Good day house,

I have a question please.

I submitted forms for primary auction of September 18, 2019 for 364 days at a First Bank branch. I received investment advice to day and the rate on it was 12.95% and not 13.3% which was CBN stop rate for 364 days.
I've called and the explanation am getting doesnt sound right. They have said that the bank decided to offer its customers 12.95%.

Can the bank decide the rate to offer its customers for a primary bid?

Yes

Bengurion1:

Good day house,

I have a question please.

I submitted forms for primary auction of September 18, 2019 for 364 days at a First Bank branch. I received investment advice to day and the rate on it was 12.95% and not 13.3% which was CBN stop rate for 364 days.
I've called and the explanation am getting doesnt sound right. They have said that the bank decided to offer its customers 12.95%.

Can the bank decide the rate to offer its customers for a primary bid?

Bengurion1:

Good day house,

I have a question please.

I submitted forms for primary auction of September 18, 2019 for 364 days at a First Bank branch. I received investment advice to day and the rate on it was 12.95% and not 13.3% which was CBN stop rate for 364 days.
I've called and the explanation am getting doesnt sound right. They have said that the bank decided to offer its customers 12.95%.

Can the bank decide the rate to offer its customers for a primary bid?

Yes. If you have N50m, you can specify your own rate before the primary auction. If you do not have N50m, you have to go with whatever rate the bank bid during the primary auction. See it as the bank selling to you from their pool in a secondary market scenario. In addition, that CBN rate is called Stop Rate. Some banks bid higher than that and fail. So most banks normally bid low in order to have a higher chance of succeeding. The CBN Stop rate is not known prior to the auction.

I intend to do 1M for 364days for at least 13%., but due to some unexpected expenditures, I will have only 900k to invest. 
Should I write 1M in the Tbill primary market form(even though I have 900k in the account) 
Knowing fully well that the 900k covers the discount value? 
I know this is not applicable to Firstbank. I am asking as regards stanbic ibtc since Stanbic usually debit discount value in Tbill. 
NB
Face value = 1M
Discount value = 870k
Assuming rate = 13%
Tenor =364 days 
Thanks

Please can someone confirm if this is still possible with stanbic ibtc

michealekene:
 I intend to do 1M for 364days for at least 13%., but due to some unexpected expenditures, I will have only 900k to invest. 
Should I write 1M in the Tbill primary market form(even though I have 900k in the account) 
Knowing fully well that the 900k covers the discount value? 
I know this is not applicable to Firstbank. I am asking as regards stanbic ibtc since Stanbic usually debit discount value in Tbill. 
NB
Face value = 1M
Discount value = 870k
Assuming rate = 13%
Tenor =364 days 
Thanks

Please can someone confirm if this is still possible with stanbic ibtc

No more possible with stanbic bank.

The reason is - they will deduct the full capital on Thursday morning, following the Wednesday auction.

Then they will credit you with the interest later that Thursday. So, if your capital is not complete, I wonder how they are going to do it.

I think GTbank might allow you do it.

Let the elders who use GTbank come in and answer.

michealekene:
 I intend to do 1M for 364days for at least 13%., but due to some unexpected expenditures, I will have only 900k to invest. 
Should I write 1M in the Tbill primary market form(even though I have 900k in the account) 
Knowing fully well that the 900k covers the discount value? 
I know this is not applicable to Firstbank. I am asking as regards stanbic ibtc since Stanbic usually debit discount value in Tbill. 
NB
Face value = 1M
Discount value = 870k
Assuming rate = 13%
Tenor =364 days 
Thanks

Please can someone confirm if this is still possible with stanbic ibtc

If you can lend it from someone close to you, do...knowing fully well that you'll def pay up on Thursday. I do this alot to have a round figure investment.

[quote author=Grupo post=82501694]

No more possible with stanbic bank.

The reason is - they will deduct the full capital on Thursday morning, following the Wednesday auction.

Then they will credit you with the interest later that Thursday. So, if your capital is not complete, I wonder how they are going to do it.

I think GTbank might allow you do it.

Thanks What about for secondary market stanbic still??

[quote author=michealekene post=82502037][/quote]

What about secondary market?

Damolux01:
If you can lend it from someone close to you, do...knowing fully well that you'll def pay up on Thursday. I do this alot to have a round figure investment.

Possible for secondary market?

[quote author=michealekene post=82502037][/quote]

I don't know about secondary market as I've not done secondary market with stanbic before.

michealekene:
 I intend to do 1M for 364days for at least 13%., but due to some unexpected expenditures, I will have only 900k to invest. 
Should I write 1M in the Tbill primary market form(even though I have 900k in the account) 
Knowing fully well that the 900k covers the discount value? 
I know this is not applicable to Firstbank. I am asking as regards stanbic ibtc since Stanbic usually debit discount value in Tbill. 
NB
Face value = 1M
Discount value = 870k
Assuming rate = 13%
Tenor =364 days 
Thanks

Please can someone confirm if this is still possible with stanbic ibtc

go there and try it.
If it fails then do secondary and reinvest interest.

GOOD luck.

Damolux01:
If you can lend it from someone close to you, do...knowing fully well that you'll def pay up on Thursday. I do this alot to have a round figure investment.

