Guys, I plan to visit my bank today.
Can anyone give me a hint of what the current rates are for 180 and 365 day tenures?

Thanks in advance

Chukzyfcb:
I have a question to ask, feelamong your input will be highly appreciated. my questions goes thus

Say for example I want to invest 10,000naira and the discounted rate is 10%. I know fully well that the bank will debit 9000 and leave 1000 as the upfront interest right? Well, what if I had ONLY 9000 in my account but in my t.bills form I wrote a bid of 10,000naira knowing fully well it's just 9000 that will actuallu be debited, do you think the bid will be successful. Because I am thinking of playing a fast move that may pay off nicely.

Incase you still don't get my questions: lemme make a story
Say Mr chuks walks to the bank to invest in t.bills and on his form he wrote that he will like to invest with the sum of 110,000 naira at a discount rate of 10%. He knows if his bid is successful the government will just debit 100,000 and pay him 10,000 upfront interest. But the thing is mr chuks has just the exact 100,000naira that will be deducted, nothing more nothing less. So Will his bid be successful, yes or no?

Advice is needed.

It is possible only if you go with your own bid rate. By requesting a rate of 10%, you are sure the expected debit amount will not be more than what your balance is. But if you choose to go with bank's rate, the expected debit may not be what you expect. It may be higher with a lower interest rate. For banks that insist you don't bid for yourself, this may not be tenable

Guys, I understand bids for Tbills are done bi-weekly. Is this week a bidding week?
I am planning to visit my bank and place some bids if this is the right week.
Also, I'll appreciate any hint on the range of rates for the 182 and 364 days tenures.

@feelamong,

Please i need to know when the 15.54% Feb2020FGN Bond coupon payment will be made in August. I understand there will be the monthly auctioned on the 17th August. I have 15.54% Feb2020FGN coupons to be paid in August. Will i expect the payment before the auction? i am thinking of applying for this month auction but i want to know if my coupon can drop in before the placement of my bid. feelamong please ur response

vacanci:
@feelamong,

Please i need to know when the 15.54% Feb2020FGN Bond coupon payment will be made in August. I understand there will be the monthly auctioned on the 17th August. I have 15.54% Feb2020FGN coupons to be paid in August. Will i expect the payment before the auction? i am thinking of applying for this month auction but i want to know if my coupon can drop in before the placement of my bid. feelamong please ur response

The Coupon is due on the 13th of this Month...

Yes there is FGN Bond auction on the 17th

feelamong:


The Coupon is due on the 13th of this Month...

Yes there is FGN Bond auction on the 17th

Thank you very much feelamong.

13th is Saturday and 17th is Wednesday. Will i get the payment early enough to use it for the months bid for the 17th? I dont know if coupons can be paid on Saturdays.

vacanci:


Thank you very much feelamong.

13th is Saturday and 17th is Wednesday. Will i get the payment early enough to use it for the months bid for the 17th? I dont know if coupons can be paid on Saturdays.

If Coupon date falls on a weekend or non working date...the payment date is the next working date!

It should hit ur account on that date (15th) more than enough time to bid at the 17th Aug Auction date

feelamong:


If Coupon date falls on a weekend or non working date...the payment date is the next working date!

It should hit ur account on that date (15th) more than enough time to bid at the 17th Aug Auction date

Thank You

unite4real:


It is possible only if you go with your own bid rate. By requesting a rate of 10%, you are sure the expected debit amount will not be more than what your balance is. But if you choose to go w ith bank's rate, the expected debit may not be what you expect. It may be higher with a lower interest rate. For banks that insist you don't bid for yourself, this may not be tenable

thanks for your reply but you still dot get my question. I am not asking if my bid rate will be accepted. I am asking if my bid amount will be accepted even when I have less but have the exact discount amount. my questions lies with the bid amount not the rate. feelamong I still your reply.

Please I want to know if it is a wise decision to open an account and bid for T-bill thru stanbic ibtc. Also can anyone please confirm the duration it takes to receive the treasury bill certificate. because I need it to back an application.Thank you.

Chukzyfcb:



thanks for your reply but you still dot get my question. I am not asking if my bid rate will be accepted. I am asking if my bid amount will be accepted even when I have less but have the exact discount amount. my questions lies with the bid amount not the rate. feelamong I still your reply.

