investments From Abroad by Bestluck: 8:53pm On Mar 02, 2013
Fellow Nlanders and Bankers in the house.

I have funds presently idle in my Current Account which I love to invest in either Fixed Deposit or Treasury Bills, to enable me enjoy higher interest.

As I am presently out of the country, please, how do I go about this without my physical presence in the Bank?

Your candid advice is needed please.
Re: Fixed Deposit And Treasury Bill Investments From Abroad by a1solution: 7:45am On Mar 03, 2013
For t/bill contact a trusted stock broker. For Bank email ur bank headquater.

1 Like

Re: Fixed Deposit And Treasury Bill Investments From Abroad by afolayangs(m): 11:37am On Mar 03, 2013
i fink TB is ok. But make sure u use non COT acct like savings

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Re: Fixed Deposit And Treasury Bill Investments From Abroad by Reyus: 2:46pm On Mar 03, 2013
afolayangs: i fink TB is ok. But make sure u use non COT acct like savings

I think Zenith bank may still charge you COT even if you use savings account.
They charged me COT for making a interbank transfer through my savings account but GT bank does not take COT for interbank transfers from savings account

2 Likes

Re: Fixed Deposit And Treasury Bill Investments From Abroad by ochukoccna: 11:45am On Mar 04, 2013
You should have sorted this before your journey especially as you might need another bank account if your bank doesn't give great deposit rates
Look to the previous replies too and follow your intuition.
Re: Fixed Deposit And Treasury Bill Investments From Abroad by hrmgr: 1:53pm On Mar 04, 2013
well there are good finance houses that will give you great interest in fixed deposit up to 15% depending on the tenor.
Re: Fixed Deposit And Treasury Bill Investments From Abroad by Bestluck: 5:26pm On Mar 05, 2013
@Ochukoccna..There was no way I could have sorted out all issues before I left.I was just inspired by what I read in Nairaland recently about Investments in Treasury Bills and I belief I will get higher interest rates by using part of the funds I m having in my current account to buy Treasury Bills or placed on Fixed Deposit instead of allowing tbe funds to be idle.
My sincere appreciation to you and everyone that responded to my request. Big tnx.
Re: Fixed Deposit And Treasury Bill Investments From Abroad by Nobody: 7:16am On Mar 19, 2013
Pls can someone please enlighten a brother lucidly on wat treasury bills are? Pls I really need ur help, tnx in advance sire.
Re: Fixed Deposit And Treasury Bill Investments From Abroad by euphoria: 2:36pm On Mar 23, 2013
Reyus:

I think Zenith bank may still charge you COT even if you use savings account.
They charged me COT for making a interbank transfer through my savings account but GT bank does not take COT for interbank transfers from savings account

With GTBank, you can't do interbank transfer from a Savings account.
Re: Fixed Deposit And Treasury Bill Investments From Abroad by dagr8(m): 9:57am On Mar 29, 2013
Raymondenyi: Pls can someone please enlighten a brother lucidly on wat treasury bills are? Pls I really need ur help, tnx in advance sire.
[size=15pt]Try reading through dis thread

https://www.nairaland.com/878880/treasury-bills-nigeria [/size]
Re: Fixed Deposit And Treasury Bill Investments From Abroad by Nobody: 5:56pm On Mar 29, 2013
dagr8:
[size=15pt]Try reading through dis thread

https://www.nairaland.com/878880/treasury-bills-nigeria [/size]

Tried it, noting, could not understand nothing
Re: Fixed Deposit And Treasury Bill Investments From Abroad by dagr8(m): 7:30pm On Mar 29, 2013
Raymondenyi:
Tried it, noting, could not understand nothing
[size=15pt]LOL...


So what exactly do u want to know? May be U should ask ur questions bit by bit, and if I can answer them, i will and if not, i refer u to my OGAs at the top[/size]

2 Likes

Re: Fixed Deposit And Treasury Bill Investments From Abroad by Nobody: 7:26am On Mar 31, 2013
What are treasury bills?
Re: Fixed Deposit And Treasury Bill Investments From Abroad by dagr8(m): 9:01pm On Mar 31, 2013
Raymondenyi: What are treasury bills?

[size=15pt]Treasury Bills(TB), in Nigeria, are financial instruments issued by the FGN through the CBN to investors. FGN borrow money from you(the investor) to mange liquidity. You on the other hand, lend the money to FGN as an investment, because they have to pay you back the money with interest after a stipulated time; maximum of 364 days.

