olujaidi:


Retail credits. They probably lend at 3-6% monthly. In a year that's at least 36%. Retail lending is a fast growing sector that the commercial banks don't really play in but MFBs and Finance Houses do.

You're wise. This particular MFB gives out loan on a 6-7% return rate on a reducing balance method (another word for compounding interest). When calculated annually, that's over 30% so I don't see the impossibility in giving around 15% rate on fixed deposits.

Commercial banks have made many of us settle for mediocrity. These ones will provide loans at over 12% (when you provide your head as collateral), fix your money at ridiculous rates (3-6%), and chart away around 40% of accrued interests when you dare to liquidate before maturity.

Most of these commercial banks have become so lazy. Over 40% of Zenith bank's earnings came through TBills in 2018. In the last quarter alone, 5 banks earned over 15 billion from "account maintenance charges". That's how many of these lazy banks survive.

https://www.nairaland.com/5160251/5-banks-earn-n15.7bn-account

Gtb 12.5 just got debited #364 days

Got debited GTB ..Means Auction was successful

ikechukz:
Hello everyone, thanks for all your contributions in this thread, especially to the OP. I have a spare 500k that I wish to invest, and my question is this; rather than investing for say 14% for a year, will it be better for me to invest for say 12% for three months and do it like three times in a year. Which of them will pay more?

Interest rate is usually per annum. if you do 12% for 3 months, the interest you got will be divided by 4 since 3 months is a quarter of one year.

For example, 12% of 500K is N60,000. This 60K is actually per annum. Since you are doing it for 3 months out of 12 months, the interest will be 3/12 X 60,000 which is 15,000.

so for 3 months, you earn 15K and not 60K. If you now do this three times in a year, you will have earned 45K in 9 months.

vacanci:


Interest rate is usually per annum. if you do 12% for 3 months, the interest you got will be divided by 4 since 3 months is a quarter of one year.

For example, 12% of 500K is N60,000. This 60K is actually per annum. Since you are doing it for 3 months out of 12 months, the interest will be 3/12 X 60,000 which is 15,000.

so for 3 months, you earn 15K and not 60K. If you now do this three times in a year, you will have earned 45K in 9 months.

wow! Thanks a lot for breaking it down for me. It's all I wanted to know.

Please, is it possible for me to have more than one TB with one bank?

GodgraciousR:
Please, is it possible for me to have more than one TB with one bank?

you can even have up to 50 with one bank if u want

Thanks a lot. God bless you.

Acidosis:


You're wise. This particular MFB gives out loan on a 6-7% return rate on a reducing balance method (another word for compounding interest). When calculated annually, that's over 30% so I don't see the impossibility in giving around 15% rate on fixed deposits.

Commercial banks have made many of us settle for mediocrity. These ones will provide loans at over 12% (when you provide your head as collateral), fix your money at ridiculous rates (3-6%), and chart away around 40% of accrued interests when you dare to liquidate before maturity.

Most of these commercial banks have become so lazy. Over 40% of Zenith bank's earnings came through TBills in 2018. In the last quarter alone, 5 banks earned over 15 billion from "account maintenance charges". That's how many of these lazy banks survive.

https://www.nairaland.com/5160251/5-banks-earn-n15.7bn-account

Well said

olujaidi:


The riskiest thing in life is to take no risk. Everything in moderation

We are already taking risk in other aspect. We don't want to take unnecessary risk with our already earned money again.

NL1960:


They are not. The give you at 21% per annum and lend at 5% per month which is 60% per annum. 60%-21% = 39%.

Boss,

Do this MFB pay as at when due?

Or I should just stick with my FBN MMF?

ikechukz:
Hello everyone, thanks for all your contributions in this thread, especially to the OP. I have a spare 500k that I wish to invest, and my question is this; rather than investing for say 14% for a year, will it be better for me to invest for say 12% for three months and do it like three times in a year. Which of them will pay more?

This type of question has the highest frequency on this thread, lol

OgogoroFreak:
You must be living in a fools paradise.

That interest rate is per annum. You can google VFD group Plc. Or i can show you my investment letter.

amjustme2:
In this Nigeria?

Please tell me the bank that pays this.

Possibly a link to the source of this info.

Else you should delete this post. You could be deceiving a lot of people.

Very possible sir. Check www.vfdgroup.com
Iook at the group's subsidiaries. You can get 12.5% per annum with 100k.

Desanta:

Impossicant.

Very possible man. I can show you my investment letter.

Come who Don see result of the auctions today......

CBN Raises 364-Day T-Bills Rate, Cuts 91-Day, 182-Day Rates
https://businesspost.ng/2019/05/03/cbn-raises-364-day-t-bills-rate-cuts-91-day-182-day-rates/

dipoolowoo:
CBN Raises 364-Day T-Bills Rate, Cuts 91-Day, 182-Day Rates
https://businesspost.ng/2019/05/03/cbn-raises-364-day-t-bills-rate-cuts-91-day-182-day-rates/

"
Lastly, of the N38.17 billion worth of the 364-day bill
auctioned, subscriptions worth N157.63 billion were
received, while N71.07 billion was sold to subscribers."

This is why rates are so low.

But... Where is all this liquidity coming from??


I pity all these people going long at current rates shaa...

RealityShot:


This is why rates are so low.

