pls can I liquidate my tb in another first bank branch other than the one I did the investment?


The said tb profit is at maturity what happens in this scenario?


Thanks in anticipation.

Corporate Bond Market to Rebound as FGN Securities Yields Drop
https://www.businesspost.ng/2017/11/07/corporate-bond-market-rebound-fgn-securities-yields-drop/

Stock Recommendation for this Week (November 6)
https://www.businesspost.ng/2017/11/07/stock-recommendation-week-november-6/

anitank:


1) First bank preferrably

2) There are no specific tenors for secondary market. The bank will tell you what they have available and their corresponding interest rates, but expect between 13% and 15%(rates are going down so this is not standard)

3) 16/11/2017 I believe

Thanks sir

C4Ltd:
I just received three days prior message from fbn notifying me of my secondary ntb investment maturity. wow! This one sure pass; nothing like RESTART or FREEZE or CRASH!

I like lots of stuffs I've read so far.
Can the transaction be done using FBN via phone or are there loads of paperwork to carry?

MrHighSea:

I like lots of stuffs I've read so far.
Can the transaction be done using FBN via phone or are there loads of paperwork to carry?

just a form to fill. shekina

I was given 15% this morning in first bank for 359 days. hope it's a good deal this time?

Guys what do you think?,
I was given the following in UBA Bank
66 days at a rate of 13.50% to expire 11th January, 2018
87 days at a rate of 13.70% to expire 1st February,2018
157 days at a rate of 15.00% to expire 12th April, 2018

Mascotlawman:
I was given 15% this morning in first bank for 359 days. hope it's a good deal this time?

Me thinks it's not good enough.
Between 15.8 & 16 would have been better by my thinking

CBN Auctions N48.2b OMO Bills as T-Bills Yields Drop to 18.69%
https://www.businesspost.ng/2017/11/08/cbn-auctions-n48-2b-omo-bills-t-bills-yields-drop-18-69/

Firstbank 50days @16%. Debited.

FirstBank 13.5% for 85 days

CBN Auctions N35.69b Bills as Overnight Rate Drops to 22.33%
https://www.businesspost.ng/2017/11/08/cbn-auctions-n35-69b-bills-overnight-rate-drops-22-33/

Please, i humbly disagree with this explanation. The Bank needs to pay him interest right from the day his account was debited. The interest to be paid is the value of opportunity cost of denying him access to the fund from 19th October 2017 to 2nd November 2017. He deserved to be paid interest for the days differential; the money would have earned interest in his personal account for those days.

freeman67:


Nothing went wrong with your money. FBN deduct funds immediately you make your request.. Infact if money is not in your account at the point you are making the request, it is as good as void. That said, It seem your request was for primary market.

A request made on the 19/10 was already late for primary market investment the next date was 2/11 which you got. The rates given to you are not bad considering the CBN rates posted here yesterday.

I hope this clear your doubts....

ozymes:
Please, i humbly disagree with this explanation. The Bank needs to pay him interest right from the day his account was debited. The interest to be paid is the value of opportunity cost of denying him access to the fund from 19th October 2017 to 2nd November 2017. He deserved to be paid interest for the days differential; the money would have earned interest in his personal account for those days.

My thoughts too. No bank will allow you access to their money for one day without you paying some charges. Same should apply here too.

Nigeria’s 5 Biggest Banks Generate N2tr in 9Months, Post N418b Profit as Assets Hit N21tr
https://www.businesspost.ng/2017/11/09/nigerias-5-biggest-banks-generate-n2tr-9months-post-n418b-profit-assets-hit-n21tr/

T-Bills Market Quiet as CBN Raises N83.2b to Mop up Liquidity
https://www.businesspost.ng/2017/11/09/t-bills-market-quiet-cbn-raises-n83-2b-mop-liquidity/

ozymes:
Please, i humbly disagree with this explanation. The Bank needs to pay him interest right from the day his account was debited. The interest to be paid is the value of opportunity cost of denying him access to the fund from 19th October 2017 to 2nd November 2017. He deserved to be paid interest for the days differential; the money would have earned interest in his personal account for those days.

