₦airaland Forum

obiak4:
the rate are not encouraging at all find attached zenith bank treasury statement at 23/10/14

Very discouraging rate, but that's been the expectation if CBN Gov. remains resolved on his strategy. Factor in the inflation rate over the year and weakening Naira, and you only have ~3.25% on a 364day tenor. Better to just wait after elections.

dolamcars:
PLS DON'T INVEST IN 2FX. they are not paying again.

Yeah, little bit of investigation confirms they stopped paying. Which HYIPs have you had consistent success with? I haven't used any before. And how exactly do you make money from them besides joining very early and cashing out the principal early too?

DeJames101:
Check out these two: http://www.2fxltd.com/?ref=mickey99 and
http://cryptosalary.com/?ref=mickey99

Have you actually used any of these? If so, what was your experience?

icemann:
Thanks. I would test the waters first before going in. One last thing, what is the average interest rate on fixed deposit on 3 months and 6 months tenor in any bank you know. Naira and dollar account.

I don't know about FD on dollar accounts. I'm also yet to find a bank that'll match Tbill rates; they're typically 2-3% lower + taxes, and not paid upfront. So, what you'll get for 5.2% on TBill for 6months will likely end up being ~3.2% on FD.

Mutual funds on the other hand is a competing alternative; ernie4life discussed about them in his thread here. I believe KGIF is offering 12% (per annum) and pays in 2 installments, although as with many managed funds, there are fees upward of 2%.

icemann:
Thanks brother. So which is a better deal for 6 months investment for $5000

FD's have a few shortcomings compared to TBills - taxes and lower interest rates being the biggest. For 6 months on $5000, I'd say go for TBill; with the current pattern, that should fetch you at least 5.2% interest.

icemann:
Thanks. I don't have a problem with the calculation. I know interest is compounded daily, weekly, monthly, biannual or annually. And the effective interest and rate of return is all I wanted to know. and do you know if banks have fixed deposit for $ account?

Fixed deposits (FD) and TBills are quite different. See previous posts.

TBill's effective interest is purely based on your tenor, and there are 3 tenors. The rates increase slightly on longer tenors. Visit CBN website for recent tenor rates.

If you wish to compound your interest, then prior to the end of your tenor, you have to issue instructions in advance to your bank to roll over your capital plus interest - assuming the interest is significant. Some banks do multiples of N20,000, some above/below. So, if your interest is lower than your bank's acceptable multiple, then you have to either top it up or wait for another tenor.

As for FD's on $ account, GTB comes to mind. For a country as big as Nigeria, I'm sure you'll find other banks that do.

ControG:
My question, I want to buy treasury bills worth 120k... which bank sells treasury bill of that range ( my bank zenith.sells Min naof 1m)... can I use writ cheque I'm favour of d bank m buying it.? Can I send some1 2 process d stuff for me as I really do not have time to leave my office that's why it's difficult to check oda banks rates..thx in anticipation of ur response

With that amount, you should be able to invest with First Bank.

@nitrogen 11% for 91days?

That increase was bound to happen considering the consistent rise in inflation rate and uncertainty surrounding election activities.

With such high interest, how long is the tenor you're going for? I'm guessing that's for a year. They're right, banks are usually the ones that do the biddings for you on TBills, and it's one of the safest stress-free investments with "OK" yield.

FADEO:
Thank you so much. I love the way u answered the question. I presently have FD running with stanbic ibtc. Will go there to find out about the TBill but pls before I go I will like to know the range of rate for Tbills for 1M. For FD I got 8.5 percent for 90 days. So wanna know if the Tbill is higher.

See inze's post.

TBill interests are usually higher by 1.5% to 3%, depending on the bank with the FD. Remember your interest on FD is taxed, while TBill isn't.

FADEO:
please house, am an engineer to the core. But at the moment, am getting interested in treasury bills but dont know jack about Tbills. I have read through most of the comments. please I need certain clarification from the gurus in the house about
1. the difference between Tbill and Fixed deposit.
2. the advantages and disadvantages of one in relation to the other.
3. how do I go about investment in Tbills

thank you in advance for the response

1) Fixed Deposit (FD) is taxable. TBill isn't. Interest on FD is paid at the end of the term. TBill interest is paid upfront (i.e. at the beginning of your tenor). Your contract with a typical FD is with your Bank, who has a higher chance at folding and does trades/lending with your money. TBill is with CBN and your bank simply acts as your Rep.

2) For advantages/disadvantages, see points above.

3) Go to your bank and talk to a representative; they'll tell you how it's done. Some may try to dissuade you to go for FD instead as they (the bank) benefit more, but I advise you not to listen.

As far as I know, no discounts, just slightly different interest rates per tenor.

Daewoods:
Thanks @petikal and @confluence, learnt it now.
Also if i want to invest, wud i be given a discount maybe of 5% of the one or two million, meaning i pay in 950k for 1m investment and 1.95m for 2m investment, right?

All rates are calculated annually. That is, divide 365 by the days you wish to invest; then divide the corresponding interest rate by the result.