Your question was answered. Let me further explain by analysing.

First of all, your calculation is wrong. 10% of 110,000 is 11,000. Subtract this from 110,000 will give you 99,000. You are expected to have 99,000 in your account.

Option1
1. You have 99,000 in your account
2. You place a bid for 110,000
3. You bid 10% (10% of 110,000 is 11,000. difference is 99,000)
4. You place the bid because you expect to be successful with a 10% rate which you placed yourself without going with bank rate. You did this because 10% discounted will enable your account to have the 99,000 debited

Option 2
1. You have 99,000 in your account
2. You place a bid for 110,000
3. You go with the bank's rate (prevailing rate)
4. With this bank's rate, whatever the auction close with the bank is what applies to you. Lets assume the auction closed at a successful 8%, after discounting, (8% of 110,000 is 8,800. difference is 101,200)

That is why i told you that it can only be possible if you either place your own bid rate or your successful rate if you go with the bank's rate is not less than your calculated 10%.

i have assumed the insignificance of custodian and other fees.

unite4real:


Your question was answered. Let me further explain by analysing.

First of all, your calculation is wrong. 10% of 110,000 is 11,000. Subtract this from 110,000 will give you 99,000. You are expected to have 99,000 in your account.

Option1
1. You have 99,000 in your account
2. You place a bid for 110,000
3. You bid 10% (10% of 110,000 is 11,000. difference is 99,000)
4. You place the bid because you expect to be successful with a 10% rate which you placed yourself without going with bank rate. You did this because 10% discounted will enable your account to have the 99,000 debited

Option 2
1. You have 99,000 in your account
2. You place a bid for 110,000
3. You go with the bank's rate (prevailing rate)
4. With this bank's rate, whatever the auction close with the bank is what applies to you. Lets assume the auction closed at a successful 8%, after discounting, (8% of 110,000 is 8,800. difference is 101,200)

That is why i told you that it can only be possible if you either place your own bid rate or your successful rate if you go with the bank's rate is not less than your calculated 10%.

i have assumed the insignificance of custodian and other fees.

oh thanks . now you are more clearer. I am confident in my chosen bid rate .now u have clearly stated that I can actually invest more than what one actually has in the acct. so long I meet the discount amount.
thanks, now it means it makes no sense to say you want to invest with one million naira at your own rate because that's all you have in account when one can actually play smart an invest with something higher if he has donw his calculatiozns well. thanks again bro

@chukyzfcb, I don't understand y u would want to bid higher than the amount u have, how does it benefit u ? Rates r not determined by how much u r bidding with.

Am just wondering if am missing something here....

This calculation is a problem to many.
Look at this, somebody did a job in A firm and realized 1.2million. he added 5% vat which is 60000 so his total figure was 1260000. The money was paid in full and government took their 5% which is 63000 and not the 60000 he calculated earlier. YOU CAN NOW SEE THAT HIS 5% IS WRONGLY CALCULATED.

Now if I have 502000 and wish to involve all the money in TB at 17% (may be for 364days) what figure should I get? Very simple
1. subtract that rate from 100 = 83
2. divide that your money by this figure and multiply by 100. = (502000/83)*100 =604819

3. Now if I have 502000 to invest, I can confidently fill in 604819. now 17% of 604819 is 102819.
4. then 604819-102819 = 502000. which is the amount they need to withdraw from my account.
5. funny enough if u do this, you will have to pay for service charge over the counter. hahaha sometimes mathematics even though it's true, it is far from reality.
6. One good question to ask Is WHAT IS THE GAIN?

If I used 502000, I will have 85340 which is my 17% dormant on my account.

but when I used 604819, I will have 0 on my account but after maturity I will get 102819 extra instead of 85340.

tormjerry:
I'm new to this TBills.ill like to ask some questions
Does anyone have an idea about about FBN rate?
Also, does GTB accept below #1M for T Bills?
About the issuance certificate\letter,will it be issued immediately or I'll have to go back to the bank for it?

While I do not know anything about FBN rate, I know something about TBills in GTB.
As at mid 2015 I invested 500K in TBill having been told by a branch of the bank in Lagos that they'd accept nothing less than that amount.
When I asked whether they issued certificates their response was that they don't but I will be notified of the transaction if successful.