Ok.

PLS I NEED CLARIFICATION FROM ANYONE WITH INFORMATION ON THIS. HOW MANY PERCENT CAN YOU GET ON TREASURE BILL ABOVE 50MILLION NAIRA PER ANNUM? THANKS

just2endowed:


9318.68 naira

Funny, isn't it? For me to invest my 200k for 106days and get 9k in return... Really? That's kinda stupid thang to do. 9k I give up

Karidqueen:

Funny, isn't it? For me to invest my 200k for 106days and get 9k in return... Really? That's kinda stupid thang to do. 9k I give up

bro show me a better way o.

TONY56:



It appears you still haven't understood what myself and few others on this forum have been explaining.

Let's assume that the N68,000 upfront paid to him is still intact in his account.

1.For defaulting, Union bank will debit his account with 25% of N68,000 = N17,000.

2.for collecting (in his account) N68,000 for an investment of 170-day tenor instead of N2,400 for 6days (because he is terminating after 6days), Union bank will equally remove N65,600(excess interest paid to his account) also from his account.

3.Assuming the investment is sold at same rate, and that other sundry deductions like tax, C.O.T, commissions, etc amount to N10,000 (may be less).

Total deductions will be N17,000 + N65,600 + N10,000 = N92,000.

4.So What he will get at the end of the day is {N980,000 which is amount invested + N68,000 upfront interest} - (N65,600 which is excess up front interest resulting from his termination after 6days - N17,000 which is penalty for terminating the investment - N10,000 which is the assumed sundry charges which could be less) =

{N980,000 +N68,000} - (N65,600 - N17,000 - N10,000)
=
N1,048,000 - N92,600 = N955,400

There his loss would be N980000 - N955,400 = N24,600.

But if the sundry charges is less, his loss will equally be reduced by the difference, but there is no way he would not lose even if he is paying N0.00 as sundry charges.

If after this very detailed explanation, you're still not convinced, then let's just await a feedback from the concerned person to prove either of us right.

Sir, with regards to point 1, As with all investments, the 25% penal charge will be applied on only the earned portion of the interest, which in this case is about 2400 (68000*6/170). So the 25% penalty will only amount to about 600, and not 17000.
Also the custodian and transaction fees are about 0.1%(980) and 0.125%(1225), commission is perhaps a max of 500, so even with the VAT, All the charges on this transaction should be under 3,000.00

Now, it is certain this investor will lose a little portion of his funds, but it will be due to the bank buying at a higher discount, and not due to the 25% penal charge.
Happy weekend sir great engr.

awesomeJ:


Sir, with regards to point 1, As with all investments, the 25% penal charge will be applied on only the earned portion of the interest, which in this case is about 2400 (68000*6/170). So the 25% penalty will only amount to about 600, and not 17000.
Also the custodian and transaction fees are about 0.1%(980) and 0.125%(1225), commission is perhaps a max of 500, so even with the VAT, All the charges on this transaction should be under 3,000.00

Now, it is certain this investor will lose a little portion of his funds, but it will be due to the bank buying at a higher discount, and not due to the 25% penal charge.
Happy weekend sir great engr.

The 25% penal charge is for the interest ad found in your proof of investment letter. If you are expecting an interest of 40000 for a 182 day investment.

If you terminate after 91 days, you will first of all lose 10k, then the interest will be prorated for 91 days which is 20k.

The investor will end up losing over 30k for premature termination of his investment.

It would have been nice, if the guy could have remembered to return with an update.

This termination is an interesting topic, I agree with the elders, messrs. tony and ewumi... I will also give an update of my experience with Stanbic.

Sach:

From my little experience, you can't tell until you get to the Bank. When I wanted to liquidate my tb from Stanbic bank, after about five days (91 days, 13%), I was told that the buy back rate was between 18.5/19% (which could have included some form of penalty). If I had gone for that, I would have lost all interest and principal would still have been greatly reduced. I am presently waiting for 30 days; which would see me have my full principal back and a very marginal (not up to 10%) portion of original interest. This is even assuming nothing has changed negatively (I.e buyback rate, because formula not clear) when I go back after the 30 days.

