₦airaland Forum

Farmerforlife:
You invested in Treasury bills, and are considering more investments in FG bonds, yet you are not a fan of 'why not invest the money for them'? I do not know how long you have been paying in fixed amounts monthly, but compute how much more you would have had if you had invested in treasury bills from the beginning instead of just keeping the money in a savings account. In a country with double digit inflation, you were not 'maintaining the capital' as you seem to believe. Your capital was losing its purchase power throughout the period that you held it in the savings account.

I do not generally like giving specific investment advice in a faceless forum. Different people have different needs, and today's investment might become tomorrow's loss, so it is always preferable to seek professional advice in person, and to have regular contact with your fund manager.

As for the 10k and buying shares, I believe that the questioner asked about investing 10k per month, not a one-off 10k investment as you imply. Nor is it necessary to start off from blue chip company shares. For the long term, and with a good fund manager/ stockbroker, one can gradually build up to them.

Go and read my post again. I build the amounts gradually in savings before doing the investment and not doing investment instead of saving. People always say why saving the amounts, you should invest and i and somebody else ask if you will be investing the little little amount. This is not the first time iam reading this. There are some people that would have been putting 1k aside in an account for their kids but they are being told of inflation. Who told you that it is only savings that is affected by inflation?. Btw, you mean if i have 10k, i should just dash and buy NTB or dash and buy shares?. That is not my style. I also have some of their funds in shares and i targeted stocks that have good divided paying policy. As for the fund managers, you will be surprised that some of them do not even know jack about fund management. How many fund managers will accept 10k from you to manage for them?. The best you can do with that is MMF and i chose not to do it as i can manage my funds myself.

Farmerforlife:
If the intention is to keep it for them long-term, don't do that. Invest the funds for them instead. The inflation rate in Nigeria is much higher than the interest rate on savings. Financially speaking, it is just not worth it, because by the time they are old enough to spend it, whatever money you have saved for them will be worthless. Think of buying blue chip shares instead, or shares that have good future prospects.

Iam never a fan of this 'why not invest the money for them'. To me, this is just theory. As somebody has asked, what if a parent does not have the bulk money for investment?. Let us take shares for example. How many shares of a blue chip company can 10k buy or you want the person to go and buy shares of companies like DAAR communication and those other companies that came in during the era of the 'dubious' IPO. I have a children savings account for my kids that i put in a fixed amount every month. I have been doing that since they were born. Last year, I moved the money to 364-day NTB and that conveniently paid their school bills. I was more interested in the preservation of the capital and not interest. I could also have been doing MMF but i wanted to have a total control. Once the current build up in the account gets to another reasonable level, i might consider doing an FGN bond so that the quarterly interest payment will self fund the account.

ugreat:
What's the interest rate like?

1% above savings interest rate.

zamirikpo:
So federal govt wants to stop paying my house rent

It is well ooh....

No mind them. They want to stop paying my pikin school fees. Wicked federal govt.

following.

Grupo:
Brother, is it knowledge you want to impart or you want to give me headache? Lol

Make i reduce your headache small by helping you.

(1) If you want to know about a specific term or topic in TB, just type it on the search bar of this thread and search.

(2) It will give all the pages or thread where it is mentioned.

(3) If you are not satisfied or still confused or feel they are still too many, go to the bottom page where you will see "Not Satisfied? Click Here To Try Google Search!"

(4) Click on that and it will display for you where you can find it.

(5) You can start reading from that point for the specific topic that you want to learn or need

(6) For example, try searching for "NTB termination before maturity"

Grupo:
Sir, reading from the first page is not easy o. It is like reading that Ababio chemistry textbook we used in secondary school from beginning to end.

How much you go pay me to help you read from the first page?. Once you pay me and i finish reading, i will transfer it to your brain by using my head to knock your head. Deal?.

nafresh:
What has happened to Nairaland? I miss the good old days when you can get good information on this platform. I was looking for information on Corona and Google brought me here and all I can see are irrelevant comments.

