Hello guys. Can somebody please help me with this? I placed an order for T-bill worth 520k some 2 days ago at Stanbic IBTC. I just got an alert that 506,646 has been debited from my account and the balance of about 13k given to me. Is the 13k supposed to be the only interest i am getting on the 520k investment for 91 days? Please explain cos this is weekend and I cant get to my banker until Monday. Thanks.

kufreabasio: Hello guys. Can somebody please help me with this? I placed an order for T-bill worth 520k some 2 days ago at Stanbic IBTC. I just got an alert that 506,646 has been debited from my account and the balance of about 13k given to me. Is the 13k supposed to be the only interest i am getting on the 520k investment for 91 days? Please explain cos this is weekend and I cant get to my banker until Monday. Thanks.

I had the same experience as well today , I am very sure its your intrest.. reading thru the thread on this topic I learnt your intrest is paid upfront

kufreabasio: Hello guys. Can somebody please help me with this? I placed an order for T-bill worth 520k some 2 days ago at Stanbic IBTC. I just got an alert that 506,646 has been debited from my account and the balance of about 13k given to me. Is the 13k supposed to be the only interest i am getting on the 520k investment for 91 days? Please explain cos this is weekend and I cant get to my banker until Monday. Thanks.

T-bills are sold at a discount. The difference between what you paid for it and its worth at maturity represents your interest for that 91-day period.

kufreabasio: Hello guys. Can somebody please help me with this? I placed an order for T-bill worth 520k some 2 days ago at Stanbic IBTC. I just got an alert that 506,646 has been debited from my account and the balance of about 13k given to me. Is the 13k supposed to be the only interest i am getting on the 520k investment for 91 days? Please explain cos this is weekend and I cant get to my banker until Monday. Thanks.

Yes, that's the interest. It would have been about 52,000 naira for ~1 year tbills.

Please when is the next bidding. My bank disappointed me. GTBank Account officers are just dull, they don't reply emails from their clients. They don't expect me to be at the Bank for transactions that can be done over email.

guru25: Please when is the next bidding. My bank disappointed me. GTBank Account officers are just dull, they don't reply emails from their clients. They don't expect me to be at the Bank for transactions that can be done over email.

Should be 2 weeks from the date of the last auction (23-10-2013). So disappointing that most banks do not respond to emails regularly. It's a very big shame.

pls how do I get an update of the latest interest rate and is it centrally determined or depends on each bank and what advantage does this TB has over FD

kufreabasio: Hello guys. Can somebody please help me with this? I placed an order for T-bill worth 520k some 2 days ago at Stanbic IBTC. I just got an alert that 506,646 has been debited from my account and the balance of about 13k given to me. Is the 13k supposed to be the only interest i am getting on the 520k investment for 91 days? Please explain cos this is weekend and I cant get to my banker until Monday. Thanks.

In that case, treasure bill is useless. I fixed deposited 500k in first bank and got 11% interest per annum which was about 8k for 60 days and 12k for 90days. Not much difference. They would have made TB to about 20% interest.

chuqudy:

In that case, treasure bill is useless. I fixed deposited 500k in first bank and got 11% interest per annum which was about 8k for 60 days and 12k for 90days. Not much difference. They would have made TB to about 20% interest.

if you place 500k on fixed deposit, the highest interest they'll give you is 8% ie if you know some one. And that interest will be subject to withholding tax(VAT 10%) which does not apply to TBills. Note that most banks won't take 500k on fixed deposit. Diamond bank for instance begins with 5million a the least.

@Mpeace, please do u know the interest rate for FD in Diamond bank for say 5 million?

chuqudy:

In that case, treasure bill is useless. I fixed deposited 500k in first bank and got 11% interest per annum which was about 8k for 60 days and 12k for 90days. Not much difference. They would have made TB to about 20% interest.

Now, this isn't good enough. You keep 520, 000 Naira somewhere for a whole 91 days and all you are getting is 13, 000 interest.

Mpeace :
if you place 500k on fixed deposit, the highest interest they'll give you is 8% ie if you know some one. And that interest will be subject to withholding tax(VAT 10%) which does not apply to TBills. Note that most banks won't take 500k on fixed deposit. Diamond bank for instance begins with 5million a the least.

