₦airaland Forum

policy12:
One thing u shu know is the longer the days the higher it interest rate. If u want ur money before the term day you losse some amount of money.

dotcomnamename:
Thanks. But my questions are not answered.

policy12:
It depend on when you wan to use ur money then you book for such period. If you won't use ur money for any urgent project u can leave it even for a whole year bearing in mind that the interest rate will be high as 18%.

They don't charge you fee and the risk is very minimal if there is any which I don't think there is any.

dotcomnamename:
What is the risk?

policy12:
The only risk I know is if the bank collapse then u won't have ur access to ur money.

dotcomnamename:
I heard Mutual Funds is paying more than Treasury Bills. Is there any risk in Mutual Funds too? I have no idea about them. I only invested in Fixed Deposit.

policy12:
The risk involves with MF is that u all share the loss and gain together because its a pool of investors money use to get stocks, bonds, etc.

All funds carry some level of risk. With mutual funds, you may lose some or all of the money you invest because the securities held by a fund can go down in value. Dividends or interest payments may also change as market conditions change.
A fund’s past performance is not as important as you might think because past performance does not predict future returns. But past performance can tell you how volatile or stable a fund has been over a period of time. The more volatile the fund, the higher the investment risk.

dotcomnamename:
So apparently, Treasury Bills is 100% safer than Mutual Funds?

policy12:
I will say yes from experience.

dotcomnamename:
What is the best maturity days for Treasury Bills?

91 days, 182 days or 364 days? Is there any risk.

Is there any fee that must be paid before you get your money back like Bonds?

dotcomnamename:
I heard Mutual Funds is paying more than Treasury Bills. Is there any risk in Mutual Funds too? I have no idea about them. I only invested in Fixed Deposit.

dotcomnamename:
I have decided to invest on the Treasury Bills for 182 days (6 months). As a diaspora customer i have been advised to forward a signed instruction to do that. But i still don't understand something, what if i am not satisfied with the percentage they bid for me and how will i know? Because i am investing like 5 million and i don't want to hear stories o! Just want to test the TB with 5m and see how it goes

TB gurus, what do you think?

RealityShot:
Gurus are found on the linked thread: www.nairaland.com/878880/

You can only specify your percentage if you invest
51 million or more.

dotcomnamename:
Thanks. Whats the current rate for 182 days? The guy at first bank told me that the last auction for 183 days was 17.5%. And that available for now is 185 days at 17.10%per annum or 178 days at 18% per annum. I don't understand what first bank mean by that. To my understanding, it also mean 183 days is for 17.10%, which is 6 months, is that correct?

Then i called again after like an hour and the person i spoke to said available for now is 17.25 for 182 days. I don't understand first bank at all.

RealityShot:
Just visit that thread and read up.. All the answers are there.

Officially, it's only available fortnightly... At about 17.5 or so..
What they are offering you is secondary market rates..

If you want to buy in primary market,then tell them that's what you want and write the letter instructing them to buy for you in the next auction.

This however means you will not know the rates at which they will get it till the purchase is complete.

That's why some people prefer secondary market. There you know the rate before you order but the rates vary greatly and you might never get a full tenor.

dotcomnamename:
Thanks, i've signed up for the secondary market.