Speedyconnect15:

NOBODY IS SURE OF THE 25% ish.

He later said he invested 1,159,000 NOT 1,590,000. at 9.85% for 91 days.

So even with the 25% penalty, custody fee (0.35% max) and processing ( usually 100 naira); IT CANNOT amount to 11k.

Note: No vat is charged on tbills.


All are mere conjectures.

I am sure of Access though. I asked several workers but they had no idea. I had to liquidate as a form of experiment after I mailed the head office and got a clueless response.

Cc
Comparedbest

Btw, I like your diction sir . Stellar

CompareDBest:
Just before you do that, new evidence has emerged since our reply that suggests

> Stanbic IBTC got best rate for 364 days (14.95%) on 13 Feb Primary Market Auction, followed closely by GTB (14.85%)...possibly UBA too based on the competition beating rates they are currently offering in the secondary market: https://www.nairaland.com/878880/treasury-bills-nigeria/696
> SkyAngel recently asked Stanbic to reinvest interest although the option was not on the form, and they did, at least in the secondary market: https://www.nairaland.com/878880/treasury-bills-nigeria/697#75781784
> logically, because it is not an option on the form does not mean you should rule something out. Ask your bank with the top rates before you try elsewhere
> Recent rates from FirstBank have not been encouraging: https://www.nairaland.com/878880/treasury-bills-nigeria/697#75752873 . But check as it moves daily in the secondary market

Note banks that lead in Primary Market (Stanbic, GTB) do not always lead in secondary (UBA). Lead is not divine right, and changes daily/weekly. We implore you to compare any rate offered to you to the rates from some other top banks. And always ask their customer care directly if they can reinvest interest...we suspect the answer will usually be A BIG FAT YES!

eghos24:
Please guys. I saw someone once saying you don't need to have an account with stanbic before using them for treasury bills but when I went to the bank yesterday day. They said I need to open an account first.

Speedyconnect15:

Thanks for the analysis sir.
Your analysis appears to be the case ordinarily.

I am inclined, however, to believe that this may be merely theoretical or conjectures. I have yet to see anyone whose liquidation before maturity panned out the way analysed above.

My experience with Access was different from analysis above.
Other banks may differ..

At any rate, the uncertainty surrounding the outcome liquidation before maturity may be because of crass ignorance of bankers who give incorrect info. And also because of investors who have never tried liquidating and just rely on same incorrect info and pass it as correct.

Experience is the best teacher here I guess.

ahiboilandgas:
I don't only earn salary also earn profit and dividen

tritritri:



That canada express level ? Is it true an agent ? Pls am interested . ty

ahiboilandgas:
u don't need and agent...what u need is the ielts test,certificate evalution and listed work expirence ....if u points is above 450 your get your permant residency
...google Canadian express entry ....very self explanatory......

tritritri:



Thanks for xplaination , God bless

valacious:


Your grammatical structure and tenses is 10/10. Just thought I should point that out.

needful:


Am already in Canada and I travelled thru that means 3yrs ago. You can also look into provincial nomination to buttress ur point. Provinces like Nova Scotia, Prince Edward Island, New Brunswick, and Ontario will nominate you if u fall within their required occupation in demand. I forgot to add Saskachewan. Moving to Canada is the best thing ever. Best decision for me so far. Alot of jobs, peace of mind etc. Plus you will make money if you have an eye for a biz.

CompareDBest:
The biggest cost of purchasing tbills is typically Custody/Safekeeping fee. GTBank's charge is 0.1% which is fair. You will potentially get lower from CBN/FGN's licensed custodians: https://www.cbn.gov.ng/out/2014/bpsd/licensed%20custodians.pdf . This is not certain. By our calculation Stanbic & Union charge one of the lowest; likely 0.05% + 5% VAT. If FCMB figure 0.015% checks out, then it will be the lowest we know of. See our earlier post for more details: https://www.nairaland.com/878880/treasury-bills-nigeria/690#75466434

Unlikely, but if you have been charged COT in the transaction cos your money sits in a current account, then consider moving your money to a savings account before future t-bills purchases.