But... Where is all this liquidity coming from??


I pity all these people going long at current rates shaa...

Foreign investors

I have seen guys here talking about the Juicy Renmoney rates...

it's simply high risk, even higher risk than Equity IMO!

Guys this is definitely a new bubble! I can bet one day this market will crash. GTB is already trying to play the game, but everyone has forgotten how NPL's nearly destroyed the banking industry and the Nigerian Economy. Move with caution with all this higher rates, remember the higher the reward? Then most definitely the higher the risk!

And for those that will say something about life without risks and blah blah blah, I agree, but it seems many of us have forgotten why we like Tbills and FG bonds, it's not because it will make us rich quickly, it's because it is safe and consistent. By all means take risks, but know the type of risk you are taking.

amjustme2:
They should upgrade to Fund Managers,

Join FMAN

And I will start taking them serious.

They can't join FMAN because of the nature of that asset/investment. It's not regulated, it's just pure debt backed by the good will of ordinary good credit ratings. Nothing more.

madprophet:


Boss,

Do this MFB pay as at when due?

Or I should just stick with my FBN MMF?

Stick with what you know. If you can take the risk go on though.

vacanci:


Interest rate is usually per annum. if you do 12% for 3 months, the interest you got will be divided by 4 since 3 months is a quarter of one year.

For example, 12% of 500K is N60,000. This 60K is actually per annum. Since you are doing it for 3 months out of 12 months, the interest will be 3/12 X 60,000 which is 15,000.

so for 3 months, you earn 15K and not 60K. If you now do this three times in a year, you will have earned 45K in 9 months.

Not quite.
Simply put, rates are lower for shorter tenors. Add multiple custodian fees etc, and the difference is clear.

madprophet:


Boss,

Do this MFB pay as at when due?

Or I should just stick with my FBN MMF?

I do not know as i have never done any fixed deposit with them. I got to have an idea of their loan interest rate when i made an enquiry. The lady that responded to me refused to tell me their interest rate despite persistently asking. I got an idea of it when i went to their website and simulated a loan with their loan calculator. Iam aware that most MFBs do not use the reducing balance method for loans especially for retail/consumer loans but use flat rate method and it is always per month. They will tell you that their interest rate is single digit but they will not tell you that the single digit is per month.

jidobaba:

Not quite.
Simply put, rates are lower for shorter tenors. Add multiple custodian fees etc, and the difference is clear.

the question asked by ikechukz has been answered in its simplest basic form and he is already satisfied. Which one is "not quite" again. He is not asking what happens to rate on a short term or long term. he is not asking of all those insignificant custodian fees.

he simply wants to know if rate is annualized or not and answer had been provided.

Is there any way I can buy treasury bills without going to the bank and is there any special requirement and kind of new thanks

vacanci:


the question asked by ikechukz has been answered in its simplest basic form and he is already satisfied. Which one is "not quite" again. He is not asking what happens to rate on a short term or long term. he is not asking of all those insignificant custodian fees.

he simply wants to know if rate is annualized or not and answer had been provided.

NO SIR!

he knows that.

what he really wanted to know is:

if rolling over would make him get compounding effect.


AND the answer is YES!

however, due to FEES (as stated above) the difference for 3 months will be too small

RealityShot:

NO SIR!

he knows that.

what he really wanted to know is:

if rolling over would make him get compounding effect.


AND the answer is YES!

however, due to FEES (as stated above) the difference for 3 months will be too small

below was the response from the person that asked the question and the explanation was the exact response he wanted to get, so WHAT'S YOUR PROBLEM WITH HIS SATISFACTION.

Did you read the part where he said "ITS ALL I WANTED TO KNOW"
afterall, you guys refused to answer him initially. Now he got his answer, debate has started. I taya o

ikechukz:
Hello everyone, thanks for all your contributions in this thread, especially to the OP. I have a spare 500k that I wish to invest, and my question is this; rather than investing for say 14% for a year, will it be better for me to invest for say 12% for three months and do it like three times in a year. Which of them will pay more?

Interest rate is usually per annum. if you do 12% for 3 months, the interest you got will be divided by 4 since 3 months is a quarter of one year.

For example, 12% of 500K is N60,000. This 60K is actually per annum. Since you are doing it for 3 months out of 12 months, the interest will be 3/12 X 60,000 which is 15,000.

so for 3 months, you earn 15K and not 60K. If you now do this three times in a year, you will have earned 45K in 9 months.

ikechukz:
wow! Thanks a lot for breaking it down for me. It's all I wanted to know.

GonFreecss1:


Stick with what you know. If you can take the risk go on though.

No oo.

Am already taking risk.

MMF is enough for me

[quote author=madprophet post=78022202]I saw one advert about Ren Money where they have Fixed deposit rate of btw 12 to 21%

Any body used them before[/quote

Spoke with one of their rep in charge.. Says 21% was their former rate while 17% is d new rate and withholding tax of 10%
For a million naira=1000000*17%*0.9=153k @ d end of the year..
Over to the ogas and gurus

seun289:

Spoke with one of their rep in charge.. Says 21% was their former rate while 17% is d new rate and withholding tax of 10%
For a million naira=1000000*17%*0.9=153k @ d end of the year.. 
Over to the ogas and gurus

Is the company regulated? Is your money insured?