₦airaland Forum

miella:
No sir! I'm just good in salutations

Okay. That's fine

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miella:
It is better to go for longer tenor especially if the amount you are investing is high.

For example, see the difference between investing N100,000 for 364 days and the same N100,000 for 91 days below:

If you invest N100,000 for 364 days at a rate of 18.65%, your interest will be N18,650.00.

While for 91 days @ 13. 6% your interest will be N3,390.68

Now if you multiply 3,390.68 * 4, your interest will be N13,562.72 (if you invest four times in a year for 91 days each)

So you can see longer tenor will give higher interest. Now imagine if you invest like N4,000,000.00, the difference will be very high

Your Calc is slightly off but your point is valid if we don't take the possibility of rate rising into account

miella:
It is better to go for longer tenor especially if the amount you are investing is high.

For example, see the difference between investing N100,000 for 364 days and the same N100,000 for 91 days below:

If you invest N100,000 for 364 days at a rate of 18.65%, your interest will be N18,650.00.

While for 91 days @ 13. 6% your interest will be N3,390.68

Now if you multiply 3,390.68 * 4, your interest will be N13,562.72 (if you invest four times in a year for 91 days each)

So you can see longer tenor will give higher interest. Now imagine if you invest like N4,000,000.00, the difference will be very high

jaybee3:
Your Calc is slightly off but your point is valid if we don't take the possibility of rate rising into account

I hope you are aware that the discounted interest of N18,650.00 for 364 days can be further re-invested at a discount and so on and so forth. You can also re-invest your N3,390.68 at a discount for 90 days and so on and so forth. At the end of the day, the longer tenor still wins. Shorter tenor is advisable if liquidity is a concern but if liquidity is not a problem, then a longer tenor is advised.

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Stanbic just alerted me. By my rough calculations rate should be around 18.5% for 364 days

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miella:
Congrats!!!

Danke mein freund

amjustme2:
FBN Secondary Rates for 16th June 2017 :

90 Days - 14%
202 Days - 18.15%
237 Days - 18.5%

Please which branch of FBN plus i think that individual branch also matters.

Stanbic alerted me at about 11: 45 a.m and by my calculations I think it's 17.0531% for 182 days tenor.
Still expecting alert for my 364 days tenor

Not really, what could matter is how much are you investing. The rates I got this morning was on 500k assumption.

kwallet:
Please which branch of FBN plus i think that individual branch also matters.

I keep asking what exactly is special abt Primary Market. In the scheme of things i have my strong preference for the Secondary Market. 17 or 17.3% for a 182 day in the Pry market. Meanwhile i can comfortably get 18.25% for a similar tenor or a tenor close to or a little more than 182 days. And again the concern as to whether one's bill will fly in the first place. At the secondary mrkt you get to know yr tenor and rate immediately!

Adiahabasi:
Secondary market for FBN ystdy was 91days- 14%, 120days-17.5%, 134 days-18% as I was abt going for the 134days, the marketing head of the branch came in and told the marketer discussing wt me that there was nothing like that,that I could only get 91days-13.4%,182days- @ 17.4% and 364days-18.3%. I just waka and went for 204days @ 17% with GTB. Got debited immediately,may not sound like a good deal but I'm happy with it, 1st time doing tbills and the interest is enormous as compared with FD which I'm used to.

Hi please how do they calculate the interest? Let's say I have 5 million in Tbills for 3 months. What's the interest on the sum? - 13.4 x 5 million divided by 100= 670000. Is that the interest

@miella please help with my question

TONY56:
Stanbic alerted me at about 11: 45 a.m and by my calculations I think it's 17.0531% for 182 days tenor.
Still expecting alert for my 364 days tenor

Thank God. I finally got debited for the 364 days tenor too by Stanbic.

TONY56:
Stanbic alerted me at about 11: 45 a.m and by my calculations I think it's 17.0531% for 182 days tenor.
Still expecting alert for my 364 days tenor

Thank God. Stanbic finally alerted me in respect of the 364 days tenor too. By my estimation, it's about 18.3815% which though lower than that of last week that was about 18.5%, but still not bad

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Good evening house, I was at GTB today to inquire about their rate, they told me 13.0% for 91 days and 16.5% for 182 days, while Stanbic said 17.3% for 182 days, both are for secondary market.. I just opened an account with Stanbic today but they said till June 28th before they sell Tbills again and that I can't buy immediately.. I don't understand all this o..

What if you pull out after 6months, how much will they pay u?

miella:
Hello sis,

Interest is calculated using this formula: PRT/100 where P is the Principal, R is the Rate and T is the Time.

If you want to invest N5 million for 91 days (3 months) at the rate of 13.4%

Interest will be N5,000,000 * 13.4/100 * 91/364 which will be N167, 500.

