NL1960:


Before nko. Why should i tie down my funds at 13.01 for 2 years when i can get TB at close to 17% for one year at secondary market.

Let's keep our eyes open and following the saving bond it may go up nest bid or month .

*.

ihedioramma:
Let's keep our eyes open and following the saving bond it may go up nest bid or month .

It may not be much. If you want to have an idea of the rate of the savings bond, keep an eye on the 3 months Treasury bills. It will just be around it. This is because the payment is quarterly which is like buying 3 months bills and reinvesting. The highest the savings bond will go is to catch up with rate for 91 day TB.

It will also be helpful if there is anyway to know the different bank's successful bidding rates. I doubt if this is possible however. Some banks may want to be too greedy, and for example may offer 16 % for 364 day tenor claiming the bank's winning bid is 16.2%. Just being hypothetical here.
I am awaiting response from both Stanbic and Gt bank, (both for 364 day tenor), and I will update the house on the offers I get. I declined the offer from Zenith last week when I was offered a rate of 17.5% when the stop rate for 364 day tenor was 18.558%

unite4real:


It may not be much. If you want to have an idea of the rate of the savings bond, keep an eye on the 3 months Treasury bills. It will just be around it. This is because the payment is quarterly which is like buying 3 months bills and reinvesting. The highest the savings bond will go is to catch up with rate for 91 day TB.

So the 13.01% is for one year? Not as TB 91 days? .

pls when is the next TB bid I seriously need to know. and can some1 help me with the TB calendar fr this year 2017?

ihedioramma:
So the 13.01% is for one year? Not as TB 91 days? .

the 13.01% is for 2 years Savings Bond. Remember that the coupon payment is quarterly which is like 90/91 days. So the rate will behave like a 90 days treasury bills. As long as the 90 days TB is less than 14%, the savings bond whose payment is quarterly cannot exceed 14%.

.....

stephyy:
Please when will I expect my money back..?
I lend it on May 04 2016, and am desperately in need of it now...
How should I go about it?

Lend it to who? feelamong? LOL

your information is sketchy.

PLEASE GUYZ

can some one confirm that STANBIC IBTC...........still offers dsame services as before even with the DMO issue. by services i mean ,still collect less than 50m and still allow us state our individual rates.

my experience from this last auction with sterling bank is that i was allowed to apply directly to the primary market, but wasnt allowed to bid at my own rate.

unite4real:


the 13.01% is for 2 years Savings Bond. Remember that the coupon payment is quarterly which is like 90/91 days. So the rate will behave like a 90 days treasury bills. As long as the 90 days TB is less than 14%, the savings bond whose payment is quarterly cannot exceed 14%.

i never understand you, the quarterly for savings bond is it 91 days and how much will be paid ?

zamirikpo:
PLEASE GUYZ

can some one confirm that STANBIC IBTC...........still offers dsame services as before even with the DMO issue. by services i mean ,still collect less than 50m and still allow us state our individual rates.

my experience from this last auction with sterling bank is that i was allowed to apply directly to the primary market, but wasnt allowed to bid at my own rate.

What rate did they gave you?

unite4real:


Lend it to who? feelamong? LOL

your information is sketchy.

Sorry, meant my NTB

unite4real:


the 13.01% is for 2 years Savings Bond. Remember that the coupon payment is quarterly which is like 90/91 days. So the rate will behave like a 90 days treasury bills. As long as the 90 days TB is less than 14%, the savings bond whose payment is quarterly cannot exceed 14%.

Is it the coupon payment that is quarterly or the interest payment?.

ihedioramma:
What rate did they gave you?

18%..........from the amount i invested which we r adviced not to mention here, i am down by N75,000....going with the last auction rates at 18.69%

zamirikpo:


18%..........from the amount i invested which we r adviced not to mention here, i am down by N75,000....going with the last auction rates at 18.69%

I don't understand you well . They gave you 18% and 75k did what ?

NL1960:


Is it the coupon payment that is quarterly or the interest payment?.

the interest payment is also referred to as coupon payment. For the savings bond, there are 4 coupons in a year. for a 2 year savings bond, there are total of 8 coupons.

ihedioramma:
I don't understand you well . They gave you 18% and 75k did what ?

what i am trying to say is, at 18% interest rate which sterling bank gave me, i am at a loss to the tone of 75k. because if i was allowed to quote my rate which would have been 18.5% or even 18.4%, i would be up by an aditional 75k.

in summary, becos i wasnt allowed to quote my rate, i have lost 75k. which has entered the coffers of sterling bank. that is why i want to find a bank that would allow me quote my rate even with the present DMO rule. hope u get me....

ihedioramma:
i never understand you, the quarterly for savings bond is it 91 days and how much will be paid ?

Yes, quarterly means 90/91 days.

For example, if you buy Savings bond worth N200,000.
13.01% of N200,000 is N26,020.

Since you get your interest payments every quarter, you will have to divide N26,020 by 4 which gives you N6,505.

What this means is that you will be getting N6,505 every 3 months (quarterly) for the savings bond.

Since the bond is for 2 years, you will get such payments 8 times in the course or life span of the bond. This is because, you have 4 quarters in a year. so in 2 years, there are 8 quarters.

Total payment interest for the 2 years is N26,020 X 2 or N6,505 X 8 which gives you N52,040

Now,

If you bought the last Treasury bills with N200,000 at 13.5% for 91 day tenor

your interest will be N27,000 divide by 4 since you bought for a quarter of a year.

interest will become N6,750.

