MrTour:
Just a quick info, the 14% you got is good, imagine if you had waited looking for an 18% offer and the funds stay in your account idle for the next one or two weeks, by the time you get the 18% in two weeks time, in hindsight you actually lost money from interest earnings even though the rate is higher.

It is always best to lock in early with the best possible rate, waiting a week extra for better rate makes a difference.

Shakitibob0:
mama ...please did you get this at the secondary market? I think its about time I started using my stanbic account

Houstency:


Sir, hope it ain't Stanbic IBTC? So, we I can join you in damage control lol.

That being said, scan through this attached PDF file, it may provide one or two insights.

Investnow2017:


I don't negotiate. I determine the minimum rate below which i will not accept and ask them to tell me what they have in their system. Dont behave like you are new in the biz. Give them the impression that you know what you are doing and that you are familiar with the market.
Yesterday, i was at the bank and the maximum i could get was below 17%. I rejected it and waited for today Friday because i know that good bargains come up here and there in the secondary market. Sometimes little patience can help.
Its just a pity though that in the great majority of cases officers handling TB are hardly ever friendly. My account officer who used to call on me in my office in the past hardly pick my calls these because i do not do Fixed Deposit anymore

Ovie2011:
I was thinking Stanbic IBTC because I don't know if their first bank branches in benin will be friendly at me on this.

Investnow2017:

.
Its just a pity though that in the great majority of cases officers handling TB are hardly ever friendly. My account officer who used to call on me in my office in the past hardly pick my calls these because i do not do Fixed Deposit anymore

Investnow2017:

THIS QUESTION AGAIN:

Can commercial banks buy Treasury Bills, say ones of 364 days tenors which normally attract a higher yield and break same into smaller tenors to sell at lower yields? If they can, will this not have negative implications for retail investors going forward?

These questions have become necessary because the increasing awareness about treasury bills is making banks to lose considerable amount of deposits as many are moving their fixed deposit funds to invest in TB.

Please, gurus help us analyse this situation for the benefit of everyone!

Amjustme2, FM4real06, others please help put mouth for this talk.

Investnow2017:


Poor. Why so low? Always request to see the ranges available in their system. Making the officer in charge a close parley can help him or her to open up and you will be surprised to see better deals in their computer. Anyway size of fund and tenor are a factor kind of.

Always have a range in mind. Like me, for any tenor on the secondary market, anything less than 18% is unacceptable!

rosybabyy:
Upon his money ?

mindtricks:


Abi o.

iluminati:
if i invest 1,000,000 for 6 months how much will i get on treasury bill?

junglep:
Is 40 mill too much to put in tb or should I buy a property instead? I need cash flow without stress of managing tenants so I'm thinking maybe tb. However I'm worried about inflation. Can anyone advise me on this.

freeman67:


It depends on the rate you get. Average 182 days rate these days revolve around 17% So you should about N85,000.

junglep:
Is 40 mill too much to put in tb or should I buy a property instead? I need cash flow without stress of managing tenants so I'm thinking maybe tb. However I'm worried about inflation. Can anyone advise me on this.

iluminati:


The profit is too small na. i rather put the money in MMM and get 300k per month plus 100k referral bonus. total 400k

inze:


. . . except if the property can give you close to 10mil annually. Else, you might want to try this for a start and continue if you like: invest 40mil in Treasury Bill for a year and compound the interest. Let's take 18% as rate:

18% of 40mil by 366days gives you 7.2mil. Takeout upfront interest and re-invest same day from same account:
18% of 7.2mil by same 366 gives you 1,296,000. Repeat process again:
18% of 1.2mil by same 366 gives you 233,280.

Now at the end of the 366days period, your interest in will amount to 8,729,280 and you'd still have your 40mil breathing in your account.

Investnow2017:

THIS QUESTION AGAIN:

Can commercial banks buy Treasury Bills, say ones of 364 days tenors which normally attract a higher yield and break same into smaller tenors to sell at lower yields? If they can, will this not have negative implications for retail investors going forward?

These questions have become necessary because the increasing awareness about treasury bills is making banks to lose considerable amount of deposits as many are moving their fixed deposit funds to invest in TB.

Please, gurus help us analyse this situation for the benefit of everyone!

inze:


. . . except if the property can give you close to 10mil annually. Else, you might want to try this for a start and continue if you like: invest 40mil in Treasury Bill for a year and compound the interest. Let's take 18% as rate:

18% of 40mil by 366days gives you 7.2mil. Takeout upfront interest and re-invest same day from same account:
18% of 7.2mil by same 366 gives you 1,296,000. Repeat process again:
18% of 1.2mil by same 366 gives you 233,280.

Now at the end of the 366days period, your interest in will amount to 8,729,280 and you'd still have your 40mil breathing in your account.

iluminati:


The profit is too small na. i rather put the money in MMM and get 300k per month plus 100k referral bonus. total 400k

junglep:
Is 40 mill too much to put in tb or should I buy a property instead? I need cash flow without stress of managing tenants so I'm thinking maybe tb. However I'm worried about inflation. Can anyone advise me on this.

inze:


. . . except if the property can give you close to 10mil annually. Else, you might want to try this for a start and continue if you like: invest 40mil in Treasury Bill for a year and compound the interest. Let's take 18% as rate:

18% of 40mil by 366days gives you 7.2mil. Takeout upfront interest and re-invest same day from same account:
18% of 7.2mil by same 366 gives you 1,296,000. Repeat process again:
18% of 1.2mil by same 366 gives you 233,280.

Now at the end of the 366days period, your interest in will amount to 8,729,280 and you'd still have your 40mil breathing in your account.

chukzyfcbb:


Someone has advised you compound ur interest, now I propose you another idea. why not combine the two? Yes use one stone to kill two birds,lol.

with 40m. u can buy a very good title land in Lagos mainland (if u live in Lagos), c/o fenced and all for 20m. while u invest the other 20m.

Now this land will appreciate in value, while your treasury bills investment at say 18% can yield 3.5m for you annually, Infact you can gradually use the Tbills upfront interest to start up building project on the land or better still money for personal use :-) :-D

However if u take that whole 40m to erect a structure in Lagos, lemme use Lagos because I am more familiar with the terrain, I want to Guarantee you that you will not earn more than 4m naira as House rent (if all tenant cooperate oh). Now u see why I propose a HYBRID plan for you.

Earn 3.5m - 4m from 20m investment of It T-bills
same time watch your 20m land appreciate annually

junglep:
Is 40 mill too much to put in tb or should I buy a property instead? I need cash flow without stress of managing tenants so I'm thinking maybe tb. However I'm worried about inflation. Can anyone advise me on this.

alezzy13:


Fixed deposit have been condemned and demonized on this thread, and I dont think its fair. Banks need money to survive and pay their workers.

If everyone stopped maintaining fixed deposits what would happen to banks? I'm not sure we want to see another round of retrenchment into the already supersaturated labour market.

My sister used to work for one these banks, and I know the kind of intense pressure they face to meet their targets.

BTW wouldn't consider myself a guru, just an opinion based on my understanding.