pls am a student,,, cn i invest 20,,000 naira in tresury bill ?,,, hux help me

euphoria:

With GTBank, you can't do interbank transfer from a Savings account.

Of course you can. You can transfer to other banks in the country and even do foreign current transfer. If you do internet banking, check the menu on the left hand bar...you'd find transfer to other banks. I do it regularly. Check it again or call GTbank, they'll put u through.

BETTER KEEP YOUR MONEY UNDER YOUR MATTRESS

yogun:

Who says?

U sure can transfer moni to gtbank n oda banks from your savings acct. U need to be physically present, das all

No, you dont have to be physically present. I sent money out lastweek to stanbic chartered from my savings through internet banking. I have transferred to Ecobank, UBA and i do it regulalry. If you have the device called 'TOKEN', then you can do it. And I am not in the country.

I wish I hv money to invest in this stuff

stephenponti: I wish I hv money to invest in this stuff

WHAT ARE YA ? SKEE LO

obadiah777: BETTER KEEP YOUR MONEY UNDER YOUR MATTRESS

why? The bible says money grows wings and flies regardless of where it is.

My fried invested in TB in Diamond Bank and was given 10% for 65days call +234700 300 0000 customer care . or send an email to the bank customer care from their website, tney will advice you to send a scaned copy of your request. wish you well

delors:
No, you dont have to be physically present. I sent money out lastweek to stanbic chartered from my savings through internet banking. I have transferred to Ecobank, UBA and i do it regulalry. If you have the device called 'TOKEN', then you can do it. And I am not in the country.

How do I get the TOKEN device?

Thanks

Wow this thread is very educative , I will place a call to you Diamond Bank ASAP .

Am interested.

Well nice info so far.

From my own experience, I think the interest rate varies from branch to branch. I have mine with first bank. While one branch offered me 7.5%, another branch offered me 10.25%.

Note: this is for TB not fixed deposit

jacobscros: why? The bible says money grows wings and flies regardless of where it is.

Ok nau. Den I go buy cage. Q.E.D.

jacobscros: why? The bible says money grows wings and flies regardless of where it is.

I THINK YOU HAVE WATCHED ONE TOO MANY REDBULL ADVERTS SMDH

obadiah777: I THINK YOU HAVE WATCHED ONE TOO MANY REDBULL ADVERTS SMDH

lol

obadiah777: I THINK YOU HAVE WATCHED ONE TOO MANY REDBULL ADVERTS SMDH

says the guy who types like he's high on an energy drink...

jacobscros: says the guy who types like he's high on an energy drink...

I AM HIGH ON LIFE

Bestluck: Fellow Nlanders and Bankers in the house.

I have funds presently idle in my Current Account which I love to invest in either Fixed Deposit or Treasury Bills, to enable me enjoy higher interest.

As I am presently out of the country, please, how do I go about this without my physical presence in the Bank?

Your candid advice is needed please.

Contact your head office to give you the contacts of your relationship manager/ account officer.

For t/bills, write & scan a simple instruction stating amount, tenor, rate (it's always best to quote bank's rate cos you'll hold them responsible if they quote for you & lose the bid). It's always best to use a non-cot account for your settlement. Follow up on your r/ship mgr to ensure that your bid goes thru.

For fixed deposit, follow the same process but ask the bank for their prevailing rate & negotiate from there. All the best.

Bestluck: Fellow Nlanders and Bankers in the house.

I have funds presently idle in my Current Account which I love to invest in either Fixed Deposit or Treasury Bills, to enable me enjoy higher interest.

As I am presently out of the country, please, how do I go about this without my physical presence in the Bank?

Your candid advice is needed please.

You can do any of them. Rates on TBz is higher but you can not terminate it until maturity. For the booking, the next bidding date is july twenty fourth. You can call the 'contact centre' of your bank to give your instruction, they will then relay your instruction to your account officer so that it could be treated.

I hope this helps.

ritux: Well nice info so far.

From my own experience, I think the interest rate varies from branch to branch. I have mine with first bank. While one branch offered me 7.5%, another branch offered me 10.25%.

Note: this is for TB not fixed deposit

Just to correct you. TB rates are determined by the forces of demand and supply. However CBN tries to cap the rates to a certain ceiling. The primary market holds every two weeks on a Wednesday through auction at CBN. You are expected to bid a Cain rate. Eg the winning rate last week was 11.5% for 182 days. And 11% for 90 days and less. The rates do not vary from Bank branch to branch.

However after the primary bid, you can purchase through the secondary market at the rate offered by your Bank. The good thing about TB is that they pay interst up front. There is no withholding tax on your interest.

Hope this helps.

Some people have given valuable info concerning TB. Just to add. . . The least amount of money that can be used to buy treasury bills is #1,000,000 and the least duration is 90days.

The rate varies depending on the bid and how much the FG has to spare. So, u can bid this week with the rate being 10% and the next two weeks, d new bid becomes higher or lower.

