₦airaland Forum

unite4real:
Around 3,500 naira

bros are you sure?
How did you come about with that calculation because I was thinking at 13.5% d interest for 100k should be 13500. please our Ogas shed more light on this issue because am targeting 450k for 92 days on Wednesday. and am putting my interest to be up to 50k. help my curiosity biko!

Your Interest on 500K for 91 days is still N3500. It seems you are calculating the figures based on MMM interest rate .

You said you are targeting N450K by wednesday and expect a 50K interest, MY broda i like your optimism. If interest rates were like that then the likes of MMM and others wouldn't have made money from Nigerians.

Bluedahlia:
bros are you sure?
How did you come about with that calculation because I was thinking at 13.5% d interest for 100k should be 13500. please our Ogas shed more light on this issue because am targeting 450k for 92 days on Wednesday. and am putting my interest to be up to 50k. help my curiosity biko!

so how much should I expect for 450k or better still what's the formula of calculating the interest please?

unite4real:
Around 3,500 naira

seriously!!! 3,500
Abeg talk better talk cos I am planning on entering this tbill with 100k start up and if its truly 3500,be like say I go chill.

But seriously I need to know how you guys do the calculation of this stuff cod e be like say my head don dey twich. thanks

Bluedahlia:
bros are you sure?
How did you come about with that calculation because I was thinking at 13.5% d interest for 100k should be 13500. please our Ogas shed more light on this issue because am targeting 450k for 92 days on Wednesday. and am putting my interest to be up to 50k. help my curiosity biko!

As I was corrected before, interest rates are calculated annually, the same way rates are a percentage i.e over 100%

Therefore since the tenor is 3 months you'd have to divide by 12 months (1 year)

The formula is the same primary school simple interest formula (cc: Michael18)
Interest = (Principal * Rate * Time) /100
= {450,000 * 13.5 * (3/12)}/100
=₦15,187.

I stand to be corrected.

Please I have 100k and I am planing to invest in treasure bill. Please which bank should I go?

Paramount01:
Please I have 100k and I am planing to invest in treasure bill. Please which bank should I go?

tb is for big boys with millions to invest that when its make sense....ten million will generate 1.8 per year while 1 million will generate 180k this just 15 k permonths u better buy keke nepa or sell recharge card

I went for the TB stuff at Diamond bank today. I wanted to go with their rate and they told me that the least available tenor is 104 days @14%. Please gurus here, do banks fix their own tenor outside CBN 91, 182 and 364 days?

Nowayo4Real:
I went for the TB stuff at Diamond bank today. I wanted to go with their rate and they told me that the least available tenor is 104 days @14%. Please gurus here, do banks fix their own tenor outside CBN 91, 182 and 364 days?

That should be the secondary market.

rookidmart:
As I was corrected before, interest rates are calculated annually, the same way rates are a percentage i.e over 100%

Therefore since the tenor is 3 months you'd have to divide by 12 months (1 year)

The formula is the same primary school simple interest formula (cc: Michael18)
Interest = (Principal * Rate * Time) /100
= {450,000 * 13.5 * (3/12)}/100
=₦15,187.

I stand to be corrected.

Slightly corrected, Time = 91/365 not 3/12.

For primary auction, we have 91, 182, and 364 days.

Thank you

Please is it possible to invest in treasure bill and be collecting your interest every month.

Osahon7:
good morning Sir.. Sir please help a neophye with some....someone that want to invest N10Million in treasury bills for a maturity period of 1year what will be the profit?

actually you could make more than 1.8million.
most people here like to get thier interest paid upfront. but if in your form, you tick re-invest interest. the true yield for one year is over 22%
your 10million naira will yield about 2.1million plus.
the only difference is that you wouldn't get an upfront paid interest. you just get debited the whole 10million and get back 12.1million or more at maturity.
Most guys here don't observe the true yield. we mostly quote the discount rate (stop rate)

Happyfellow147:
Please what's the best form of investment? Estate or financial securities

this is a very tricky question because one is intended for short term and the other long term investment.
an investment in real estate could produce not just steady cash flow but an increase in value of your capital
. T bills however will only give you cash flow. value remains same.
eg a rented house valued at 20million would give an annual rent of 6-8% . Real estate reports quote 6-8% roi for houses in lagos and abuja so therefore, on the average it means
your house will yield 1.2- 1.6million per annum

However if you take that same 20million and invest it currently in tbills. at a true yield of about 22%
i.e
that is investing all, including the upfront interest
your 20million will give you 4.3 million or more annually

Now despite the fact that you will earn more (cash flow) investing in tbills. You cannot neglect the fact that for real estate , the value of your land which your house sits on rises yearly.
so u not just earn cashflow in real estate, your value of land rises.

so weigh your options bro. are you in for the long term or short term? Can you handle the rigors that come with real estate investment, getting rents from tenants isn't easy as it is on paper :-) Goodluck