However, if you want to go for longer tenor i.e 364 days at the rate of 18.5%, your interest will be N5,000,000 * 18.5/100 *364/364 which will be N925,000.


Accountants in the house, make una put mouth

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miella:
Hello sis,

Interest is calculated using this formula: PRT/100 where P is the Principal, R is the Rate and T is the Time.

If you want to invest N5 million for 91 days (3 months) at the rate of 13.4%

Interest will be N5,000,000 * 13.4/100 * 91/364 which will be N167, 500.

However, if you want to go for longer tenor i.e 364 days at the rate of 18.5%, your interest will be N5,000,000 * 18.5/100 *364/364 which will be N925,000.


Accountants in the house, make una put mouth

Ok thanks. Someone has taught me. I think your calculation is correct

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Greetings to everyone! I'm back with a couple of questions I need the experienced people here to help with.

The first is that how soon does T-bills request in the secondary market get executed? I submitted a written instruction at a GTB branch yesterday and I have yet to see any action being taken.

The second question is a bit tricky: supposing someone invests in T-bills for 364 days and the bank used had gone under (no longer in operation) by maturity, how does that person get his money back? I'm just thinking upside-down, I guess. This thing happens to me sometimes.

Yungbitz:
Stanbic just alerted me. By my rough calculations rate should be around 18.5% for 364 days

I got the alert too. I'm also going to reinvest the interest at the next auction.

Banks...their father; dem no go see anything for my savings again. Shebi dem sabi collect person money anyhow.

It is best to outline and forecast your spending in the next 12 months and decide if you are willing to do long term or short term investment.

There are serious pros and cons with both Investments, it may discourage investors if elaborated. The ultimate still remains "safe investment" which Treasury bills offer.

Try and avoid terminating TBills before maturity and leaving funds idle in your account with your bank.

ezeonlinebiz:
I got the alert too. I'm also going to reinvest the interest at the next auction.

Banks...their father; dem no go see anything for my savings again. Shebi dem sabi collect person money anyhow.

Lol wise decision

gogedda:
Good evening house, I was at GTB today to inquire about their rate, they told me 13.0% for 91 days and 16.5% for 182 days, while Stanbic said 17.3% for 182 days, both are for secondary market.. I just opened an account with Stanbic today but they said till June 28th before they sell Tbills again and that I can't buy immediately.. I don't understand all this o..

Good morning gogedda.
Please be aware there is another auction next week. Endeavour to submit your instruction asap, preferably on Monday; 19 June. There is no auction on 28 June, but there's one on 21 June. I will upload the Treasury bills timetable again for this quarter. Good luck with your application

miella:
No sir! I'm just good in salutations

And salutation is not love

U1:
Greetings to everyone! I'm back with a couple of questions I need the experienced people here to help with.

The first is that how soon does T-bills request in the secondary market get executed? I submitted a written instruction at a GTB branch yesterday and I have yet to see any action being taken.

The second question is a bit tricky: supposing someone invests in T-bills for 364 days and the bank used had gone under (no longer in operation) by maturity, how does that person get his money back? I'm just thinking upside-down, I guess. This thing happens to me sometimes.

Feelamong, amjustme2 or anyone? Any input?

http://www.vanguardngr.com/2017/06/cbn-mop-n200bn-special-tbs-naira-stable-n364


Seems rate will start to drop

Thanks bro, but I thought one can buy from the secondary market anytime regardless the auction date, this is because I am trying to buy from the secondary market. Pls educate me in this, I am a newbie in thus and it will be my first time of investing..

dejiotus:
Good morning gogedda.
Please be aware there is another auction next week. Endeavour to submit your instruction asap, preferably on Monday; 19 June. There is no auction on 28 June, but there's one on 21 June. I will upload the Treasury bills timetable again for this quarter. Good luck with your application

gogedda:
Thanks bro, but I thought one can buy from the secondary market anytime regardless the auction date, this is because I am trying to buy from the secondary market. Pls educate me in this, I am a newbie in thus and it will be my first time of investing..

Yes, you can buy anytime in the secondary market; BUT that is if, it is available. You cannot buy in the secondary market if no one is willing to sell. But you stand a better chance, and more likely to get in the primary market, as long as the bank you submitted your application to, is successful at the CBN auction.

Investnow2017:
I keep asking what exactly is special abt Primary Market. In the scheme of things i have my strong preference for the Secondary Market. 17 or 17.3% for a 182 day in the Pry market. Meanwhile i can comfortably get 18.25% for a similar tenor or a tenor close to or a little more than 182 days. And again the concern as to whether one's bill will fly in the first place. At the secondary mrkt you get to know yr tenor and rate immediately!

Could not agree more with the discount rates being offered in the secondary market (compared to the primary market and not knowing if bids will be successful)... I can only suppose the commercial banks e.g. FBN et al offer these rates to keep the deposits from fleeing from their coffers... it does affect their asset liability balances after all...