Note you should consider rate as well as cost. For example, if you get 14.95% with high initial cost and 14.25% from another with lower outgoings, the 0.7% extra yield might more than make up for the higher cost.

lolaluv1:
Please. When is the next t bills auction?

cutedharmee:
Pls house I did invest in NTB and money was deducted on d 27th of November for 90days. When is d liquidation pls

CompareDBest:
We admire your analysis sir/ma! Can you give specifics regarding your Access pre-liquidation so we have a better real life example for reference?

There is 5% VAT on some/all fees depending on the bank and market you buy tbills from (not on the upfront interest itself). However, even if we assume this applied and his Rediscount Rate was the 11% common in FirstBank’s secondary market at the time, it still does not add up to 11k. We agree with your assessment; note also we believe the 25% penal charge probably comes from Fixed Deposit early termination treatment, which is 20% forfeiture of interest earned for FirstBank.

We gave the example on that link not for the specifics, but because it states with the clearest evidence yet that you can lose part of your capital. If it helps, we have asked most commercial banks too and they echo that truth, in their own words, clear as day, black and white.

HenryWilliams:
Evening y'all
I just opened a stanbic ibtc account today in anticipation of getting 364 day TBs on Wednesday. Just after opening, I asked the pretty customer care lady if they re-invest the interest.. She said NO. I was a bit shocked because I read it somewhere here that FBN and Stanbic allows such. She however clarified that Secondary Markets interests are re-investible but not Primary Market.
Now my dilemma. Should I go on with the transaction on Wednesday knowing they won't reinvest?

HenryWilliams:
Evening y'all
I just opened a stanbic ibtc account today in anticipation of getting 364 day TBs on Wednesday. Just after opening, I asked the pretty customer care lady if they re-invest the interest.. She said NO. I was a bit shocked because I read it somewhere here that FBN and Stanbic allows such. She however clarified that Secondary Markets interests are re-investible but not Primary Market.
Now my dilemma. Should I go on with the transaction on Wednesday knowing they won't reinvest?

TotoNaRubber:
Do you know if any of the banks allow you to eat your cake and have it, this means if you wanted to invest N100k and the interest on the investment is N15k, so you deduct the N15k before hand and then the bank only debited 85k from your account, at the end of the tenure they pay you back N100k.

TotoNaRubber:
Do you know if any of the banks allow you to eat your cake and have it, this means if you wanted to invest N100k and the interest on the investment is N15k, so you deduct the N15k before hand and then the bank only debited 85k from your account, at the end of the tenure they pay you back N100k.

OgogoroFreak:
it's same thing na. If you don't withdraw the 15k it would still be left in ur acct after the bank debit the 85k.

Ifelove1:
UBA does it... But their minimum is 500,000

SifonAbasi:
Hello house, pls can one buys Tbills from a bank h/she does not have an acct with? Also is National ID, PVC or Intl passport a requirement? Thanks

CompareDBest post.8=75878097:
"Some people" are correct. There is NO cap to your loss. With the extreme example you gave, you can lose a good % of your capital. Let's do some simple math without taken charges into consideration:

capital - N100k
tenure - 364 days
discounting - 10%pa
rediscounting - 18%pa

You get N10k upfront, N90.u i
8.
huh



.iuu
U
U

k deducted. N100k to be credited on 364th day
Day 100, pre-liquidation - some banks (not sure if all) tell you the rediscounting rate so you can reconsider or accept & write formal instruction
The instruction needed to terminate your investment would be N100k @ 18% for 264 days. Your capital and upfront interest needs to fund all of it. That is give N(100*18/100*264/365)= approx. N13k upfront interest to the secondary market buyer.
So you get N110k - N13k = N97k. But, we did not consider charges, so you actually get less

This is why if you scour through this thread, you will tire before you find any of those stalwarts of investment you asked this question saying they pulled their funds halfway. It is an unwritten rule. Understandably, it is only broken as a last resort.

However, the opposite situation can also arise, and some investors use these as opportunities. Imagine you had 1bn and rates fell by 2% in a week; in 7days you could earn 2% of 1bn by rediscounting in the secondary market, give or take some charges.

Akerewe:
dre is nothing like 5% vat on tb investment either prymary or secondary market, also no 25% penal charges whatsoever on earlier liquidation...