As an individual, I don't bother bidding. I allow the bank bid on my behalf. That way, I won't have to worry if my bid is too high or too low. I take bank's rate.

I've always used Zenith Bank. Theirs is easy and straightforward. All u need do is have an account with them, savings account is preferably. Make sure the money u want to use to buy the bond is in the account, walk into any of their branches, tell them u want to bid for TB. They will give u a form to fill and submit. That's it! U will be told when to come collect your certificate.

To me, TB is much much better than fixed deposit. the rate for fixed deposit is just too low. It was about 3.5% the last time I fixed. I liquidated it after one month and bought treasury bills and got a rate of 10.4%. The only advantage fixed deposit has over TB is that u can fix amount less than 1M and can also liquidate anytime u deem fit.

And again, in TB u get the interest immediately your money is withdrawn from your account. That way, u don't even have to wait till the expirition of the deal to get the interest.

I hope this helps. You can ask more questions. Will try as much as possible to respond.

Op, sorry, I really don't know how u can do that if u are not in Nigeria. I think u should call any of these good bank's customer care line and make enquiries.

bettymafy: Some people have given valuable info concerning TB. Just to add. . . The least amount of money that can be used to buy treasury bills is #1,000,000 and the least duration is 90days.

The rate varies depending on the bid and how much the FG has to spare. So, u can bid this week with the rate being 10% and the next two weeks, d new bid becomes higher or lower.

As an individual, I don't bother bidding. I allow the bank bid on my behalf. That way, I won't have to worry if my bid is too high or too low. I take bank's rate.

I've always used Zenith Bank. Theirs is easy and straightforward. All u need do is have an account with them, savings account is preferably. Make sure the money u want to use to buy the bond is in the account, walk into any of their branches, tell them u want to bid for TB. They will give u a form to fill and submit. That's it! U will be told when to come collect your certificate.

To me, TB is much much better than fixed deposit. Fixed deposit is just too low. Fixed deposit was about 3.5% the last time I fixed. I liquidated it after one month and bought treasury bills and got a rate of 10.4%. The only advantage fixed deposit has over TB is that u can fix amount less than 1M and can also liquidate anytime u deem fit.

And again, in TB u get the interest immediately your money is withdrawn from your account. That way, u don't even have to wait till the expirition of the deal to get the interest.

I hope this helps. You can ask more questions. Will try as much as possible to respond.

Thank you for your input...ßuђ the least duration is not 90 days.
I know of a bid that lasted for 41 days and another currently running that will last for 86days.
In addition,I don't think the least amount is #1,000,000. #100,000 can sail as well.

Onye oma:

Thank you for your input...ßuђ the least duration is not 90 days.
I know of a bid that lasted for 41 days and another currently running that will last for 86days.
In addition,I don't think the least amount is #1,000,000. #100,000 can sail as well.

Are we talking about the same TB? I made my enquiries from different banks concerning the least amount and least duration and I got same info. I had to even ask a friend in CBN, and he said same thing. If it is the TB I know, it is minimum of 90days duration and 1M. That is even the minimum duration that one can see on the form given to the individual to fill at the bank.

Please get your facts right, better still google it.

bettymafy:

Are we talking about the same TB? I made my enquiries from different banks concerning the least amount and least duration and I got same info. I had to even ask a friend in CBN, and he said same thing. If it is the TB I know, it is minimum of 90days duration and 1M. That is even the minimum duration that one can see on the form given to the individual to fill at the bank.

Please get your facts right, better still google it.

You might as well go and inquire for the bid made on 2nd july...I bought it with UBA And the duration is 86days @ 11.13% (I might be wrong abouh the min. Amt cos I bidded with a higher value)... If you care further,I'll show you the certificate...
I'm 100% sure of what am talking about ok... Thanx

Onye oma:

You might as well go and inquire for the bid made on 2nd july...I bought it with UBA And the duration is 86days @ 11.13% (I might be wrong abouh the min. Amt cos I bidded with a higher value)... If you care further,I'll show you the certificate...
I'm 100% sure of what am talking about ok... Thanx

Are u for real? I'm surprised ooo. Does that mean that some banks offer a different package from others? Did u bid by yourself, or the bank did? Did u see the 86day option on the form u filled? I've never seen any duration less than 90days on that form.

Maybe CBN just decided to offer 86 days at that period. Will get more info during my next bid. Thanks.

And for the amount, I'm sure one can't bid with less than 1M. You can also confirm from your account officer.

See the info I culled up from google. It clearly states the minimum duration and amount. I knew I just couldn't be wrong.

TREASURY BILLS

The Nigeria Treasury Bill (NTB) is a short term debt instruments issued by the Federal Government through the Central Bank of Nigeria (CBN) to provide short term funding for the government. They are by nature, the most liquid money market securities and, are backed by the guarantee of the Federal Government. They are usually issued for tenors of 91 days, 182 days and 364 days. Treasury Bills are discounted instruments, which are purchased for a price less than their par (face) value; and at maturity, the holder of the bills is paid the full par value by the government.

