slord: MR feelamong sir,thanks so much.i was able to send my bid in yesterday(gtb).i rili appreciate ur help,thanks

U welcome bro!

dont forget to come pay ur tithe at our ministry o!

What is BA?

walcolm: What is BA?

Please what is BA?

Dollops:

Please what is BA?

Ok in layman's terms... BAs is when you lend to a company with a bank acting as a guarantor that your money would be paid back to you at the expiration of the tenor.

For banks its like taking deposit from you at an agreed interest rate just like in any Fixed deposit;
However it is supposed to be money given to another party with a bank acting as guarantor. So most times its only Blue chips that actually do BAs using banks as guarantors or in another way, Banks raise the money for Blue chips from investors like you and I at a rate...

hope i made some sence sha! Been a long time i left banking work!

yeah, thanx for the break down...but what does the acronym BA stand for?

walcolm: yeah, thanx for the break down...but what does the acronym BA stand for?

BANKERS ACCEPTANCES

feelamong:

Ok in layman's terms... BAs is when you lend to a company with a bank acting as a guarantor that your money would be paid back to you at the expiration of the tenor.

For banks its like taking deposit from you at an agreed interest rate just like in any Fixed deposit;
However it is supposed to be money given to another party with a ban
k acting as guarantor. So most times its only Blue chips that actually do BAs using banks as guarantors or in another way, Banks raise the money for Blue chips from investors like you and I at a rate...

hope i made some sence sha! Been a long time i left banking work!

Do you pay 10% witholding tax on BA?

feelamong:

U welcome bro!

dont forget to come pay ur tithe at our ministry o!

No problem,lol

feelamong:

BANKERS ACCEPTANCES

thanx

@ feelamong, thanks for the explanation.

Desanta:

Do you pay 10% witholding tax on BA?

Yes you pay; but its discounted as such you can take your interest upfront!

feelamong:

Hmmm... do not fully agree with ur take!

BAs are goodf investment out lets and they also pay you interst upfront... i do this with my former bankers just that the interest they give now is not good enough but at 11% for 91days.. i think its OK.

I also think that all the banks for now are very safe to do business with and as such no one should take any customer for granted. Infact the last CBN report only stated the facty that the said 8 banks are taking on more risk than their capital can carry and as such have been advised to raise uop their capital..

why would one go for short term and go thru the rigours of sending in rollover instructions when you do not need the money in the short term? moreover interest are projected to fall in the future so its betytter to lock up my funds for one year at a good interest rate.

But in all I prefer Tbills to other fixed income although am not too cool with its liquidity!!thats why i always go for the 90days...but i will definitely explore the Ecobank BA option now that it has been mentioned..

I will also explore this BA with Ecobank but is it risk-free? I prefer short term because I may need access to my money before 1 year. Anything can happen in Naija. I am not sure what happened to those investors who had long term FD with defunct Savannah bank. If they actually lost their capital then most of their victims should be those with long term FD.

For those that bidded

91 days -----10.7%

182 days-------11.45%

364 days -------11.649%

happy investing..

oga feelamong i have a question, please is it true that for a 91 days tenor that has an bid rate 10% (N10K of N100K) will be divided by 3 (months) to give you N3333 and the N3333 is what you will take home?

princeuk21: oga feelamong i have a question, please is it true that for a 91 days tenor that has an bid rate 10% (N10K of N100K) will be divided by 3 (months) to give you N3333 and the N3333 is what you will take home?

yes bro! thats the figure you get!

feelamong:

yes bro! thats the figure you get!

Thanks Bro

Please who knows the percentage charged by banks for bidding on your behalf?

Dollops: Please who knows the percentage charged by banks for bidding on your behalf?

0.125% of your principal.

I have just invested 4MN in TB just to test it. I was socked Zenith Bank removed over 13k as COT. Is that the normal thing in all Banks? Thank God I did not go for more than 91 days. This is absolute rubbish!
All the same, I thank you guys for educating us.

chiefinalowo: I have just invested 4MN in TB just to test it. I was socked Zenith Bank removed over 13k as COT. Is that the normal thing in all Banks? Thank God I did not go for more than 91 days. This is absolute rubbish!
All the same, I thank you guys for educating us.

Current account thingz.

Sorry, it's advisable you do TB with a savings account.

Oga feelamong, no be so?

inze:

Current account thingz.

Sorry, it's advisable you do TB with a savings account.

Oga feelamong, no be so?

Now I know, but it is much now.

chiefinalowo: I have just invested 4MN in TB just to test it. I was socked Zenith Bank removed over 13k as COT. Is that the normal thing in all Banks? Thank God I did not go for more than 91 days. This is absolute rubbish!
All the same, I thank you guys for educating us.

If you have maintained a current account with them, I'm sure this is not the first time you are getting charged COT for your transactions

It has nothing to do with the TB investment

Damn made the same mistake as using my current account for my TB investment with Guaranty Trust bank, damn it, the commission that will be removed later on is going to be high oooo, damn it,

anyway gtb is excellent, my interest is in my account, as it was the discounted amount that was deducted,so i do not know who is complaining about gtb bank ooooo

walcolm:

If you have maintained a current account with them, I'm sure this is not the first time you are getting charged COT for your transactions

It has nothing to do with the TB investment

I have never been debited like this except my transactions exceed 7MN.

nairaxchan: Damn made the same mistake as using my current account for my TB investment with Guaranty Trust bank, damn it, the commission that will be removed later on is going to be high oooo, damn it,

What should you have done? Transferred it to another acount? Won't that transfer incur COT charges as well?

Seun: What should you have done? Transferred it to another acount? Won't that transfer incur COT charges as well?

I also need answer to this question may be the COT from current to savings will be lesser.
They removed another Commission on Tbills.

Seun: What should you have done? Transferred it to another acount? Won't that transfer incur COT charges as well?

No transfer to my GTB savings account does not Incur COT

princeuk21: oga feelamong i have a question, please is it true that for a 91 days tenor that has an bid rate 10% (N10K of N100K) will be divided by 3 (months) to give you N3333 and the N3333 is what you will take home?

@

feelamong:

yes bro! thats the figure you get!

@All i think dat's figure is wrong.It should be divided by 4 and not 3.So should be 2,500 for 3mth at 10% for a 100k Investment.
But i dont think it's worth it..

timothy001:

@

@All i think dat's figure is wrong.It should be divided by 4 and not 3.So should be 2,500 for 3mth at 10% for a 100k Investment.
But i dont think it's worth it..

My Oga, that is because you're investing in hundreds of thousands nah...... oya just think of the monies that Oga feelamong and Oga Elia who are investing in hundreds of millions and hundreds of billions respectively will be pocketing per annum.
Bros, my humble observation is that in the long run, TBills favours the very deep pocket investors more than any other class of investors.

nairaxchan:

No transfer to my GTB savings account does not Incur COT

Really? But are you sure about this? Because I do transfer from my GTB current to other GTB savings account (not mine though) and I'm charged commission.

Desanta:

0.125% of your principal.

Thanks.