First bank gave me 11%. According to them, the minimum is 500k. I did not know any body in first bank. It depends on your agreement with them.

chuqudy:

First bank gave me 11%. According to them, the minimum is 500k. I did not know any body in first bank. It depends on your agreement with them.

congrats. But I've never heard First Bank going beyond 9%(except when CBN's official rate for fixed funds was 15% under soludo), you must be very lucky. But note that the interest you got is subject to VAT, so at the end of the day, you are left with only 9.90% as actual interest which even comes at the end of the investment, unlike TBills where interest is paid upfront. But I doubt if First bank will give you more than 9% today. They are relatively comfortable, and not into desperate marketing.

Barka d Sallah to you All.Am new to this.I need some little understanding About T/B

My bank offers me 8.5% -10% for Fix depo.
After going through dis tread I think TB Offers same.but no Charges.

What do u advice me to do as my FD would mature soon.

And also which is more risky?

Any Certificate or paper work or reciept to show for the T/B once it's done?

Any Maximum amount An individual is allowed to purchase?

Is it adviseable i put all my egg on 1 basket in this case or i buy FD and T.B

Thank U all

@ Timothy,@ Chiqudy and kufreabasio: the clear difference between treasury bills and FD is the interest is paid to u immediately(upfront) and without withdrawing withholding tax while FIxed deposits require you to wait till when it matures before u can get ur interest. Also your interest is subject to withholding tax.

now imagine this scenario:ten million naira tb done January 2014 will get u upfront interest of 1million naira plus. That means u have money to start ur year with while others are yet to know what the year has to offer.in your profit books u ve made a million for the year without having worked.

Trying same thing with a fixed deposit will see u getting ur money by December 2014.

Also when I started Tbills the interest rates were as high as 14 percent for 91 days.and still has thr potential,so far as sanusi is on his fight against inflation.

@kufreabasio:u said someone keeps 520000 somewhere and gets 13k. Well u got ur 13 k immediately and ready to use, whereas if it was FD it will be after the 90days and they deduct tax from it.
If u want to milk more from money markets increase the volume u invest.

@timothy:ur choice of investment between treasury and FD should be weighed on ur cash flow needs(how often u need funds) and
How much u are willing to invest.Both are safe,Tbills after CBN s guarantee is also guaranteed by the bank u are buying from,especially if u buy from the secondary market.
Yes there is an offer letter just like FD with the banks letter head on it.Abi Bank go do u wayo?

Hope u all can now make ur decisions more informedly now.

@oga Feelamong:the new levels now na commercial papers.will appreciate any info u can get on it. Thank you sir.


there are so many money market instruments for people with money to earn more by making their money work for them but..........ignorance........

please,which one is commercial papers? can someone through more light on it.I will quickly switch over to it if it is better than Tbills.People should forget about fixed deposit you can compare it with Tbills.

collinsobinna: @ Timothy,@ Chiqudy and kufreabasio: the clear difference between treasury bills and FD is the interest is paid to u immediately(upfront) and without withdrawing withholding tax while FIxed deposits require you to wait till when it matures before u can get ur interest. Also your interest is subject to withholding tax.

now imagine this scenario:ten million naira tb done January 2014 will get u upfront interest of 1million naira plus. That means u have money to start ur year with while others are yet to know what the year has to offer.in your profit books u ve made a million for the year without having worked.

Trying same thing with a fixed deposit will see u getting ur money by December 2014.

Also when I started Tbills the interest rates were as high as 14 percent for 91 days.and still has thr potential,so far as sanusi is on his fight against inflation.

@kufreabasio:u said someone keeps 520000 somewhere and gets 13k. Well u got ur 13 k immediately and ready to use, whereas if it was FD it will be after the 90days and they deduct tax from it.
If u want to milk more from money markets increase the volume u invest.

@timothy:ur choice of investment between treasury and FD should be weighed on ur cash flow needs(how often u need funds) and
How much u are willing to invest.Both are safe,Tbills after CBN s guarantee is also guaranteed by the bank u are buying from,especially if u buy from the secondary market.
Yes there is an offer letter just like FD with the banks letter head on it.Abi Bank go do u wayo?

