₦airaland Forum

TONY56:
The first thing you should do is not "to learn how to withdraw at any stage in case of emergency".

First of all, you should find out when your mum is likely to ask for the money and better still, let her know that you want to use the money to invest in TB.

Treasury Bills are risk free but you would be taking a risk of probably losing part of your investments if by the time you want to terminate it, a TB you bought at say 12% has moved northwards to say 18% and there's the likelihood that you would have spent the upfront interest you received.

Haven said that, there's no big deal about termination of Treasury Bills. All you need do is get back to the Branch of the bank you did the investment and inform the TB officer of your intentions.
It's their duty to work out what they feel is the secondary market rate as at that time and you will be so advised. But if you want to dictate your rate of selling, your TB will be on offer till whenever you can get a buyer. The higher the rate above the prevailing Primary market rate, the better your chances of getting buyer or else, your TB will continue to be on offer while you are eager to sell.

TB termination is not something you get to the bank today and hope to get sold that day. It depends on when you get a buyer and at the end of the day, you will also be debited with some transaction charges that is not really big. But as information has reached us about UBA on this thread, if your investment was with them, apart from the transaction charges, you will also be debited by 25% of the upfront interest you received initially.

Note also that if for example you bought at 12% for 91days and you now need to sell at say 18%, after only 30days, you are selling at a loss of 6%, and your account will also be debited with the excess upfront interest you received for 91days instead of 30days i.e you will pay back 2/3 of the upfront interest you received.

So these are all you need to consider before locking in money that is not yours and money that you may need before maturiry of TB. Generally people are advised to use only money they are not likely to need before the tenor they have chosen to avoid embarrassment.

TONY56:
There's no tax at all on Treasury Bills investments o. But there are charges that the banks charge like custodian fees, transaction fees.

Also you may be charged stamp duties & VAT on the transfers from your account as approved by the CBN

Dharniel:
FOR THOSE WHO WOULD BE NEEDING THE GMAT PAST QUESTIONS, PLEASE QUOTE MY MONIKER, AND PLEASE SPELL IT WELL SO I WOULD GET THE MENTION.

IT WOULD BE EASIER FOR ME THAT WAY

I'M JUST TRYING TO HELP IN ANY WAY POSSIBLE...