ernie4life:



I won't give any particular name but will recommend you go to securities and Exchange commission website sec.gov.ng check out the list of asset management companies, reach out to some of them to know there rates‎

OK thanks

ernie4life:



I won't give any particular name but will recommend you go to securities and Exchange commission website sec.gov.ng check out the list of asset management companies, reach out to some of them to know there rates‎

this ernie 4 life dem swear for u ...this strictly tb tread ur plan wouldn't sell ur just too stubborn cant u just open ur tread abi u be guy man hell bent on getting maga for ur mushroom investment house this the second time we are warning u till we banned u

Hahaha

Alikote:
this ernie 4 life dem swear for u ...this strictly tb tread ur  plan wouldn't sell ur just too stubborn cant u just open ur tread abi u be guy man hell bent on getting maga for ur mushroom investment house this the second time we are warning u till we banned u

your write up tells a lot about your personality, that being said am not trying to derail the tread neither am I marketing any of your so called mushroom investment house that was why I refused to mention any particular name I was only trying to answer the questions asked by funkymeky 
‎

ernie4life:
Hahaha

your write up tells a lot about your personality, that being said am not trying to derail the tread neither am I marketing any of your so called mushroom investment house that was why I refused to mention any particular name I was only trying to answer the questions asked by funkymeky 
‎

I argued with you (ernie4life) on this issue the other time but later went to make my enquiries. I got 8% from stabicibtc Funds management (guaranteed fund) for 3 months while TB is still around 6% for that 3 months but like I said b4 they require utility bills, means of Identification and a passport and filling the form even when I have an account with their bank whereas in buying TB all u need to do in your bank is to write a letter and mayb fill the form.

freeman67:


I argued with you (ernie4life) on this issue the other time but later went to make my enquiries. I got 8% from stabicibtc Funds management (guaranteed fund) for 3 months while TB is still around 6% for that 3 months but like I said b4 they require utility bills, means of Identification and a passport and filling the form even when I  have an account with their bank whereas in buying TB all u need to do in your bank is to write a letter and mayb fill the form.

Thank you for this post,
 we all are investors looking for higher interest with minimal risk. Am not here to market any investment firm(am not a staff of Stanbic ibtc funds management) , am here to learn and look for better rates.
The issue of there requirements to open there account is a personal thing, but if you ask me for an additional 2% guaranteed I will gladly provide all that. It's all about choice. There where days when Tbills for 3months was as high as 9.5% during those days Tbills was the boss but now.......‎

Screen shot attached. Read this few days ago on vanguard. Please, whats the implication for treasury bills?

unite4real:


I think you need to advice properly and with a clean line of thoughts. First of all, you cannot be comparing a one year FD to doing a 3 months TB and uping it to one year. Why dont you compare a one year FD to a straight one year TB or a 3 months FD to a 3 months TB. Besides, i have not seen that careless bank that will give anyone 9% P/A interest on FD. The highest you can get from the most generous bank is around 6.5% presently. The last auction for TB gave a rate of over 9%. so what are you talking about. There is no where in this world you can compare FD to TB. If you must know, your bankers take your money that you invested for FD and buy TB with it and the difference is their profit. By doing TB, you scoop all your interest. Remember even when you do FD, your interest is taxed and you get it at the end of maturity. But with TB, you get a discounted interest which means that your true yield is more than the interest you got. Dont even bother comparing the 2 of them abeg so that funkymeky is not miss led

thanks alot.... But u didnt say how TB is been calculated.. As in the interest

ernie4life:



Both Tbills and FD are low risk investment, with the current trends right now I believe FD will give you something higher than T bills. 
 Let's say you do FD for a year at 9%(net with holding tax) your interest on 1m will be 90k at the end of the year. 
Now the question on the rates you see, bear in mind all interest rates are per annum meaning if a bank or Tbills offers you 5% 1m for 3months, the calculation is first to get 5% of 1m then divide by 4 in order to pro relate it 3months since 12months makes one year.‎

thanks a million for ur reply but i tot dat in TB u buy at a discounted rate (eg 5%) and sell bk to d government at a normal rate.. What i mean is dis if d rate for 90 days is 5% and u want to invest with 1m .. U will buy at 950000 and wen d maturity period is due u now sell back to d government at 1m making u a profit of 50000 for dat 3months.. Its only in FD dat d profit is divided by 12 or 4 as d case may be. In TB i dont think u divid ur returns by 12 or 4. Thanks anyways