Just like when you go to the bank to borrow money, you are expected to pay back to the bank with interest but in this case u are d one doing the lending. The FGN is indebted to you.
The good thing about the investment is that you have zero risk of losing your money. Although it is a low yield investment.
In investment the lower ROI, the lower the risk and the higher the yield the higher the risk.

I tried to break it down in my above explanation...
You can add these

NIGERIAN TREASURY BILLS
These are discount able instruments used by the Central Bank of Nigeria (CBN) to manage liquidity in the system, usually on short-term basis. In recent times, the market has witnessed a tremendous higher yield in the Nigerian Treasury Bills. The tenors are short with a maximum of 364-days with yields far higher in comparison to what the money market offers:

Features of the Nigerian Treasury Bills
 Issuer is the Federal Government through the Central Bank of Nigeria (CBN).
 Typically, Nigerian Treasury Bills are zero-risk and rediscount-able through licensed Money Market Dealers. The Rates are offered on a discount basis and are often referred to as risk-free rates.
 Primary Issue of 91 days and 182 days are offered bi-monthly, while 364 days bills are offered monthly.
 The investor earns upfront interest, hence, invests discounted value.
 They are used by CBN as an instrument for managing liquidity through the Open Market Operations (OMO).
 They are traded actively in the secondary market amongst Banks and Discount houses on an outright or repo basis.
 Liquidity Status: The Nigerian Treasury Bills qualify for liquidity ratio computation.
 It also has an active two-way quote secondary market which provides additional liquidity for all the primary auctions.
 Tenors are short and range from 91, 182 and 364 days.
 Institutions or individuals can borrow using Nigerian Treasury Bills as collateral.
 You can invest as low as N100,000.00 in the Nigerian Treasury Bills. [/size]
Re: Fixed Deposit And Treasury Bill Investments From Abroad by Nobody: 11:30pm On Mar 31, 2013
Wow!!! U'v done a very good job, more than enof, am very much interested, how do I go about it. Thanx 1ce again
Re: Fixed Deposit And Treasury Bill Investments From Abroad by Nobody: 11:32pm On Mar 31, 2013
And wat is dia interest rate like

1 Like

Re: Fixed Deposit And Treasury Bill Investments From Abroad by Spida(m): 11:33am On Apr 01, 2013
Nice one .....
Re: Fixed Deposit And Treasury Bill Investments From Abroad by dagr8(m): 11:28pm On Apr 01, 2013
Raymondenyi: Wow!!! U'v done a very good job, more than enof, am very much interested, how do I go about it. Thanx 1ce again
[size=15pt] Visit any bank and tell them you want to invest in TB...GTbank is a good option...there was an auction on 27 march 2013.

Auction usually takes place bi-monthly i.e twice every month, on Wednesdays. Your banker should give u details on this. [/size]
Re: Fixed Deposit And Treasury Bill Investments From Abroad by princeuk21(m): 12:55am On Apr 02, 2013
If I invest a hundred thousand naira, what will be my profit?
Re: Fixed Deposit And Treasury Bill Investments From Abroad by Chekitaut: 9:00am On Apr 02, 2013
What will be interest on N6m, when i discuss with GTBank CC agent i was told CBN determine the interest rate and from look of thing it will not be stable...any one with idea of interest rate?
Re: Fixed Deposit And Treasury Bill Investments From Abroad by dagr8(m): 2:10pm On Apr 02, 2013
Chekitaut: What will be interest on N6m, when i discuss with GTBank CC agent i was told CBN determine the interest rate and from look of thing it will not be stable...any one with idea of interest rate?

[size=15pt]Yes the interest rates are not stable.
Before auction, there will be a notice. This notice is published on CBN website (www.cenbank.org) and it is also advertised in the major newspapers, typically a week ahead of the auctions.
Primary auctions holds twice every month on Wednesdays, while the issuance and settlement is effected the subsequent Thursday.

The Auction is conducted through a competitive bid( all investors including YOU will bid for it through a primary dealer), where you have to specify the price,in terms of percentage yield that you are willing to pay for the T-bill. For instance u can make your bid to be 11%. Therefore you may or may not be allotted the securities after the auction, depending on how good your price bid is relative to the prices submitted by all the other competitive bidders. A lower yield represents a more competitive bid as the bidder is indicating that he/she will accept a lower interest rate.