This is how the savings bond compares to the 91 day treasury bills

thank you very much

Houstency:


Have sold Tbills before maturation. Reselling depends on availability of buyers in the secondary market. Be rest assured you wouldn't get the exact amount you invested, also remember you collected your interest upfront, you most probably​ incur loss.. you are at the mercy of the secondary buyer, they would give you their rate and you have the final say if you want their rate, or you may up it a little bit. Also your bank may buy from you and resell in the secondary market for profit.

How do you terminate before maturation?
Just simply write a letter to your branch manager of your intention, and state it in the letter that you should be contacted for the final say.
Regards

zamirikpo:


what i am trying to say is, at 18% interest rate which sterling bank gave me, i am at a loss to the tone of 75k. because if i was allowed to quote my rate which would have been 18.5% or even 18.4%, i would be up by an aditional 75k.

in summary, becos i wasnt allowed to quote my rate, i have lost 75k. which has entered the coffers of sterling bank. that is why i want to find a bank that would allow me quote my rate even with the present DMO rule. hope u get me....

The rate is still better than the rate of 17.5% l rejected from Zenith last week (364 tenor). Unfortunately we are not able to bid our preferred rate again in the primary market if bidding with less than 50.010 million naira

Please house when is the next auction date for FG bond and what were the last rates.

zamirikpo:
PLEASE GUYZ

can some one confirm that STANBIC IBTC...........still offers dsame services as before even with the DMO issue. by services i mean ,still collect less than 50m and still allow us state our individual rates.

my experience from this last auction with sterling bank is that i was allowed to apply directly to the primary market, but wasnt allowed to bid at my own rate.

No. We now have to go with the bank's bidding rate if bidding with less than 50M

dejiotus:


No. We now have to go with the bank's bidding rate if bidding with less than 50M

do u mean @ STANBIC IBTC......

unite4real:


Yes, quarterly means 90/91 days.

For example, if you buy Savings bond worth N200,000.
13.01% of N200,000 is N26,020.

Since you get your interest payments every quarter, you will have to divide N26,020 by 4 which gives you N6,505.

What this means is that you will be getting N6,505 every 3 months (quarterly) for the savings bond.

Since the bond is for 2 years, you will get such payments 8 times in the course or life span of the bond. This is because, you have 4 quarters in a year. so in 2 years, there are 8 quarters.

Total payment interest for the 2 years is N26,020 X 2 or N6,505 X 8 which gives you N52,040

Now,

If you bought the last Treasury bills with N200,000 at 13.5% for 91 day tenor

your interest will be N27,000 divide by 4 since you bought for a quarter of a year.

interest will become N6,750.

This is how the savings bond compares to the 91 day treasury bills

Good analysis but your forgot to factor in or mention the fact that TB is discounted with interest paid upfront which means that for the N200,000 used as example, the actual amount taken from the person is N200,000 - N6,750 = N193,250

unite4real:


Yes, quarterly means 90/91 days.

For example, if you buy Savings bond worth N200,000.
13.01% of N200,000 is N26,020.

Since you get your interest payments every quarter, you will have to divide N26,020 by 4 which gives you N6,505.

What this means is that you will be getting N6,505 every 3 months (quarterly) for the savings bond.

Since the bond is for 2 years, you will get such payments 8 times in the course or life span of the bond. This is because, you have 4 quarters in a year. so in 2 years, there are 8 quarters.

Total payment interest for the 2 years is N26,020 X 2 or N6,505 X 8 which gives you N52,040

Now,

If you bought the last Treasury bills with N200,000 at 13.5% for 91 day tenor

your interest will be N27,000 divide by 4 since you bought for a quarter of a year.

interest will become N6,750.

This is how the savings bond compares to the 91 day treasury bills

I think for NTB 200,000 interest for 91 days will be 27000 at 13.50%?

NL1960:


Good analysis but your forgot to factor in or mention the fact that TB is discounted with interest paid upfront which means that for the N200,000 used as example, the actual amount taken from the person is N200,000 - N27,000 = N173,000

Thank's . 27000 for 91 days at #13.50% ? But savings bond is #6000+ for 91 days?

ihedioramma:
Thank's . 27000 for 91 days at #13.50% ? But savings bond is #6000+ for 91 days?

See this "interest will become N6,750." in unite4real analysis. Interest on NTB of N200,000 for 91 days at 13.5% is N6,750 and not N27,000.

ihedioramma:
I think for NTB 200,000 interest for 91 days will be 27000 at 13.50%?

No. thats not correct. Interest is usually per annum. Remember your simple interest calculation.

N27,000 is annual interest.

Since the duration here is 91 days and not 1 year, you have to divide the N27,000 by 4.

this means that for treasury bills of N200,000 at 13.5% for 91 days, your interest will be N6,750.

NL1960:


See this "interest will become N6,750." in unite4real analysis. Interest on NTB of N200,000 for 91 days at 13.5% is N6,750 and not N27,000.

Ok

unite4real:


No. thats not correct. Interest is usually per annum. Remember your simple interest calculation.

N27,000 is annual interest.

Since the duration here is 91 days and not 1 year, you have to divide the N27,000 by 4.

this means that for treasury bills of N200,000 at 13.5% for 91 days, your interest will be N6,750.

Thank's . 200000 at 18% for one year will be how much ?

NL1960:


Good analysis but your[b] forgot to factor in or mention the fact that TB is discounted with interest paid upfront[/b] which means that for the N200,000 used as example, the actual amount taken from the person is N200,000 - N6,750 = N193,250

Yes, my analysis is not true yield. Its the basic interest. Remember that all interests can be reinvested as well, so the simple analysis did not cover true yield.