The main issue with Stanbic is the rate of repurchase. After waiting for 30 days, the purchase rate had reduced to 17% and given the 30 days invested, I got back the amount debited and additional 'interest', (about 12% of the initial total upfront interest).

[q

emmanuelewumi:



The 25% penal charge is for the interest ad found in your proof of investment letter. If you are experiencing an interest of 40000 for a 182 day investment.

If you terminate after 91 days, you will first of all lose 10k, then the interest will be prorated for 91 days which is 20k.

The investor will end up losing over 30k for premature termination of his investment.

Pa Emma, this is what the investor wrote: "On the terms and condition for the proof of investment I got it says( Termination of investment before maturity attracts 25% flat penalty on interest earned ) "
It is stated that the penalty will be on the interest earned which in the case of premature termination, cannot be the same as interest accruable on the full investment.
However, I do not mean to raise an opinion contrary to yours for while I yet toddled, you were already an investor. I salute sir.

Why do people do primary tbills when they have no idea of the rates?is there an advantage primary tbills have over secondary?I’ve been trying to wrap my head around this but I don’t seem to be doing good...I have until Monday before 12 to make up my mind.

awesomeJ:


Pa Emma, this is what the investor wrote: "On the terms and condition for the proof of investment I got it says( Termination of investment before maturity attracts 25% flat penalty on interest earned ) "
It is stated that the penalty will be on the interest earned which in the case of premature termination, cannot be the same as interest accruable on the full investment.
However, I do not mean to raise an opinion contrary to yours for while I yet toddled, you were already an investor. I salute sir.

Please terminate your Treasury Bills and give us a feedback. Theory is different from Practical.

You don't earn your interest daily. You earned upfront for the duration you signed for, it is your premature termination of investment that led to prorata of the interest.

You will be charged 25% of the upfront interest as was written on your offer letter. That is how it operates. I am telling you what I know and NOT what I think.

emmanuelewumi:



The 25% penal charge is for the interest ad found in your proof of investment letter. If you are expecting an interest of 40000 for a 182 day investment.

If you terminate after 91 days, you will first of all lose 10k, then the interest will be prorated for 91 days which is 20k.

The investor will end up losing over 30k for premature termination of his investment.

Thanks and God bless you for the explanations.
He should have gone back to read the agreement the customer had with Union Bank to fully understand what you have explained to him.

In my view, he merely expressed how he would have loved the bank to apply the 25% deduction and not what the agreement states

awesomeJ:


Pa Emma, this is what the investor wrote: "On the terms and condition for the proof of investment I got it says( Termination of investment before maturity attracts 25% flat penalty on interest earned ) "
It is stated that the penalty will be on the interest earned which in the case of premature termination, cannot be the same as interest accruable on the full investment.
However, I do not mean to raise an opinion contrary to yours for while I yet toddled, you were already an investor. I salute sir.

Did he not earn the N68,000 interest before deciding after 6 days to terminate it?

emmanuelewumi:



The 25% penal charge is for the interest ad found in your proof of investment letter. If you are expecting an interest of 40000 for a 182 day investment.

If you terminate after 91 days, you will first of all lose 10k, then the interest will be prorated for 91 days which is 20k.

The investor will end up losing over 30k for premature termination of his investment.

this is exactly y i will stick with money market funds..

i dont like USELESS HIDDEN "UNIMAGINABLE" CHARGES

how can you charge someone for money yo are going to give another person?

or will they not resell thesame bills to another person for the remaining time in OMO?

so why charge the terminator on interest for the full tenor?

then turn-around and charge him again on interest for the timeframe which he actual held the bills?

isnt the first charge abysmal?

tobe4real:
Why do people do primary tbills when they have no idea of the rates?is there an advantage primary tbills have over secondary?I’ve been trying to wrap my head around this but I don’t seem to be doing good...I have until Monday before 12 to make up my mind.

there is no difference O..

there is no reason whatsoever to wait 14days to buy a full 364day tenor when you can walk into a bank now and ask for the longest tenor available and see if you like the rate..

primary market DOES NOT GIVE BETTER RATES.