Treasury bills pays better than fixed deposit. The interest is higher. I will advice you to go for T-bills and stop stressing yourself with these calculations. All interest rates are per-annum then prorated into either 30days 91days 182 or 365, depending on which you prefer.

funkymeky:

thanks a million for ur reply but i tot dat in TB u buy at a discounted rate (eg 5%) and sell bk to d government at a normal rate.. What i mean is dis if d rate for 90 days is 5% and u want to invest with 1m .. U will buy at 950000 and wen d maturity period is due u now sell back to d government at 1m making u a profit of 50000 for dat 3months.. Its only in FD dat d profit is divided by 12 or 4 as d case may be. In TB i dont think u divid ur returns by 12 or 4. Thanks anyways

You are perfectly correct, that is how TB works but guys in Nigeria think otherwise

exclusiveoloori:
Treasury bills pays better than fixed deposit. The interest is higher. I will advice you to go for T-bills and stop stressing yourself with these calculations. All interest rates are per-annum then prorated into either 30days 91days 182 or 365, depending on which you prefer.

Whats the current rate for t-bills?

Naijainvestor:


You are perfectly correct, that is how TB works but guys in Nigeria think otherwise

thanks man....but Why did u say dat guys in nigeria think otherwise??

funkymeky:

thanks man....but Why did u say dat guys in nigeria think otherwise??

They think that you invest the principal amount and receive your interest upfront but in actual fact you invest the discounted amount but receive the principal upon maturity

when next is the Auction date ?

Tritri:
when next is the Auction date ?

Should be 06-April-2016.
Though I am not very sure.

Short term T.bills vs Short term Fixed deposit
***************************************
SHORT TERM T.BILLS FOR 91days @ 5.99%
Invested 1milllion naira @ 91days for 5.99%
Discounted payment = 940,100


To get true yield= 1m-940,100/940,100 * 100
= 59,900/940,100 * 100 ; = 6.37%


True yield = 6.37%

Your interest would be 1m * 6.37%
= #63,716(per annum)


To get 90days
#63,716/365days (to get for 1day)
= #174.65naira(per day)

90days = 174.65 *90 = #15,893naira
****************************************
SHORT TERM F.DEPOSIT FOR 91days @ 6.5%
Invested 1million naira @ 91days @ 6.5%
1m *6.5%; = 65,000
Interest = 65,000(per annum)
10% witholding tax, ie 6500


Thus Main Interest(net profit)= 65,000- 6500
= 58,500naira (remember this is per annum)


To get for 90days, calculate it like I did above &
Yur interest wud be = #14,584naira
****************************************
DEDUCTIONS


As you can see, even a 5.99% T.bills discounted rate pays you better than a 6.5% f.deposit @ same 91days. So for those arguing(ernie 4 life) saying f.deposit is better simply because you heard a higher rate, there you have it. #
#NB: 6.5% is the highest rate for f.deposits for now and very rare to get!!

Chukzyfcb:
Short term T.bills vs Short term Fixed deposit
***************************************
SHORT TERM T.BILLS FOR 91days @ 5.99%
Invested 1milllion naira @ 91days for 5.99%
Discounted payment = 940,100


To get true yield= 1m-940,100/940,100 * 100
= 59,900/940,100 * 100 ; = 6.37%


True yield = 6.37%

Your interest would be 1m * 6.37%
= #63,716(per annum)


To get 90days
#63,716/365days (to get for 1day)
= #174.65naira(per day)