Agbaletu:

I did the last one with Zenith Bank. What do you want to know?

I would like to know the least acceptable amount for investment in either bank. Thanks

Do fidelity bank allow you to pick your rates?

zamirikpo:
@chukyzfcb, I don't understand y u would want to bid higher than the amount u have, how does it benefit u ? Rates r not determined by how much u r bidding with.

Am just wondering if am missing something here....

its a move I wan to attempt that's why I came here to ask if its possible. the advantage is that you will make more money. u can throw a bid of 1.1million when you have just 1million in the account as long as you meet the discount amount, that's my point. so instead your money grows at 1m, it grows higher. what I still don't get is where the upfront interest will come from. knowing fully well that my account has been cleared empty. that's a part unite 4real didn't explain

Rizin:
This calculation is a problem to many.
Look at this, somebody did a job in A firm and realized 1.2million. he added 5% vat which is 60000 so his total figure was 1260000. The money was paid in full and government took their 5% which is 63000 and not the 60000 he calculated earlier. YOU CAN NOW SEE THAT HIS 5% IS WRONGLY CALCULATED.

Now if I have 502000 and wish to involve all the money in TB at 17% (may be for 364days) what figure should I get? Very simple
1. subtract that rate from 100 = 83
2. divide that your money by this figure and multiply by 100. = (502000/83)*100 =604819

3. Now if I have 502000 to invest, I can confidently fill in 604819. now 17% of 604819 is 102819.
4. then 604819-102819 = 502000. which is the amount they need to withdraw from my account.
5. funny enough if u do this, you will have to pay for service charge over the counter. hahaha sometimes mathematics even though it's true, it is far from reality.
6. One good question to ask Is WHAT IS THE GAIN?

If I used 502000, I will have 85340 which is my 17% dormant on my account.

but when I used 604819, I will have 0 on my account but after maturity I will get 102819 extra instead of 85340.

in other words you are saying its possible so it means the upfront interest will be zero. because the whole account has been cleared when bid goes successful if yes, then that's a new move because no one here has mentioned doing something like that

Rizin:
This calculation is a problem to many.
Look at this, somebody did a job in A firm and realized 1.2million. he added 5% vat which is 60000 so his total figure was 1260000. The money was paid in full and government took their 5% which is 63000 and not the 60000 he calculated earlier. YOU CAN NOW SEE THAT HIS 5% IS WRONGLY CALCULATED.

Now if I have 502000 and wish to involve all the money in TB at 17% (may be for 364days) what figure should I get? Very simple
1. subtract that rate from 100 = 83
2. divide that your money by this figure and multiply by 100. = (502000/83)*100 =604819

3. Now if I have 502000 to invest, I can confidently fill in 604819. now 17% of 604819 is 102819.
4. then 604819-102819 = 502000. which is the amount they need to withdraw from my account.
5. funny enough if u do this, you will have to pay for service charge over the counter. hahaha sometimes mathematics even though it's true, it is far from reality.
6. One good question to ask Is WHAT IS THE GAIN?

If I used 502000, I will have 85340 which is my 17% dormant on my account.

but when I used 604819, I will have 0 on my account but after maturity I will get 102819 extra instead of 85340.

Thanks for the clarification. I fully understand the points cleared. But are there terms or connotation to these.am sowi cos am a newbies.

While this move may work with some banks, it may not work with others.

Some banks debit the whole funds initially then pay interest within 3 days while some do otherwise.

Chukzyfcb:

its a move I wan to attempt that's why I came here to ask if its possible. the advantage is that you will make more money. u can throw a bid of 1.1million when you have just 1million in the account as long as you meet the discount amount, that's my point. so instead your money grows at 1m, it grows higher. what I still don't get is where the upfront interest will come from. knowing fully well that my account has been cleared empty. that's a part unite 4real didn't explain

Ihavespoken:

While this move may work with some banks, it may not work with others.

Some banks debit the whole funds initially then pay interest within 3 days while some do otherwise.

After 48 to 72 hours



You are right, most banks will debit your account for the amount you bid for and credit your account with the upfront interest.

Rizin:
This calculation is a problem to many.
Look at this, somebody did a job in A firm and realized 1.2million. he added 5% vat which is 60000 so his total figure was 1260000. The money was paid in full and government took their 5% which is 63000 and not the 60000 he calculated earlier. YOU CAN NOW SEE THAT HIS 5% IS WRONGLY CALCULATED.