I need somebody that will put me through in this treasure bill investment

chukzyfcbb:
this is a very tricky question because one is intended for short term and the other long term investment.
an investment in real estate could produce not just steady cash flow but an increase in value of your capital
. T bills however will only give you cash flow. value remains same.
eg a rented house valued at 20million would give an annual rent of 6-8% . Real estate reports quote 6-8% roi for houses in lagos and abuja so therefore, on the average it means
your house will yield 1.2- 1.6million per annum

However if you take that same 20million and invest it currently in tbills. at a true yield of about 22%
i.e
that is investing all, including the upfront interest
your 20million will give you 2.1million or more annually

Now despite the fact that you will earn more (cash flow) investing in tbills. You cannot neglect the fact that for real estate , the value of your land which your house sits on rises yearly.
so u not just earn cashflow in real estate, your value of land rises.

so weigh your options bro. are you in for the long term or short term? Can you handle the rigors that come with real estate investment, getting rents from tenants isn't easy as it is on paper :-) Goodluck

I'm guessing a typo.... from 20 million, he can get about 4.4m if true yield now 2.1m.

Thanks.

battleaxe:
I'm guessing a typo.... from 20 million, he can get about 4.4m if true yield now 2.1m.

Thanks.

oh yes thanks a lot for the correction.
22% true yield on 20million is 4.4million gross profit.
after deduction of vat and those charges. his net profit should end up at 4.3million. a whopping 2.6million difference from the same cash flow earned from real estate investment

Analyst in the house
what wiil be best interest rate for 364 days in the next coming auction bid (February 15)?
I need to submit my bid to GTBank earliest today/tomorrow. I'm rooting for 18.5% but need opinions before i submit
Oh, this is my first time bidding. learnt a lot from this thread

jeebz:
That should be the secondary market.

Ok

Bluedahlia:
bros are you sure?
How did you come about with that calculation because I was thinking at 13.5% d interest for 100k should be 13500. please our Ogas shed more light on this issue because am targeting 450k for 92 days on Wednesday. and am putting my interest to be up to 50k. help my curiosity biko!

you are correct that 13.5% of 100K is N13,500. That is interest per annum. Since the request for information was for 3 months which is a quarter of 1 year. you have to divide the N13,500 by 4 to get 3 month's interest and that's N3,375.

hope you understand now? @michael18

chukzyfcbb:
this is a very tricky question because one is intended for short term and the other long term investment.
an investment in real estate could produce not just steady cash flow but an increase in value of your capital
. T bills however will only give you cash flow. value remains same.
eg a rented house valued at 20million would give an annual rent of 6-8% . Real estate reports quote 6-8% roi for houses in lagos and abuja so therefore, on the average it means
your house will yield 1.2- 1.6million per annum

However if you take that same 20million and invest it currently in tbills. at a true yield of about 22%
i.e
that is investing all, including the upfront interest
your 20million will give you 4.3 million or more annually

Now despite the fact that you will earn more (cash flow) investing in tbills. You cannot neglect the fact that for real estate , the value of your land which your house sits on rises yearly.
so u not just earn cashflow in real estate, your value of land rises.

so weigh your options bro. are you in for the long term or short term? Can you handle the rigors that come with real estate investment, getting rents from tenants isn't easy as it is on paper :-) Goodluck

i like the way u broke dis down, in my opinion, a youngster(below 35yrs), shouldnt think of tying down 20million in real estate if thats all the money he has, because an investment like NTB can double that some in 5yrs.....without any hassles(if rates remain constant or increase), even a profit of 8.6m in two years of NTB investment isnt bad, bearing in mind that u almost have to do nothing to earn it, plus the fact that u have all the time to do ur normal job.

u could actually invest prfits from ur NTB in real estate,while holding ur capital. so for now am routing for the money market.

its a matter of choice anyways.....

You did justice to my question. I'm female though. Don't have money to build now but want to know which is better should my cash flow increase

chukzyfcbb:
this is a very tricky question because one is intended for short term and the other long term investment.
an investment in real estate could produce not just steady cash flow but an increase in value of your capital
. T bills however will only give you cash flow. value remains same.
eg a rented house valued at 20million would give an annual rent of 6-8% . Real estate reports quote 6-8% roi for houses in lagos and abuja so therefore, on the average it means
your house will yield 1.2- 1.6million per annum

However if you take that same 20million and invest it currently in tbills. at a true yield of about 22%
i.e
that is investing all, including the upfront interest
your 20million will give you 4.3 million or more annually

Now despite the fact that you will earn more (cash flow) investing in tbills. You cannot neglect the fact that for real estate , the value of your land which your house sits on rises yearly.
so u not just earn cashflow in real estate, your value of land rises.

so weigh your options bro. are you in for the long term or short term? Can you handle the rigors that come with real estate investment, getting rents from tenants isn't easy as it is on paper :-) Goodluck

chukzyfcbb:
this is a very tricky question because one is intended for short term and the other long term investment.
an investment in real estate could produce not just steady cash flow but an increase in value of your capital
. T bills however will only give you cash flow. value remains same.
eg a rented house valued at 20million would give an annual rent of 6-8% . Real estate reports quote 6-8% roi for houses in lagos and abuja so therefore, on the average it means
your house will yield 1.2- 1.6million per annum