Features

•Treasury Bills are discounted instruments (interest is paid upfront)
• Upfront interest can be re-invested to earn compounded returns
• It is a risk free investment (carries the guarantee of the Federal Government of Nigeria)

Investment Options

There are two options available to an investor in Treasury Bills:

Option 1: The purchase of NTBs at the Primary Market (Dutch Auction) that the CBN conducts fortnightly. The modalities are as follows:
• The CBN makes announcements in the newspapers about forthcoming NTBs auction for the tenors that will be on auction usually of 91, 182 and 364 days.
• Potential investors submit their bids, through a Primary Dealer/Market Maker, indicating the amount and tenors of NTBs they are interested in. The minimum amount available for sale at the Dutch Auction is 1,000,000.

• Minimum Treasury Bills investment is N1,000,000.00 (one million naira) only and multiples of N100,000.00 (one hundred thousand naira) only thereafter.
• The investor indicates a bid rate at which he is willing to purchase the NTBs.
• At the Dutch auction, various bids are submitted at various rates and the highest bid at which the total volume of bills on offer is sold closes the auction.
• An investor will be successful at the auction where the bid rate quoted is below or at par with the closing rate.

Uncertainties about the Dutch Auction

There are two uncertainties about the Dutch Auction:
• The uncertainty that an investor’s bid rate could fall below the closing rate making him to earn a yield that is lower than the closing yield;
• And the uncertainty that an investor’s bid is not successful

However, where an investor is unsuccessful at the Dutch auction, we will be willing to provide access to NTBs investment through the secondary market.


Option 2: The second option is the purchase of Treasury bills at the secondary market where there is daily block trading of N250 million each in NTBs between primary dealers/market makers. Foreign investors can now invest and trade in NTBs irrespective of their tenor, both in the primary and secondary markets. This policy will generally increase participation from foreign investors who will seek to earn attractive returns from the market. 

• The investment agent provides custodian services to hold the bills on behalf of the investor until maturity.
• The investor pays 0.75% p.a. of the investment’s face value (for bills bought at the primary auction).


Note:

Our Role:

We must begin to talk to our clients on benefits of investing in Treasury Bills. Educate them on the huge investment opportunities in Treasury Bills. Convince them to invest in Treasury Bills instead of placing their funds in the banks with much lower returns or yield.  Most people do not get  up to 10 % interest on deposits up to N10million with banks  yet they can get up to 13% in 91 day Treasury bill .The marginal rate at the last auction is 13.75% because of the clamour for lowering of interest and MPR rates

Find below sample of Bid summary:

Primary Market

Date of Auction 
6/28/2012
6/28/2012
6/28/2012
6/7/2012
Security Type 
NTB
NTB
NTB
NTB
Tenor
Maturing On 
364
6/27/2013
182
12/27/2012
91
9/27/2012
364
6/6/2013
Amt Offered (N mn) 
60000
52729.22
21838.51
60000
Subscriptions (N mn) 
192,643.85
83,515.14
31,734.91
106,806.00
Tot. Successful (N mn) 
60,000.00
52,729.22
21,838.51
60,000.00
Net Sales (N mn) 
0.00
0.00
0.00
0.00
Range of Bid Rates 
14.7500 - 17.2500
14.5000 - 16.1891
13.5000 - 15.6290
13.0000 - 17.6300
Successful Bid Rates 
14.7500 - 15.6000
14.5000 - 15.3100
13.50000 - 14.0900
13.0000 - 15.6999
Marginal Rate 
15.6
15.31
14.09
15.6999
True Yield 
18.4741
16.5754
14.603

I must say thanks to all the contributors on this thread for it has been very educative. Just a question on the interest rates. Is it per annum or per the tenor period. For example, if I invest 1M at 10% for 90 days, would the interest be 100k after 90 days or 25k (100k divide by 4)?

Once again, thanks for this free financial advise.

bright_edge: I must say thanks to all the contributors on this thread for it has been very educative. Just a question on the interest rates. Is it per annum or per the tenor period. For example, if I invest 1M at 10% for 90 days, would the interest be 100k after 90 days or 25k (100k divide by 4)?

Secondly, I'm surprised that the higher tenors have lower interest rates. I perceive that more persons are willing to book for longer tenors, hence supply forces the rates down. What would be the benefits/constraints for booking longer tenors?

Once again, thanks for this free financial advise.

The interest rate is per annum. So, the interest using the above example will be 25k for 90days.

bettymafy:

The interest rate is per annum. So, the interest using the above example will be 25k for 90days.

Thanks for the clarification. About my second question, I didn't read the rates properly, higher tenors have slightly higher rates.