Now if I have 502000 and wish to involve all the money in TB at 17% (may be for 364days) what figure should I get? Very simple
1. subtract that rate from 100 = 83
2. divide that your money by this figure and multiply by 100. = (502000/83)*100 =604819

3. Now if I have 502000 to invest, I can confidently fill in 604819. now 17% of 604819 is 102819.
4. then 604819-102819 = 502000. which is the amount they need to withdraw from my account.
5. funny enough if u do this, you will have to pay for service charge over the counter. hahaha sometimes mathematics even though it's true, it is far from reality.
6. One good question to ask Is WHAT IS THE GAIN?

If I used 502000, I will have 85340 which is my 17% dormant on my account.

but when I used 604819, I will have 0 on my account but after maturity I will get 102819 extra instead of 85340.

Have you ever tried this before? Where do you buy your Treasury Bills.

You can play the game, i have always sone this. But you need to speculate the stop rate right. If the stop rate goes beyond your speculation and the amount in your account ia not enough to cover the discounted value then you lose it.

Chukzyfcb:
I have a question to ask, feelamong your input will be highly appreciated. my questions goes thus

Say for example I want to invest 10,000naira and the discounted rate is 10%. I know fully well that the bank will debit 9000 and leave 1000 as the upfront interest right? Well, what if I had ONLY 9000 in my account but in my t.bills form I wrote a bid of 10,000naira knowing fully well it's just 9000 that will actuallu be debited, do you think the bid will be successful. Because I am thinking of playing a fast move that may pay off nicely.

Incase you still don't get my questions: lemme make a story
Say Mr chuks walks to the bank to invest in t.bills and on his form he wrote that he will like to invest with the sum of 110,000 naira at a discount rate of 10%. He knows if his bid is successful the government will just debit 100,000 and pay him 10,000 upfront interest. But the thing is mr chuks has just the exact 100,000naira that will be deducted, nothing more nothing less. So Will his bid be successful, yes or no?

Advice is needed.

GT Bank.

Your upfront interest is what you have earned by not keeping the face value of the investment in your account. But upon maturity you will get the face value credited to your account.

manie:



Have you ever tried this before? Where do you buy your Treasury Bills.

walexlo78:
GT Bank.

Your upfront interest is what you have earned by not keeping the face value of the investment in your account. But upon maturity you will get the face value credited to your account.

FBN will deduct the total amount you bid for, and credit you with the interest after 48 hours. I got a 14.4% for 91days during the last bid, 500k was deducted from my account and the interest of about 17k was paid on Friday 5th August 2015.

manie:



Have you ever tried this before? Where do you buy your Treasury Bills.

if it works? YES
If I have tried it and it worked for me? YES. but with first bank and never with GTBank regardless of my preachings.

The truth is that it's not easy and as you are marketing your business so also the banker. DON'T FORGET THAT THEY ARE THERE JUST BECAUSE YOUR MONEY IS THERE. That is why they will tell you that 5% 6months fixed deposit is better that 15% 91 days TB. And some banks will only pay you interest if only you did not withdraw from your account in 3 months.

The truth is that it works but,
1. you have to make sure you leave the minimum amount needed in your account. Also the service charge
2. You have to tell them exactly what you wrote and persuade them into accepting what you wrote (please don't think that they don't know just that you know the country we are in )
3.Make sure your application pass the customer service desk. you know how they do, they will just check your account and tell you INSUFFICIENT FUNDS, Without knowing how you intend running your package.
4. you have to come back here and share your testimonies then send you testimony gift/offering to the account I will give to you.
thank you

LuzSp:



While I do not know anything about FBN rate, I know something about TBills in GTB.
As at mid 2015 I invested 500K in TBill having been told by a branch of the bank in Lagos that they'd accept nothing less than that amount.
When I asked whether they issued certificates their response was that they don't but I will be notified of the transaction if successful.

Thanks

olujaidi:


Read the first 10 pages of the thread. Or even the last few pages. The questions you asked have been dealt with several times

Ok.thank you

You can demand for your investment letter from the bank. I get mine for every TB investment. Its as good as a certificate.

tormjerry:

Thanks