The highest accepted yield of successful competitive bids submitted at the auction is equivalent to the discount rate.
From my example above, if your bid was 11% and at the end of d day the highest accepted bid was 12%....then u are lucky cos you will get the TB at 12% but if the highest accepted yield be 10% then you will not be allotted the TB. In other words, you are not forced to take a % yield lower than your expectation.


The stop rate at the auction on Wednesday 27/03/2013 was as follows

91 DAYS --------11%


182 DAYS -------11.15%
the one before this was
91 DAYS --------10.45%

182 DAYS--------10.65%

364 DAYS ----------10.76%
[/size]

1 Like

Re: Fixed Deposit And Treasury Bill Investments From Abroad by Chekitaut: 7:24pm On Apr 02, 2013
dagr8:

[size=15pt]Yes the interest rates are not stable.
Before auction, there will be a notice. This notice is published on CBN website (www.cenbank.org) and it is also advertised in the major newspapers, typically a week ahead of the auctions.
Primary auctions holds twice every month on Wednesdays, while the issuance and settlement is effected the subsequent Thursday.

The Auction is conducted through a competitive bid( all investors including YOU will bid for it through a primary dealer), where you have to specify the price,in terms of percentage yield that you are willing to pay for the T-bill. For instance u can make your bid to be 11%. Therefore you may or may not be allotted the securities after the auction, depending on how good your price bid is relative to the prices submitted by all the other competitive bidders. A lower yield represents a more competitive bid as the bidder is indicating that he/she will accept a lower interest rate.

The highest accepted yield of successful competitive bids submitted at the auction is equivalent to the discount rate.
From my example above, if your bid was 11% and at the end of d day the highest accepted bid was 12%....then u are lucky cos you will get the TB at 12% but if the highest accepted yield be 10% then you will not be allotted the TB. In other words, you are not forced to take a % yield lower than your expectation.


The stop rate at the auction on Wednesday 27/03/2013 was as follows

91 DAYS --------11%


182 DAYS -------11.15%
the one before this was
91 DAYS --------10.45%

182 DAYS--------10.65%

364 DAYS ----------10.76%
[/size]
what is interesting with your information is the security accept of it but the interest is poor...If the bill thing is with better interest rate 100,000naira from 50,000,000 citizen of this nation investing it on Oil and gas is able to build us the biggest refinery and we make good profit from it...I think CBN can still do better about the interest rate...to me personally is too low.
Re: Fixed Deposit And Treasury Bill Investments From Abroad by dagr8(m): 8:37pm On Apr 02, 2013
Chekitaut: what is interesting with your information is the security accept of it but the interest is poor...If the bill thing is with better interest rate 100,000naira from 50,000,000 citizen of this nation investing it on Oil and gas is able to build us the biggest refinery and we make good profit from it...I think CBN can still do better about the interest rate...to me personally is too low.

[size=15pt]LOL...OGA is not my information o...we are talking TBills versus fixed deposit.

Of course you choose what u want to invest ur money in...no one is forcing you...if you av better options you can always take them...
We got people who are stranded as to what they can use their money for...and they ended up putting the money in fixed deposit...it is obvious that TB is better option than fixed deposit...and the reason why i came to the thread is because it is talking about fixed deposit and Tbills...and Raymondenyi caused me to start the story... [/size]
Re: Fixed Deposit And Treasury Bill Investments From Abroad by Chekitaut: 9:46pm On Apr 02, 2013
dagr8:

[size=15pt]LOL...OGA is not my information o...we are talking TBills versus fixed deposit.

Of course you choose what u want to invest ur money in...no one is forcing you...if you av better options you can always take them...
We got people who are stranded as to what they can use their money for...and they ended up putting the money in fixed deposit...it is obvious that TB is better option than fixed deposit...and the reason why i came to the thread is because it is talking about fixed deposit and Tbills...and Raymondenyi caused me to start the story... [/size]
Am not against you my brother you are really doing a good job, i must confess your time, money for subscription, energy applied, thumbs up.

It is painful to know that the country is not ready to help those that are lesser privilege, something i ask can anthing good comes out from this country? Banks collect 30% on loan facilities, huge collateral, e.t.c, give less than 10% on Fixed deposit. All these are element of nation that can never develop. Indian have the largest refinery in the world owned by a family in that nation and the family did not use this to make the nation suffer for his negligence.

before the ban of imported cement it was import into this nation at a port landing cost of N680/ton(2Bags) but we buy at an outrageous prices, kerosine(DPK) port landing cost is less than N38/ltr, we buy at 130/ltr. many multi-national sells shares but today shares still strive to stand confidently.