90days = 174.65 *90 = #15,893naira
****************************************
SHORT TERM F.DEPOSIT FOR 91days @ 6.5%
Invested 1million naira @ 91days @ 6.5%
1m *6.5%; = 65,000
Interest = 65,000(per annum)
10% witholding tax, ie 6500


Thus Main Interest(net profit)= 65,000- 6500
= 58,500naira (remember this is per annum)


To get for 90days, calculate it like I did above &
Yur interest wud be = #14,584naira
****************************************
DEDUCTIONS


As you can see, even a 5.99% T.bills discounted rate pays you better than a 6.5% f.deposit @ same 91days. So for those arguing(ernie 4 life) saying f.deposit is better simply because you heard a higher rate, there you have it. #
#NB: 6.5% is the highest rate for f.deposits for now and very rare to get!!

I like your calculations, very detailed, the only point you've got wrong is that you can get FD for 1m at 7% net ( no witholding tax) for 90days, so tell me how Tbills is better?

Chukzyfcb:
Short term T.bills vs Short term Fixed deposit
***************************************
SHORT TERM T.BILLS FOR 91days @ 5.99%
Invested 1milllion naira @ 91days for 5.99%
Discounted payment = 940,100


To get true yield= 1m-940,100/940,100 * 100
= 59,900/940,100 * 100 ; = 6.37%


True yield = 6.37%

Your interest would be 1m * 6.37%
= #63,716(per annum)


To get 90days
#63,716/365days (to get for 1day)
= #174.65naira(per day)

90days = 174.65 *90 = #15,893naira
****************************************
SHORT TERM F.DEPOSIT FOR 91days @ 6.5%
Invested 1million naira @ 91days @ 6.5%
1m *6.5%; = 65,000
Interest = 65,000(per annum)
10% witholding tax, ie 6500


Thus Main Interest(net profit)= 65,000- 6500
= 58,500naira (remember this is per annum)


To get for 90days, calculate it like I did above &
Yur interest wud be = #14,584naira
****************************************
DEDUCTIONS


As you can see, even a 5.99% T.bills discounted rate pays you better than a 6.5% f.deposit @ same 91days. So for those arguing(ernie 4 life) saying f.deposit is better simply because you heard a higher rate, there you have it. #
#NB: 6.5% is the highest rate for f.deposits for now and very rare to get!!

I think your calculation for T-bill is faulty.

A Treasury bill (or T-Bill) is a short-term government debt security, which yields no interest. Rather, it is issued at a discount on the redemption price.
Basically, the Federal Government issues treasury bills at discounted prices for maturity periods between 91 and 364 days. At the end the selected maturity period, the government buys the bills back at full price. For example, let’s say you buy a 182-day ₦200,000 treasury bill at a discounted rate of ₦180,000. The Federal Government of Nigeria writes an IOU for ₦200,000 and agrees to pay back in 182 days. You don’t get any monthly interest payments, rather you make your money back when the bond is purchased back from you at full price. In this case the T-Bill pays 11% interest rate (₦20,000/₦180,000 = 11%) over the 182-day period.

Ryder306:



I think your calculation for T-bill is faulty.

A Treasury bill (or T-Bill) is a short-term government debt security, which yields no interest. Rather, it is issued at a discount on the redemption price.
Basically, the Federal Government issues treasury bills at discounted prices for maturity periods between 91 and 364 days. At the end the selected maturity period, the government buys the bills back at full price. For example, let’s say you buy a 182-day ₦200,000 treasury bill at a discounted rate of ₦180,000. The Federal Government of Nigeria writes an IOU for ₦200,000 and agrees to pay back in 182 days. You don’t get any monthly interest payments, rather you make your money back when the bond is purchased back from you at full price. In this case the T-Bill pays 11% interest rate (₦20,000/₦180,000 = 11%) over the 182-day period.

The calculations that chukzyfcb gave was in line with CBN calculation. Let me ask you, how do you think the true yield published by CBN and DMO are calculated? I need you to explain if the CBN published true yield is faulty too.

unite4real:


The calculations that chukzyfcb gave was in line with CBN calculation. Let me ask you, how do you think the true yield published by CBN and DMO are calculated? I need you to explain if the CBN published true yield is faulty too.

