₦airaland Forum

Partnerbiz3:
f I invest say 1 million in T bills for 365 days at say 18% and I terminate after 60 days, what's likely to be my penalty?


Freeman67

Feelamong

dotcomnamename:
Can someone answer the above question?

adegokekemi:
Though excluding other charges almost #900 in total

Partnerbiz3:
If the penalty is 5%, is it not better to invest I million in 365 days at 18% and terminate after 91 days than to invest same 1 million for 91 at 15 % from the outset.

I feel it's more profitable despite the penalty.

Partnerbiz3:
Do you mean something like FBN or Stanbic Mutual MMF?
Any difference between MMF (Money market fund and Mutual fund?

Partnerbiz3:
CAN YOU RECONCILE THESE PLEASE?


..
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RealityShot:
Yes.. Stanbic MMF

MMF=money market fund is a type of mutual fund that invests almost all the available funds in TBills.

Mutual funds are of various types..
equity/stocks funds,
real estate funds,
etc

Just do MMf and you can withdraw your money anytime after 30days..

same 18+ percent interest rates..

no need to be worrying bankers with TBills Terminations

feelamong:
In Treasury Bills ..there is no fixed penalty. The bills are just sold off into the market at the best prevailing rate they can get.

Thats why it could be traded on.....if the prevailing interest rate is favourable you could even get capital appreciation when you decide to break your Tbills early

freeman67:
"In the event that you have to liquidate this investment prior to the maturity date indicated above, a penal charge will be applied based on the prevalent rediscount rate."

The statement above is the only thing I have always seen on the proof of investment. I believe it depends on individual banks. The first and only time I ever asked for termination before maturity was when I told them to terminate @ before maturity and they forgot and rolled it over. I lose some money back then because it was sold less than the rate they bought it for me.

You can only get the right info if you contact your bank.


However, the penalty is also dependent on if you have collected your interest upfront or you reinvested it.

If you collected the interest upfront it should be about N180,000, If reinvested with the principal it was to come as N220,000.

Now it is just 60 days out of the initial 364 days you signed as contract meaning you have 304 days left. If your bank decides to sell for you @ the rate you got it(18%) it will be either 180000÷364×60 or 220000÷364×60 which will either give you about 29600 or 36200.


So if you collected your interest upfront what you may likely get back is about 849600 if reinvested you may likely get 1036200.

You you don't get confused. This if they succeed in selling and refunding you after the 60 days ooo.

justsmile:
a quick one pls....does diamond bank run mutual funds too or is it just first bank and ibtc?

Partnerbiz3:
he penalty is 5%, is it not better to invest I million in 365 days at 18% and terminate after 91 days than to invest same 1 million for 91 at 15 % from the outset.

I feel it's more profitable despite the penalty.

Investnow2017:
You got it

.

RealityShot:
No.
Use ibtc..it does not require openingan account at ibtc bank.
you just pay in with pos or atm online from any bank you use already.
FBN fund require you to open an account with them.. Smh..

RealityShot:
Yes.. Stanbic MMF

MMF=money market fund is a type of mutual fund that invests almost all the available funds in TBills.

Mutual funds are of various types..
equity/stocks funds,
real estate funds,
etc

Just do MMf and you can withdraw your money anytime after 30days..

same 18+ percent interest rates..

no need to be worrying bankers with TBills Terminations

Chudymario:
Pls, what's the minimum principal for investment in Stanbic IBTC Money Market Fund?

emmanuelewumi:
First Bank deducts before the bid, the interest will be paid back into your account on Thursday.

sellydion:
Sorry, my bank is saying I can only invest in the secondary market since my capital is not up to N50m.

Their advice is I can buy FGN savings bond. How reliable is this info?

sellydion:
Sorry, my bank is saying I can only invest in the secondary market since my capital is not up to N50m.

Their advice is I can buy FGN savings bond. How reliable is this info?

NL1960:
As anybody been able to submit form for next Wednesday September 13, 2017 primary auction?. I just went to my Stanbic branch to fill the form but was told by the TB official that the mail gotten from head office was that they should await head office advise on when to start collecting forms from customers. Is it that the CBN is yet to advise the banks?. Does anybody know if CBN has released the TB calendar for primary auction?.

adegokekemi:
#5000

Chudymario:
Thank you. Two branches visited in Port Harcourt refused to accept anything below #50,000. Is it possible the minimum principal requirement varies with locations?

Gavrelino123:
Why don't you try other Branches to verify their claims...
And is monday not the deadline for submission of Forms..?

jp130:
I submitted my application for 364days. Let me c hw it goes. Na Godwin

RealityShot:
now you know where all those "sweet" secondary mkt deals come from.

Please NOTE: i said ~5% ..thats "approximately"
it could go higher

Zamiriko please wade in here..

Chudymario:
Thank you. Two branches visited in Port Harcourt refused to accept anything below #50,000. Is it possible the minimum principal requirement varies with locations?

ihedioramma:
@Freeman67,If i invest one million and
reinvest interest (18%)and principal for ten years how much will i get