1mil investment for 91 days at 9.95% rate:

Step 1: 365/91 = 4.01
Step 2: 9.95/4.01 = 2.48%
Step 3: 1mil * (2.48/100) = N24,800

For 182 days on 2mil at 10.3% rate:

Step 1: 365/182 = 2.00
Step 2: 10.3/2 = 5.15%
Step 3: 2mil * (5.15/100) = N103,000

Daewoods:
pls bro if i put in one or two million at the current market value....how much return would it be for 90 or 180 days for either of them? Being trying to work it out myself but not getting it. Thanks in advance!

When you say programming, are you talking about web development/maintenance work or desktop/mobile app development?

Do you have a physical location or is everything done virtually? If it's the latter and with the condition of working from one's personal computer, then is it safe to conclude that applicants need not be residents of Nigeria?

Oladeji, I visited that site. Which type of account do you have with them and have you actually experienced the payouts?

OLADEJIJULIUS: Kindly go to http://simplejoe4x.com/signup.php?r=1574 to invest your money with 3unit in advance account and get #480k in 2months both capital & profit without your presence& there is no risk, many pple have been benefiting from it, call 08156137311

How much percentage is deducted by fund mangers for KGIF?

Also, is the interest rate fixed regardless of amount invested or does it appreciate with volume?

coderXO: I importantly noted @petikal said he was interested in buying land and flipping it in what I would consider "short" term.
If that is the approach, you might find tBills a better option for your investment money.
If you have a longer "outlook", go for land.

I do intend to develop much later, but the intention right now is short-term profit. One strategy is - even after due diligence in purchasing - fence the land and/or lease out it for farming while looking for buyers. I live abroad, so I view building and renting to be significantly more demanding. If I were to build and rent anything, it would be of high quality with no compromise on maintenance and sustainability. But then to accomplish such require I either coordinate it myself physically or hire qualified and reliable individuals. THAT is my long-term goal.

Meanwhile, I'll just exercise patience for now and see what happens after elections.

angelo82: I don't think you should hope so much on T.Bills as the CBN Gov. is bent on reducing rates so as to spur lending but yeah it doesn't make any sense because of inflation and the falling naira….But 13% for Bond for a year is good if you are the waiting type like me…But on T.Bill rates,its 60% possible that the guy will change is stand on it as its policy plans to cut down the rate is very unrealistic and can put pressure on his job….So its better to invest in T.Bills and manage the current rates for now…And after Feb. you can review your options…..I believe there will be need for money/investment come 2015…..

Thanks man. I'll wait and keep fingers crossed. What CBN Governor is pushing for is actually good and practiced in developed nations, but many factors must be in place. On one hand, I'd like to get a higher TB rate, but I'd also like to see a stronger Naira and low inflation - which is indicative of a thriving economy. If the latter is achieved, it'll be good for everyone. Fingers crossed.

Create a LinkedIn profile and join groups that discuss topics on your profession. That way you keep informed of developments in your field and also connect with people of like minds. With time, you will start gaining interests (and calls) from recruiters and hiring managers on opportunities you never knew about!

Angelo, indeed FGN bonds could be another alternative, although the rates are only slightly better (13%) for a longer tenor - 2 years minimum. We saw same rate for TBills last year on 1yr tenor. So you reckon after elections, TBill rates will improve? Factoring current inflation rate at 8.5%, it just doesn't make sense to keep it so low.

princeuk21: welcome and good to have u on the train well i will suggest u stick with paper asset for now the risk on landed property is high and development around the landed property plays a paramount role that also should be put into consideration before getting any. On buying NTB or investing on it, i don't see any major risk apart from an internal war or break up but even if there is a civil war i believe after the war you can get your fund back .

ernie4life: Well it depends, Yea buy a land and sell latter will offer you more interest but the risk is high compared with buying tbills or fixing it.
You could buy a land that has already been sold to another and then you start having issues over the land. You could also buy a land and when you need the money urgently you won't see a cash at hand buyer.
Am not trying to discourage u from buying land, neither am I saying that tbills and fixed income pays more that landed investment, all am saying is the risk is lower and its more secured. That's my view. .

Thank you, folks. Yes indeed, TBills are significantly safer, while there are risks involved in purchasing a land. Assuming one does due diligence, these should be avoided. My intention, however, is purely to buy and flip after say 8-12months, no development. Of course, the longer I keep the property, the better chance of getting more value.

Hmm, with hopes of not diverting the thread, perhaps there's already one on this topic?

I've been following this thread for many months, and finally decided to join Nairaland mostly because of it. Great exchange of knowledge!

So, I'm trying to decide on continuing rolling over my TBill investments or switch to physical assets (Land).

To the gurus, with the current downward trend on interest rates, wouldn't you say purchasing lands - with the intention of selling after a period - is a better investment? Of course, one has to bear in mind the risk factor.

Shares are calculated in cost per unit + broker's fee.

Broker's fee is usually a percentage of the total unit cost you intend to buy/sell.

Example

Assuming a share costs N10/unit, and you want to purchase 1000units. If the broker's fee is 2% of total unit price, you calculate your total cost like this:

Cost of purchase: 1,000units x N10 = N10,000

Broker's Fee: 2% of N10,000 => (2/100) x N10,000 = N200.

You end up paying: N10,200.

If you wish to sell after awhile, you just do the same maths, except the cost per unit and broker's fee may be different.