What a pity

What information are you looking for?.

egbinlomo:
Hello House

Please need a calculation on t bills of 28M with 90days tenure. What I got as interest is #802,794

Thanks

p = Principal

t = Time

i = Interest

r = Rate
-----------

i = p*t*r/(365 * 100) = ptr/36500

i*36500 = ptr

r = i*36500/p*t

r = 802794 * 36500 / 28000000 * 90

r = 29301981000 / 2520000000

r = 11.63%

Iammelvin:
300k

In Stanbic, once you fill their TB form, the amount specified is placed on hold. If the bid fails, the hold is removed and your balance comes back to normal but if it is successful, the hold is removed while the discounted (TB Amount - Upfront Interest) amount is debited from your account.

So you have to wait till tomorrow or Friday to know if your bid was successful as CBN settles on Thursdays.

Iammelvin:
Good afternoon nairalanders..i'm new to TB.. Yesterday I opened an account with STANBIC IBTC bank.. To cut the long story short , I transferred 305k to the acct for TB purpose..the lady gave me the form to fill..I opted for 364 days.. I asked her for the current rate she told me that Cbn has not publish that they will do the bidding when it's out.. So I left the form with her.. Today I logged in with my app and I discovered that m having only 4996 naira.. I didn't see my upfront interest and I don't no the rate she used ..what should I do tomorrow when I get to the bank?

How much did you specify on the form to be used for the364-day TB?.

feelamong:
Not true.....If you understand the workings of Treasury Bills,

You can decide to liquidate before maturity and make money on it..(Capital Appreciation)

This is how banks and discount houses trade Treasury Bills. They dont hold all to maturity!

The trick is to buy when the Yield is high and sell when the yield is low!

Does this means that somebody like me that bought when it was 18% will make a profit if i decide to terminate now?.

Fhemmmy:
We might be able to get maybe an X3 BMW

Thanks. i will contact when iam ready.

Fhemmmy:
There is always something for everyone my chairman at the top . . . Take the beauty home to Mama and enjoy the stick . . . 2008 Hummer H3 and could be all yours for just a token of 4.4M Naira NOT INCLUDING Clearing that can be as high as 800K

Hummer ke?. Dem still dey drive Hummer jeep for Nigeria?. I believe there are better and finer German SUV Benz around. My first car na Benz 200. I rock that motor sotay people come dey pity the vehicle. Many people did not believe that i would be able to drive another vehicle but i was able as i dey manage Toyota corolla 2007 now. I be Michael Schumacher and Sebastian Vettel fan.

Fhemmmy:
We will be able to get you a reliable on at a cost of ONLY 3.5M Naira and clearing is NOT included . . . Will cost you 600K to clear this and we look forward to being your dealer too

Oga Fhemmmy, iam a manual drive fanatic. Is there really a US or Canada SUV that is manual?.

.

fodukes:
Thank you bro for this detailed explanation, well let me tell you my experience today. Before today, I had gone to the bank on the 28th of Feb and i gave the instruction for the tbill to my account officer (i already explained the story in my previous post). So today I went to the bank armed with all this info ive read here, this is 10 days after my first instruction. So instead of going to my account officer's office, I went to customer care and told them what i wanted. The gentle man that attended to me started speaking english, well i followed up and schooled him well on the matter... He wasnt able to keep up so another lady take over from where he stopped (omo no be small thing ) This new lady then told me to write an instruction which i refused because i pointed out to her that i wrote one on the 28th of feb. and it wasnt treated because if it was I wouldnt be here. That was when she said we shud go see my account officer which I categorically told her i didnt want to see her because im upset so she went by herself, came back to me and started apologizing. She went back into their marketing office again afterwards and came back with the rate of 12% for 104 days and i said i was going to take it. She then pleaded with me to write a new instruction quickly so they can treat it because they had a portal deadline of 1pm or something, while still asking me to come to the marketing office where my account officer was and i still refused - telling her i didnt want to see her and that as a matter of fact i wanted a new account officer. In the end she said they had done everything and my account will be debited before the end of the day. As at 5pm my money was and is still sitting comfortably in my account ooo... so i called the account officer to ask for update and she said i will be debited today or latest tomorrow morning, if not then that means it was not successful. The way im going to storm that Gtbank tomorrow ehn by 11am if i dont get debit alert, them go hail.