However if you take that same 20million and invest it currently in tbills. at a true yield of about 22%
i.e
that is investing all, including the upfront interest
your 20million will give you 4.3 million or more annually

Now despite the fact that you will earn more (cash flow) investing in tbills. You cannot neglect the fact that for real estate , the value of your land which your house sits on rises yearly.
so u not just earn cashflow in real estate, your value of land rises.

so weigh your options bro. are you in for the long term or short term? Can you handle the rigors that come with real estate investment, getting rents from tenants isn't easy as it is on paper :-) Goodluck

Good points but the question has always been if the person has such a pool of funds to make the real estate investment. If i have 10m, i will rather invest such in 1-year TB and earn 1.8m than go and invest in real estate. 10m will not build any reasonable property now unless it is face-me-i-face-you type of house in a crowded area. With my 1.8m, i will comfortably rent a flat for 500k per annum.

zamirikpo:
i like the way u broke dis down, in my opinion, a youngster(below 35yrs), shouldnt think of tying down 20million in real estate if thats all the money he has, because an investment like NTB can double that some in 5yrs.....without any hassles(if rates remain constant or increase), even a profit of 8.6m in two years of NTB investment isnt bad, bearing in mind that u almost have to do nothing to earn it, plus the fact that u have all the time to do ur normal job.

u could actually invest prfits from ur NTB in real estate,while holding ur capital. so for now am routing for the money market.

its a matter of choice anyways.....

same here , as a young man with such money I will prefer tbills. the yield from real estate would come in handy when I am getting weak and frail to work (from 50yrs. so it could serve as a sort of retirement package. My own choice anyways

chukzyfcbb:
same here , as a young man with such money I will prefer tbills. the yield from real estate would come in handy when I am getting weak and frail to work (from 50yrs. so it could serve as a sort of retirement package. My own choice anyways

Its always better to build a diversified Asset.

Invest in Property, Tbills, Shares, Bonds and even in Bitcoins/Dollars (to diversify from Naira Assets)

If you keep all this in mind, you will understand why all of them serve their own different purposes.

last week, i ran into a very good short term business that had a good one time pay off...I ran to my bankers for loan, can you believe they refused to accept my small house for the loan. But when i said i have Treasury bills, i was given the loan within 2 days.

In all, just plan to have all of it...then you can reallocate from one class to another based on the prevailing economic conditions/environment

feelamong:
Its always better to build a diversified Asset.

Invest in Property, Tbills, Shares, Bonds and even in Bitcoins/Dollars (to diversify from Naira Assets)

If you keep all this in mind, you will understand why all of them serve their own different purposes.

last week, i ran into a very good short term business that had a good one time pay off...I ran to my bankers for loan, can you believe they refused to accept my small house for the loan. But when i said i have Treasury bills, i was given the loan within 2 days.

In all, just plan to have all of it...then you can reallocate from one class to another based on the prevailing economic conditions/environment

Good Morning Feelamong. Please what is your suggested rate for 364 days?

ozymes:
Good Morning Feelamong. Please what is your suggested rate for 364 days?

would rather wait till close of business on Monday to see what the secondary markets are up to first and also see if there will be any more OMO or not

feelamong:
Its always better to build a diversified Asset.

Invest in Property, Tbills, Shares, Bonds and even in Bitcoins/Dollars (to diversify from Naira Assets)

If you keep all this in mind, you will understand why all of them serve their own different purposes.

last week, i ran into a very good short term business that had a good one time pay off...I ran to my bankers for loan, can you believe they refused to accept my small house for the loan. But when i said i have Treasury bills, i was given the loan within 2 days.

In all, just plan to have all of it...then you can reallocate from one class to another based on the prevailing economic conditions/environment

Even though I understand d point u made, but u must have a huge cash hull to diversify dis much,infact u r already a rich fella, to invest in more than two places,like u mentioned with substantial gains.

Like uve always done pls let's get ur tots on our options with limited funds,say 10 - 20m. How did u get to a place where u can now diversify

zamirikpo:
Even though I understand d point u made, but u must have a huge cash hull to diversify dis much,infact u r already a rich fella, to invest in more than two places,like u mentioned with substantial gains.

Like uve always done pls let's get ur tots on our options with limited funds,say 10 - 20m. How did u get to a place where u can now diversify

You dont need a mountain of cash to diversify into all those assets..

modest Investments into all is OK..

although at the age we all are, the ideal thing is to put more into the more risky and aggressive investments.

Before now I did more of shares, but now i do more of Tbills and Dollars/bitcoins

incidentally since i finished my first property i have not invested into property again

[quote author=feelamong post=53551498]would rather wait till close of business on Monday to see what the secondary markets are up to first and also see if there will be any more OMO or not.[color=#006600][/color]Ok thank you. I expect to hear from you. And please is it still safe to drop the bid at my bank by Tuesday 14th @ 10.am?

Hi Guys...
Great job here...
Is there anyone passionate and quite knowledgeable about T-bills and Bonds that can put up good stuff regularly.
We have a Finance and Investment portal requiring your services pro-bono - www.InvestNaira.com
Pls DM toninatho@gmail.com
Thank you!