From all these monetary policy in Nigeria is not meant for the less privileged.

TB is good but FG should at least make the people enjoy more dividend of Democracy. I summit.
Re: Fixed Deposit And Treasury Bill Investments From Abroad by ayztech(f): 8:57am On Apr 28, 2013
Chekitaut: what is interesting with your information ting it on Oil and gas is able to build us the biggest refinery and we make good profit from it...I think CBN can still do better about the interest rate...to me personally is too low.

my broda dis thing dey pain plenty people o...it's an unfortunate situation but something will soon give to realign all these.

@dagr8 i enjoy your expose; do keep it coming pls. many thanks
Re: Fixed Deposit And Treasury Bill Investments From Abroad by ngnetbiz: 1:55pm On Apr 28, 2013
dagr8:

[size=15pt]Yes the interest rates are not stable.
Before auction, there will be a notice. This notice is published on CBN website (www.cenbank.org) and it is also advertised in the major newspapers, typically a week ahead of the auctions.
Primary auctions holds twice every month on Wednesdays, while the issuance and settlement is effected the subsequent Thursday.

The Auction is conducted through a competitive bid( all investors including YOU will bid for it through a primary dealer), where you have to specify the price,in terms of percentage yield that you are willing to pay for the T-bill. For instance u can make your bid to be 11%. Therefore you may or may not be allotted the securities after the auction, depending on how good your price bid is relative to the prices submitted by all the other competitive bidders. A lower yield represents a more competitive bid as the bidder is indicating that he/she will accept a lower interest rate.

The highest accepted yield of successful competitive bids submitted at the auction is equivalent to the discount rate.
From my example above, if your bid was 11% and at the end of d day the highest accepted bid was 12%....then u are lucky cos you will get the TB at 12% but if the highest accepted yield be 10% then you will not be allotted the TB. In other words, you are not forced to take a % yield lower than your expectation.


The stop rate at the auction on Wednesday 27/03/2013 was as follows

91 DAYS --------11%


182 DAYS -------11.15%
the one before this was
91 DAYS --------10.45%

182 DAYS--------10.65%

364 DAYS ----------10.76%
[/size]



@dagr8,you really break this down here,but you mentioned that is the bid is 10percent,the bidder will end up not getting anything,so what now happen to the bidder money for the period of 91days,180,365 days he or she might have invested,or will the money be returned to him immediately before the bid if he or she lost out.
Re: Fixed Deposit And Treasury Bill Investments From Abroad by dagr8(m): 6:58pm On Apr 28, 2013
ngnetbiz:



@dagr8,you really break this down here,but you mentioned that is the bid is 10percent,the bidder will end up not getting anything,so what now happen to the bidder money for the period of 91days,180,365 days he or she might have invested,or will the money be returned to him immediately before the bid if he or she lost out.
[size=15pt] The money will be returned if the investor misses out in the bid [/size]
Re: Fixed Deposit And Treasury Bill Investments From Abroad by Nobody: 12:13am On Apr 29, 2013
..ok..dagr8...thumbs up 4ur update here..i have 1million to spare for the treasury bills stuff for 3 months ..what percentage do u think i can hit..and where do i visit to process dis asap..any particular days too?..tanx again..
Re: Fixed Deposit And Treasury Bill Investments From Abroad by dagr8(m): 4:05am On Apr 29, 2013
chris.a:
..ok..dagr8...thumbs up 4ur update here..i have 1million to spare for the treasury bills stuff for 3 months ..what percentage do u think i can hit..and where do i visit to process dis asap..any particular days too?..tanx again..
[size=15pt] Visit your bank and discuss with them about TBills [/size]
Re: Fixed Deposit And Treasury Bill Investments From Abroad by yogun(f): 5:13am On Apr 29, 2013
euphoria:

With GTBank, you can't do interbank transfer from a Savings account.

Who says?

U sure can transfer moni to gtbank n oda banks from your savings acct. U need to be physically present, das all
Re: Fixed Deposit And Treasury Bill Investments From Abroad by question(m): 7:05am On Apr 29, 2013
euphoria:

With GTBank, you can't do interbank transfer from a Savings account.

Click on the link below and click the "features" tab.

http://www.gtbank.com/personalbanking/ways-to-bank/internetbanking#features

yogun:

Who says?

U sure can transfer moni to gtbank n oda banks from your savings acct. U need to be physically present, das all

Do not give wrong info. You can do it online. You do not have to be physically present.

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