action from todays Primary Market Auction from easykobo


link is here http://www.easykobo.com/News.aspx?id=19870

Hi everyone, i need your advice. i'm currently a FBN fixed deposit acc holder. It is halfway to its maturity, precisely to mature first week of february. i av a mind of terminating it for a more profitable TB. If i apply for termination, how long will it take to be effected? Or i shld see FD to its maturity 3 months away from now? D FD is 180 days @ 7% on a principal well over 500k.

eniorisha:
Hi everyone, i need your advice. i'm currently a FBN fixed deposit acc holder. It is halfway to its maturity, precisely to mature first week of february. i av a mind of terminating it for a more profitable TB. If i apply for termination, how long will it take to be effected? Or i shld see FD to its maturity 3 months away from now? D FD is 180 days @ 7% on a principal well over 500k.

I'll assume that your principal is 1m.
The interest due on the investment is circa 35,000. Applying a 10% withholding tax brings it to about 31,500. If you hold to maturity, that's how much you'll earn.
If however you decide to terminate now, giving that you've only held for half the tenor, what you should earn becomes 15,750 approximately. As is common with most banks, a 20% penal charge of 3150 is deducted, bringing your returns to 12600.
If you now buy an 80-90 day secondary market t-bill at 14% to cover the rest of this investment tenor, the returns on the t-bill will be about 33,000 bringing your total returns to about 45,600 as against the original 31,500.
So clearly for every 1mill, there's about a 14,000(or 44%) advantage in terminating now and switching to tbills.
I should add that the FD termination request will be processed within 24hours. Try submitting the request early in the morning, and ignore the details regarding your intention to swap for tbills.

yinka2011:
action from todays Primary Market Auction from easykobo


link is here http://www.easykobo.com/News.aspx?id=19870

The rate is still good

@ Awesomej, u can't do this better even if your service here is being paid for in $. Thanks for d reply.

GodMercy2015:

Please is the rate for primary market or secondary market.

secondary market

eniorisha:
Hi everyone, i need your advice. i'm currently a FBN fixed deposit acc holder. It is halfway to its maturity, precisely to mature first week of february. i av a mind of terminating it for a more profitable TB. If i apply for termination, how long will it take to be effected? Or i shld see FD to its maturity 3 months away from now? D FD is 180 days @ 7% on a principal well over 500k.

Just write a letter to them saying you want a pre-mature termination as some urgent pressing needs came up. If by chance your account officer decides to ask you one-on-one the real reason, just tell him/her say Landlord wan pursue you comot for him house and also dem wan pursue your kids comot for school and stop them from writing their exams. QED.

Pre-mature termination na almost immediately. Once money hit your account, just go back there or go to another branch and ask for secondary market rates of TBs.

Just out of the bank.
189days @ 16%.
Bank : First Bank
Market : Secondary Market

16% at 182 days. As at today for Stanbic IBTC

Thats excellent rate.

chukzyfcbb:
Just out of the bank.
189days @ 16%.
Bank : First Bank
Market : Secondary Market

Got 175 days at 15.5% today at FBN

MrHighSea:
If the 12% FBN told me on Monday, 27th was the closing bid approved by CBN. I fear anything higher might fail.
I'm not an expert. Just what I could deduce from previous pages.

Ok....Tnx

SirBrightoc:
Got 175 days at 15.5% today at FBN

Got same, my account has been debited, please when are they supposed to pay the interest??

martin123:


Got same, my account has been debited, please when are they supposed to pay the interest??

Same here, but I chose to reinvest the interest. So I am not expecting it now. Don't know when they will credit your account, though.
I believe by Monday, since tomorrow is public holiday.

SirBrightoc:
Got 175 days at 15.5% today at FBN

Please is this interest per month or just for the 175days?

Geist:
Please is this interest per month or just for the 175days?

Na wa oooh.
Is it MMM?

Geist:
Please is this interest per month or just for the 175days?

Interest is usually stated per annum.
The return on investment may be calculated as 175/365 * 15.5% * Amt invested.
That is 175/365 * 155/1000 * Amt for the entire period of 175 days. Then, they will deduct their charges.

I am not an expert on this. This is my first time, but I am using my mathematical knowledge here. If I am wrong, there are experts here to help.

Geist:
Please is this interest per month or just for the 175days?

Interest is calculated per annum.

The yield from 15.5% @ 175 days is not the same with 15.5% @ 365 days or any other tenure.

While 15.5% of N200,000 @ 364-day, tenure will get you about N30,000 interest. Same interest rate (15.5%) and capital (N200,000) will yield N15,000 for a 182-day tenure. For a 91-day tenure, you get 15,000/2 = N7500, etc.

*The longer you're willing to keep your money with the apex bank, the higher your yield.

Desanta:


Na wa oooh.
Is it MMM?

I don't know oh. Hence my question

But interest are usually quoted with their corresponding time period. For instance;
91 days @ 12%
185 days @ 15%
365 days @ 17%

MrHighSea:
But interest are usually quoted with their corresponding time period. For instance;
91 days @ 12%
185 days @ 15%
365 days @ 17%

Yes, but it is calculated per annum. If your assumption is right, then nobody would invest in 365-day bills.

17% of N1,000,000 is N170,000.