I used to do that too.

michealekene:
 I intend to do 1M for 364days for at least 13%., but due to some unexpected expenditures, I will have only 900k to invest. 
Should I write 1M in the Tbill primary market form(even though I have 900k in the account) 
Knowing fully well that the 900k covers the discount value? 
I know this is not applicable to Firstbank. I am asking as regards stanbic ibtc since Stanbic usually debit discount value in Tbill. 
NB
Face value = 1M
Discount value = 870k
Assuming rate = 13%
Tenor =364 days 
Thanks

Please can someone confirm if this is still possible with stanbic ibtc

I doubt this. Becos 1M is suppose to be deducted and the interest paid to you. What do I know, maybe somebody has done it b4. What I know is that you may ask dem to invest even the profit. Giving you about #1,034,444 -I did this at the beginning of the year.

michealekene:
 I intend to do 1M for 364days for at least 13%., but due to some unexpected expenditures, I will have only 900k to invest. 
Should I write 1M in the Tbill primary market form(even though I have 900k in the account) 
Knowing fully well that the 900k covers the discount value? 
I know this is not applicable to Firstbank. I am asking as regards stanbic ibtc since Stanbic usually debit discount value in Tbill. 
NB
Face value = 1M
Discount value = 870k
Assuming rate = 13%
Tenor =364 days 
Thanks

Please can someone confirm if this is still possible with stanbic ibtc

1M should give 130k
But you need 1M in...
I'd say run 800k, take 104k (up front interest)

Add 100k(4k remaining)to the remaining 100k run 200k on the next date take 26k(up front interest) add to the remaining 4k you have 30k cash and 1M in the bank
My 2cents

Innoxxacs:
1M should give 130k
But you need 1M in...
I'd say run 800k, take 104k (up front interest)

Add 100k(4k remaining)to the remaining 100k run 200k on the next date take 26k(up front interest) add to the remaining 4k you have 30k cash and 1M in the bank
My 2cents

u go school

Innoxxacs:
1M should give 130k
But you need 1M in...
I'd say run 800k, take 104k (up front interest)

Add 100k(4k remaining)to the remaining 100k run 200k on the next date take 26k(up front interest) add to the remaining 4k you have 30k cash and 1M in the bank
My 2cents

A Harvard graduate in our midst . . .

Damolux01:
If you can lend it from someone close to you, do...knowing fully well that you'll def pay up on Thursday. I do this alot to have a round figure investment.

Sharp guy!

Sell Pressure Shoots Treasury Bills Yields to 13.35%
https://businesspost.ng/2019/09/24/sell-pressure-shoots-treasury-bills-yields-to-13-35/

Good morning house

I used to follow this thread for a while until the stresses of life distracted me somehow... lol

I do not know if this topic has been addressed here but I’d like to ask... what are the thoughts about Stanbic’s money market? Is it better than Tbills? What are the standout differences?

I will really appreciate any helpful responses before I make my next move. Thank you so much great house!

Damolux01:
If you can lend it from someone close to you, do...knowing fully well that you'll def pay up on Thursday. I do this alot to have a round figure investment.

Thanks...I already subscribed to tbills with stanbic ibtc, secondary market around August I think, where they deducted the discounted value alone living behind the interest.

I'm hoping that before month end I initiate another 1M but it's not complete, of which from the high rates now and all...when dey deduct the discounted value, it can cover including the charges.

I know someone answered the question a while ago, but I needed to know the possibility for secondary market

Innoxxacs:
1M should give 130k
But you need 1M in...
I'd say run 800k, take 104k (up front interest)

Add 100k(4k remaining)to the remaining 100k run 200k on the next date take 26k(up front interest) add to the remaining 4k you have 30k cash and 1M in the bank
My 2cents

Lool...thanks. but this one na stress. I prefer rounding up in million. Plus...I also found out stanbic doesn't reinvest interest for both pry and sec. It would have been a better option like I do with FBN

nofij:
Good morning house

I used to follow this thread for a while until the stresses of life distracted me somehow... lol

I do not know if this topic has been addressed here but I’d like to ask... what are the thoughts about Stanbic’s money market? Is it better than Tbills? What are the standout differences?

I will really appreciate any helpful responses before I make my next move. Thank you so much great house!

Your question has an answer here
https://www.nairaland.com/1912965/mutual-funds/187

Boyhood:

Your question has an answer here
https://www.nairaland.com/1912965/mutual-funds/187

Thank you boss... I didn’t see answers to my questions there though.

Poor rate today from FirstBank..

11% 177days.

#secondary market

Union bank rate today for 93days is 11%.

ahiboilandgas:
a new area will be developed,properties are over price in Nigeria and exploitative in poor infastructure...i rather buy a million dollars house in Vienna than 350m in banana island

Exactly, those places are almost at thier peak.

Eko Atlantic City is on the way to take the wealth from banana island, there are fast growing areas within Lagos than can generate a tangible return after holding for some years.

If that owner decides to sell that land 5yrs later, I am very sure he can't sell it at more than 600m, whereas if that money is split into mid sums like 20,25m for a plot scattered around fast growing areas in Lagos, in 5yrs, it could hit 40m or more.

that place already gives a Poor ROI, a 600m house can't give a rent of more than 20-25m per annum this is below 5% ROI....

Nice one bruh

Pls I need advise urgently. I applied for tbills in primary market. On the day of auction, an emergency arose and I applied to withdraw after the money was deducted in lien by my bank.
Can I get the money back immediately?or how long do I wait?
Pls. Help I'm stuck right now.

Good day house, I am trying to diversify my investment using investment house now.
Pls who has an idea of a reputable investment house with good ratings and rates .
I am open to more options of investment.
Thanks

michealekene:


Possible for secondary market?

yes pls.

mymadam:
Sharp guy!

That's the surest way to go!

Innoxxacs:
1M should give 130k
But you need 1M in...
I'd say run 800k, take 104k (up front interest)

Add 100k(4k remaining)to the remaining 100k run 200k on the next date take 26k(up front interest) add to the remaining 4k you have 30k cash and 1M in the bank
My 2cents

Did you consider the charges and the number of days lost from the original calculation and perhaps the possibility that interest may drop. I embarked on this just last month and within a week interest went from 13% to 11.7%. Stanbic can be crazy with interest sometimes. I would say demand and supply sha.