In case you need backup, i dey here. Just 30% commission of the upfront interest is enough for me.

emmanuelewumi:
I am sure, you were very active on SMN

Yes o. Unfortunately, Seun allowed that site to die.

ihedioramma:
Please who are you sir/ma ?

I could not reply your PM i saw in my mail. I now decided to also send a PM. I do not know if Nairaland PM does not work.

Btw, Pa Ewumi is Baba Landlord 1 of Lagos.

emmanuelewumi:
That is none of your business.

ihedioramma:
You said you paid your child school fees for one year . My question is, how much is there school fees for the one year ?

Haba, i cannot put the figure in this public place. Moreover, i did not even mention the school. You can PM me for details.

ihedioramma:
How much is there school fees ?

I do not understand this question o.

EgunMogaji:
Giving it back is not the issue, giving it back at a loss is the issue.

Any serious sales entity should be able to give a full refund less fees for paperwork within 5 days /500 miles. But has to be something serious like what OP described. Steering swap is a biggie.

I feel bad for the OP and I’m using this as a learning tool from a customer service perspective.

Yes, our leaders are scientifically corrupt but I fear the average citizen more. Most are spectacularly gifted in defrauding fellow citizens.

Which Leaders?. Are they not from this same crop of citizens?. Imagine if somebody from this fraudulent cars45 now get into government or into public leadership position, what will happen.

.

TONY56:
Oh yes o.
By the time they mature, we'll see what the prevailing rates will be. But I Don chop the upfront interest sinnnnnnce.

All the same even if I want to terminate it now, I will be selling at about 12.5% for the remaining 100 days left and losing just about N35,000 out of the N184,000 interest I got last year because TB rates has fallen.

That's the beauty of buying when it's very high and terminating when it's very low.

No be only you chop upfront interest o. Na the 18% upfront interest i take pay my pikin one year secondary school and boarding fees.

TONY56:
Hmmmmmmmmmmmmmmmm.
Guaranteed 16%?
Or just for today
Pls just let me know where 16% is guaranteed in writing and without a caveat for Mutual Trust.
The guy jumping for joy at 12.5% for 94-day tenor is not stupid o if you don't know

18% TBs of last year never mature. Mine too at 18% never mature.

TONY56:
Ah!!! That last two page's (477 &478) were too hot for me. So I simply hid myself somewhere just observing. You know, the youths completely took over activities and I am not qualified to attend the famous Quilox and the likes for the big boys

If I had showed up, it's possible that I could be caught in the cross fire. In short, it was a page meant for the "Big boys" as there was not really much discussion on Treasury Bills but on how and where to relax which I think is sometimes welcome to me. So those of us who were not able to contribute turned to observers.

I hope you are having a beautiful Sunday

Chai, see as Engr Tony quick quick appear when i was already mobilizing to demand for an appeasement of the upfront interest on a 10m 364-day TB from you for abandoning us.

emmanuelewumi:
Oga na real waaaa for you oo. Na because of less than 5 pages of clubbing, Quilox etc you wrote this epistle.
You need to loosen up and free your mind Oga Freeman.

Go to the stock market thread, when the market is bullish we socialize, drink, party, dating, have one night stand, meet up courtesy of the thread.

Una dey drink non-alcoholic Hennessy for there?.

feelamong:
You guys will not kill me with laugh here sha!

Person wey get only N5M for Treasury no suppose to dey talk about Quilox o!

I rest my case!

Who tell you?. Na your money?. If i decide to blow everything for one night for Quilox, wetin concern you?.