You would be paid N170,000 only when you invest in a 364-day bills.


12% of N1,000,000 is N120,000.

For a 91- day bills, you would not get N120,000. What you get is N120,000/4 = N30,000. That's the true yield at 91 days.


I've seen some people rush these short tenures here without actually understanding TBills. Rates are not as important as the waiting period, unless you're investing huge sums of money.

amjustme2:
Thats excellent rate.

yes its a good rate indeed however, I got to the bank later in the day to find out that the deal didn't pull through. Complaints about poor network and stuff, so till Monday. Hopefully the rate can stay at 16% till then.

T-Bills Yields Flat at 17.78% as CBN Makes No Sale of OMO Bills
https://www.businesspost.ng/2017/12/01/t-bills-yields-flat-at-17-78-as-cbn-makes-no-sale-of-omo-bills/

Landlord don suffer!!!!

But I think the best is that he should be bold because that will make it faster. Its his money !!!

NL1960:


Just write a letter to them saying you want a pre-mature termination as some urgent pressing needs came up. If by chance your account officer decides to ask you one-on-one the real reason, just tell him/her say Landlord wan pursue you comot for him house and also dem wan pursue your kids comot for school and stop them from writing their exams. QED.

Pre-mature termination na almost immediately. Once money hit your account, just go back there or go to another branch and ask for secondary market rates of TBs.

Geist:
Please is this interest per month or just for the 175days?

Interest rates are always per year relative to ur holding period

As much as i believe so much in the benefits of T-Bills, this is the best time of the year to invest in real estate. The 13th month, bonuses, etcetera should be used for something tangible, hence few weeks from now you'll begin to wonder where all the cash went. I did some years ago, and today, I am better off for it.

2 plots of land are available @ Treasure Parks and Garden Phase 2, City of David Estate, SHIMAWA. I am offering 50% discount off the current market value offered by Adron Homes and Properties. Anyone interested can buy one or the 2. My contact: 07062160601.

Documents: Letter of allocation, Deed of contract, purchase receipt

4tunebest:
As much as i believe so much in the benefits of T-Bills, this is the best time of the year to invest in real estate. The 13th month, bonuses, etcetera should be used for something tangible, hence few weeks from now you'll begin to wonder where all the cash went. I did some years ago, and today, I am better off for it.

2 plots of land are available @ Treasure Parks and Garden Phase 2, City of David Estate, SHIMAWA. I am offering 50% discount off the current market value offered by Adron Homes and Properties. Anyone interested can buy one or the 2. My contact: 07062160601.

Documents: Letter of allocation, Deed of contract, purchase receipt

Anytime/everytime is always the best to patronize one's business.

4tunebest:
As much as i believe so much in the benefits of T-Bills, this is the best time of the year to invest in real estate. The 13th month, bonuses, etcetera should be used for something tangible, hence few weeks from now you'll begin to wonder where all the cash went. I did some years ago, and today, I am better off for it.

2 plots of land are available @ Treasure Parks and Garden Phase 2, City of David Estate, SHIMAWA. I am offering 50% discount off the current market value offered by Adron Homes and Properties. Anyone interested can buy one or the 2. My contact: 07062160601.

Documents: Letter of allocation, Deed of contract, purchase receipt

Dem tell you say na everybody dey collect 13th month, bonuses, etcetera?. Go and tell Kogi and Imo state workers to come and use such to buy your lands.

50% off

black season?

4tunebest:
As much as i believe so much in the benefits of T-Bills, this is the best time of the year to invest in real estate. The 13th month, bonuses, etcetera should be used for something tangible, hence few weeks from now you'll begin to wonder where all the cash went. I did some years ago, and today, I am better off for it.

2 plots of land are available @ Treasure Parks and Garden Phase 2, City of David Estate, SHIMAWA. I am offering 50% discount off the current market value offered by Adron Homes and Properties. Anyone interested can buy one or the 2. My contact: 07062160601.

Documents: Letter of allocation, Deed of contract, purchase receipt

WhiteChocolate:
I just wanna share the following
I got a NGN 10,000,000 tbills at 17.3880% on the 14/09/2017. The Discount value was NGN 8,265,963.84. I needed money urgently to secure a property so I terminated prematurely on the 17/11/2017. I was told it was gonna be sold on secondary market for 15.6%. I was actually fearful because of the 25% penal charge we have always talked about here; that doesn't exist by the way or maybe I don't get how that works because I was credited with NGN 8,726,027.40. I got a total of NGN 460,063.56. I see no deductions whatsoever anywhere and the head of service support told me the penal charge of 25% did not exist. For those who had experienced that in the past could it be a bank thing? Just thinking aloud

I now believe.

Acidosis:


Yes, but it is calculated per annum. If your assumption is right, then nobody would invest in 365-day bills.

17% of N1,000,000 is N170,000.

You would be paid N170,000 only when you invest in a 364-day bills.


12% of N1,000,000 is N120,000.

For a 91- day bills, you would not get N120,000. What you get is N120,000/4 = N30,000. That's the true yield at 91 days.


I've seen some people rush these short tenures here without actually understanding TBills. Rates are not as important as the waiting period, unless you're investing huge sums of money.

If somebody invests for example 2m how much do you think the person will be getting monthly