You do the explanation so i can learn more

Chukzyfcb:
Short term T.bills vs Short term Fixed deposit
***************************************
SHORT TERM T.BILLS FOR 91days @ 5.99%
Invested 1milllion naira @ 91days for 5.99%
Discounted payment = 940,100


To get true yield= 1m-940,100/940,100 * 100
= 59,900/940,100 * 100 ; = 6.37%


True yield = 6.37%

Your interest would be 1m * 6.37%
= #63,716(per annum)


To get 90days
#63,716/365days (to get for 1day)
= #174.65naira(per day)

90days = 174.65 *90 = #15,893naira
****************************************
SHORT TERM F.DEPOSIT FOR 91days @ 6.5%
Invested 1million naira @ 91days @ 6.5%
1m *6.5%; = 65,000
Interest = 65,000(per annum)
10% witholding tax, ie 6500


Thus Main Interest(net profit)= 65,000- 6500
= 58,500naira (remember this is per annum)


To get for 90days, calculate it like I did above &
Yur interest wud be = #14,584naira
****************************************
DEDUCTIONS


As you can see, even a 5.99% T.bills discounted rate pays you better than a 6.5% f.deposit @ same 91days. So for those arguing(ernie 4 life) saying f.deposit is better simply because you heard a higher rate, there you have it. #
#NB: 6.5% is the highest rate for f.deposits for now and very rare to get!!

You are so on point

Ryder306:



You do the explanation so i can learn more

My point is the auction guys (CBN), publish true yield which makes that calculation correct. Here is a link which you can relate with for analysis.

http://www.cenbank.org/rates/GovtSecurities.asp

Ryder306:



You do the explanation so i can learn more

My point is the auction guys (CBN), publish true yield which makes that calculation correct. Here is a link which you can relate with for analysis.

http://www.cenbank.org/rates/GovtSecurities.asp

unite4real:


My point is the auction guys (CBN), publish true yield which makes that calculation correct. Here is a link which you can relate with for analysis.

http://www.cenbank.org/rates/GovtSecurities.asp

Thanks egbon., i understand chukzyfcb explanation now

ernie4life:


I like your calculations, very detailed, the only point you've got wrong is that you can get FD for 1m at 7% net ( no witholding tax) for 90days, so tell me how Tbills is better?

Fixed deposit with no witholding tax, shey banks dey do charity work ni?.....don't flatter yourself bro, I'v proven to you that T.bills beats FD every single time. Meanwhile no bank can give u 7%, except you have like 500m to invest, then they might consider. If yu know of anybank offering 7% without Tax, mention it here & I'll prove otherwise

Good day all.

Please when is the next auction date for treasury bills


CC Feelamong.

Chukzyfcb:

Fixed deposit with no witholding tax, shey banks dey do charity work ni?.....don't flatter yourself bro, I'v proven to you that T.bills beats FD every single time. Meanwhile no bank can give u 7%, except you have like 500m to invest, then they might consider. If yu know of anybank offering 7% without Tax, mention it here & I'll prove otherwise

leave the nigga jor ,he hell bent on selling disaster in waiting investment house nospector and other wonder bank come in to mind

...

debbydee:
Good day all.

Please when is the next auction date for treasury bills


CC Feelamong.

The next Auction date is 6th of April.

Anyone planning to bid should have thrown in their bids before 12noon today at their banks

feelamong:


The next Auction date is 6th of April.

Anyone planning to bid should have thrown in their bids before 12noon today at their banks

thank you.

Hello guys,
I requested my bank help purchase TB on Tuesday but deduction hasn't taken place in my account. Could it be that it wasn't successful?

Please gurus in the house...

Hi EveryoNE,

From the 2nd quarter 2016 calendar, the auction is actually today (07/04/2016)[/b] and the next one [b]21/4/2016,.... 05/05/2016,.... 19/05/2016.... 02/6/2016[i][/i].