Okay T.bills seems to be the better investment; but how exactly do you monitor treasury bills?

Is it a kind of passive investment or do you monitor it like the stock market?

Thanks in advance...

narrowpathy:


I knew I'd see you on this tread

Hehehehehe

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....

i don't understand, so if I am investing 1000000 for 90 days ,how much would I expect back

Treasury bills please. If you have idle funds, even more better for you to invest in mutual funds.

blank:


The greater the risks the greater the returns. Are you a risk taker?

Yes, I take calculated risks. An out-of-this-World interest rate that puts my capital in jeopardy is a NO NO.
I love my capital more than the interest I'm yet to earn.

Investnow2017:
Please I would like your candid opinion on this. Which will yield more in the medium term. Fixed deposit or Treasury Bills?

I'll like to speak with you in private... here is my email
doctoruche3@gmail.com
Better still, drop yours and I'll get back to u...

do4luv14:


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

If you really want to invest contact me
doctoruche3@gmail.com

DrUche3:

If you really want to invest contact me
doctoruche3@gmail.com

ok will keep in mind

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 like your spirit boss!
Let's talk...
doctoruche3@gmail

Carmal90:


Ur calculation is wrong 400k can never be 13% of 10 million now

13 percent is per annum, not per 90 days pls. You have to multiply your result by 0.25

Built2last:


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

We offer more than that... call 08174599849 or mail info@stmfb.com

jamesbridget13:
can u imagine! Na only them like better thing

Not really, the main reason is that when a customer book for Tbills the money is moped to the head office and it will no longer be in the BO CABA. So some how they are loosing the money to their head office unlike the fixed deposit that reflect at the BO CABA.

JohnXcel:
Okay T.bills seems to be the better investment; but how exactly do you monitor treasury bills?

Is it a kind of passive investment or do you monitor it like the stock market?

Thanks in advance...

You can monitor the price on the secondary market, but there is no point though. Fluctuation in prices does not affect your initial deposit or rates given. You get exactly what was given to you at the time you should get it.

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

UBA from experience, they are good.

DrUche3:

I like your spirit boss!
Let's talk...
doctoruche3@gmail

Where people of good interest gather, bad eggs will always find a way to come in.

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

Thanks I love this breakdown. It killed it. Gbam

investing ideas

Exectine:



Where people of good interest gather, bad eggs will always find a way to come in.

You're wrong sir!
I will prove that a thousand times if given the opportunity... I'm a core investor and I certainly do understand what it means to invest so, "never crucify a man until you hear from him!"

DrUche3:

You're wrong sir!
I will prove that a thousand times if given the opportunity... I'm a core investor and I certainly do understand what it means to invest so, "never crucify a man until you hear from him!"

If you are truly sincere, y go private on something that ought to benefit the public and site visitors?

My question is... What if you made bid which eventually was higher than the CBN stop rate?
2: is this bidding rate agreement different from derivatives? Since changes in rate won't affect your initial investment rate!

Want to learn.
Cc feelamong

davide470:
You can monitor the price on the secondary market, but there is no point though. Fluctuation in prices does not affect your initial deposit or rates given. You get exactly what was given to you at the time you should get it.

Thank you for explaining.
I have two questions:
(I) What's the difference BTW the primary and secondary market?
(II) What factors cause fluctuations in prices?

*Treasury bills VS Fixed deposit

1. TB Interest is payable same day you invest while FD is at maturity.

2. In TB you don't pay withholding tax on your interest while FD takes10% withholding tax.

3. TB Rate is largely dependent on amount in circulation,through bidding,i. e if govt wants to mop up Naira In the system,a higher rate and can go as high as18% while FD depends on your negotiation with your bank but within CBN rate guides which is presently 14%

4. In TB you CANNOT at any point before maturity request for your investment partly or total while FD can be terminated prematurely or partly even after a day! You only get charged 25% of the accrued interest till that particular date.

5. TB is guaranteed as long as the country existed cos it's backed by FG while FD may go down with a bank if it is distressed.

6. TB is strictly 91,182 or 364 days tenure while FD is more flexible, you state your own days.

Interesting, just learnt something today. I am good at math, but I seriously hate all these financial calculations, especially economics. It just annoying

CloudResident:
*Treasury bills VS Fixed deposit

1. TB Interest is payable same day you invest while FD is at maturity.

2. In TB you don't pay withholding tax on your interest while FD takes10% withholding tax.

3. TB Rate is largely dependent on amount in circulation,through bidding,i. e if govt wants to mop up Naira In the system,a higher rate and can go as high as18% while FD depends on your negotiation with your bank but within CBN rate guides which is presently 14%

4. In TB you CANNOT at any point before maturity request for your investment partly or total while FD can be terminated prematurely or partly even after a day! You only get charged 25% of the accrued interest till that particular date.

5. TB is guaranteed as long as the country existed cos it's backed by FG while FD may go down with a bank if it is distressed.

6. TB is strictly 91,182 or 364 days tenure while FD is more flexible, you state your own days.

Nice on bro but here is a little addendum :

1. Interest on FD can also be paid upfront just as Tbills. But d rate might be a bit lower than that of back-end (at maturity)

3. Rate on FD is subject to MPR but not limited to it. Banks do offer much more than 14 on bigger volume. D rate at which banks create risk assets (loans) also determine the rate they raise liabilities (deposits). I. E. If Bank A can create risk asset at 30%, it should be able to raise liabilities at 20% and make 10% margin.

4. You can also preterminate your TB investments, it is called rediscounting. U may suffer loss on it depending on the rediscounting rate. Also, charges on premature termination of FD vary from Bank to Bank. Some Banks charge as low as 10%.

Regards

Wats the lowest amount of money one can use in that Tbill. Fixed deposit is almost like saving account in terms of interest becoz the long way they calculate the interest will jst finish the money and they dont do the normal mmm style of calculating interest

Treasury bills are better investments than bank deposits. You won't pay capital gains tax and your investment is guaranteed by the government. Also, in Nigeria, Treasury bill rates are higher than time deposit rates (which shouldn't be the case). So, it's a no brainer: pick Treasury bills ahead of fixed deposits.

JohnXcel:
Thank you for explaining.
I have two questions:
(I) What's the difference BTW the primary and secondary market?
(II) What factors cause fluctuations in prices?

1. Primary market, in this case is the auction done forthnightly by the CBN, and at the end of the auction, you get your bid rate and calculate how much you will receive.

Secondary market is basically for traders, fixed income dealers and most of them do proprietary trading (trading for their firm/bank)

2. Well, factors like: Interest rate, inflation rate, CBN coming up with a policy, the state of the stock market and other macro-economic factors.

jamesbridget13:
I love to investors

Yeah. It is good to love to investors

4. In TB you CANNOT at any point before maturity request for your investment partly or total while FD can be terminated prematurely or partly even after a day! You only get charged 25% of the accrued interest till that particular date.


Dats not totally true. I av T-bills with first bank and i av terminated some prematurely a couple of times.
The issue is it will b rediscounted and a part of your capital might be taken- depending on d period you are terminating it though.
Its always advisable to terminate only at maturity sha.

Just use only 1million naira and buy a good cryptocurrency and leave for one year... Thank me later