Hope u all can now make ur decisions more informedly now.

@oga Feelamong:the new levels now na commercial papers.will appreciate any info u can get on it. Thank you sir.


there are so many money market instruments for people with money to earn more by making their money work for them but..........ignorance........

. Thanks for this piece, if I invest in TB, does it mean my bank will not charge me at all? If yes, what is their interest then?

In addition to Collinsobinna's contribution, T-bills are considered to have zero risk because they are guaranteed by the FG (CBN) unlike fixed deposits which are not secured depending on the company offering it. For example, I am not sure if those who had FD with the defunct Savannah bank got their money back- maybe not all. Also, those investing in FD with stockbroking firms & Co. may be playing gamble with their monies.

@Chiqudy, you have to consider risk factor safety of your investment capital as well as the timely payment of interest. If you are risk-averse then T-bill is for you otherwise there are other high interest paying investment for those willing to take heavy risk. The lower the risk, the lower the interest rate- that's what you get from T-bills. But if you invest much in T-bills you will definitely smile with no fear of losing your capital.

I have had bad experiences with Fixed deposits. For example, the interest rates are not constant. The bank can offer as high as 11% at the initial stage of investment just to attract customers but they will gradually be reducing the rates subsequently and without your consent. If you complain, they will tell you that rates have fallen and there is nothing you can do apart from moving your funds but then na you lose because they must have traded with your money before paying you the interest. Threaten to sue them and they will show you the part of their Terms and Conditions that says interest rates are subject to change at the Bank’s discretion without prior notice to customers- but they don't tell you this at the start of investment.

@lawmann;easy Bro,we dnt want to leap before we look.do we?guess not.

@foandt:really,Oga,really. Are u pitying the banks?
Do u know how much interest the bank earns on sitting idle funds in people's current accounts?

Have u forgotten when they collected ATM charges,SMS charges,and all other charges?

Well they have an interest but if they didnt,I wnt be bothered bout them.they have a million ways of earning money.

their interest is they earn a big commission do selling on behalf of cbn,then thy also earn a 0.0025 percent of ur transaction,which is very little that u wnt even notice it,while u are happy,packing ur interest money in ur bag.

collinsobinna: @lawmann;easy Bro,we dnt want to leap before we look.do we?guess not.

@foandt:really,Oga,really. Are u pitying the banks?
Do u know how much interest the bank earns on sitting idle funds in people's current accounts?

Have u forgotten when they collected ATM charges,SMS charges,and all other charges?

Well they have an interest but if they didnt,I wnt be bothered bout them.they have a million ways of earning money.

their interest is they earn a big commission do selling on behalf of cbn,then thy also earn a 0.0025 percent of ur transaction,which is very little that u wnt even notice it,while u are happy,packing ur interest money in ur bag.

Thanks bro, I just observe that we are not talking about bank charges (not knowing that it is not significant) and I know that our banks do nothing for free. Thanks

collinsobinna: @ Timothy,@ Chiqudy and kufreabasio: the clear difference between treasury bills and FD is the interest is paid to u immediately(upfront) and without withdrawing withholding tax while FIxed deposits require you to wait till when it matures before u can get ur interest. Also your interest is subject to withholding tax.

now imagine this scenario:ten million naira tb done January 2014 will get u upfront interest of 1million naira plus. That means u have money to start ur year with while others are yet to know what the year has to offer.in your profit books u ve made a million for the year without having worked.

Trying same thing with a fixed deposit will see u getting ur money by December 2014.

Also when I started Tbills the interest rates were as high as 14 percent for 91 days.and still has thr potential,so far as sanusi is on his fight against inflation.

@kufreabasio:u said someone keeps 520000 somewhere and gets 13k. Well u got ur 13 k immediately and ready to use, whereas if it was FD it will be after the 90days and they deduct tax from it.
If u want to milk more from money markets increase the volume u invest.

@timothy:ur choice of investment between treasury and FD should be weighed on ur cash flow needs(how often u need funds) and
How much u are willing to invest.Both are safe,Tbills after CBN s guarantee is also guaranteed by the bank u are buying from,especially if u buy from the secondary market.
Yes there is an offer letter just like FD with the banks letter head on it.Abi Bank go do u wayo?

Hope u all can now make ur decisions more informedly now.

@oga Feelamong:the new levels now na commercial papers.will appreciate any info u can get on it. Thank you sir.


there are so many money market instruments for people with money to earn more by making their money work for them but..........ignorance........

Thanks for this piece. But please enlighten us on the other instruments (bolded)

Thanx very much And i'll terminate my FD and op for T.B

timothy001: Thanx very much And i'll terminate my FD and op for T.B

Hi Bro, just a soft reminder; don't forget there are pros and cons like the man mentioned above...Terminating a fixed deposit investment is easier than terminating a TB and U can only have treasury bills running for a minimum of about 90 days except the banks sell to you from their purse.

Now, concerning commercial papers; I remember GTB told me years back that the minimum investment required was N10M and it is basically like fixed deposit but the main difference is that you are not charged withholding tax when your investment matures. I hope this helps someone.

Am really confuse here......went to my bank last we and met some account officers and I was told minimum amount for Tbills is GTB is 5million naira...Pls guys hw tru is dis??

RichYoungRuler:
Hi Bro, just a soft reminder; don't forget there are pros and cons like the man mentioned above...Terminating a fixed deposit investment is easier than terminating a TB and U can only have treasury bills running for a minimum of about 90 days except the banks sell to you from their purse.

Now, concerning commercial papers; I remember GTB told me years back that the minimum investment required was N10M and it is basically like fixed deposit but the main difference is that you are not charged withholding tax when your investment matures. I hope this helps someone.

Anyone with practical experience with commercial papers in Nigeria should please share.
It sounds interesting also.
Thanks.

yaso: Am really confuse here......went to my bank last we and met some account officers and I was told minimum amount for Tbills is GTB is 5million naira...Pls guys hw tru is dis??

May be the particular person you met there was not well informed about it,that branch has it's own individual policies...or the person you met intend to discourage you.cos I know some1 dat did N650,00 with them not more than 3 months ago at 11%..

you just have to try another branch if you must use GTB

What a thread! Nice one everyone.
I have a question, I have a bank account with zenith but I don't have an account officer. is it possible to request online for the treasure bills. Or do I need to be present to sign any document.

I have been trying to reach them on phone and they don't respond to emails.

Chillisauce: What a thread! Nice one everyone.
I have a question, I have a bank account with zenith but I don't have an account officer. is it possible to request online for the treasure bills. Or do I need to be present to sign any document.

I have been trying to reach them on phone and they don't respond to emails.

You don't have to be physically present. You can send a written instruction to your bank if the money you plan to invest is already in your bank account. It's a pity they don't respond to your calls and emails. Keep trying until you are able to get a response. Also, try and ask your bank for the contact details of your account officer including his/her mobile phone number. This will make things a lot more easier for you in subsequent transactions.

yaso: Am really confuse here......went to my bank last we and met some account officers and I was told minimum amount for Tbills is GTB is 5million naira...Pls guys hw tru is dis??

Apparently the bank officers were trying to dissuade you. Try another branch or bank. First bank accept 100K minimum and they've been wonderful so far.

Elai147:

You don't have to be physically present. You can send a written instruction to your bank if the money you plan to invest is already in your bank account. It's a pity they don't respond to your calls and emails. Keep trying until you are able to get a response. Also, try and ask your bank for the contact details of your account officer including his/her mobile phone number. This will make things a lot more easier for you in subsequent transactions.

Thanks Elai, I guess they are still on vacation. I forgot about that. Will try again tomorrow.

Elai147:

Apparently the bank officers were trying to dissuade you. Try another branch or bank. First bank accept 100K minimum and they've been wonderful so far.

Hi gurus,has anybody invested in Tbills using UBA bankis it a good place to invest on?Secondly,I heard it will be sold on 23rd of this month by CBN,is it advisable to wait till then?and can it be run for 30 or 60days,pls what is the interestest for 100k and the np of days transaction.doese it mean that after 3months the money invested comes back to ur account or can it be rolled over or added some amt of money to increase the interests that's will accue frm it.pls house is there any way it can be done to get the capital incase of emergencies. thanks.