Henrypraise:


How is it 2500? Pls explain

simply put, your money will be calculate for the months which is 3months using per anum calender.

Since you plan to invest 100k at 10 percent for 91days, then your calculated interest should be

10 percent of 100k will give you 10k

now 10k/364days( per anum calender).it will give you 27.472527473

now multiply the 27.472527473 by 91days

it will give you 2500.hope its now clear

just2endowed:
I have bid for next week tb. I hope ecobank will adhere to my rate. Those bankers are smart. If u don't know much they will sell secondary bid to someone but i insist i do my bidding

then you may end up losing so many opportunity if you intend going with cbn rates because your bid may be higher or lower than cbt stop rate.best is to allow the bank to use their own rate which is secondary market. Its better that way because you won't miss out on tbill purchase.

billtommy:
I will like to know the difference btw primary and secondary bid, and I will like to know when next bidding will take place. Thank you.

primary bid is what cbn decided to give which may favour you if it worked out in your favour because banks will only purchase for you when your bid is same with what cbn decided.anything higher or lower than what cbn decided will leave the bank no other option than to give you back your money because they won't purchase it and you will miss out in so many tbill opportunity while on the other hand

secondary market is for reselling of tbill by those who have bought it.this is what most people purchase at banks because they will give you their own rate.in this case, you are not supposed to indicate bid percentage.you will leave the interest rate blank because the bank will purchase it and give you their own rate.some banks do show their interest rate before you buy.this way you will decide wheather to buy or not after seeing their interest rate.

Interesting

Gone thru d thread but stl v a few questions:
1. Is d interest paid every month or just 1s?
2. Contradicting posts on charge on d thread; is it 0.125% of face value or d interest? Cos I read on here dt it is deducted upon maturity, but d yield had bin paid upfront months b4 maturity.

My observation to d house: instead of referring newbies to page1, it wld b grt if one of d experts made a summarized post of what needs to b known for newbies. Den newbies can b referred to that page, reading from page 1-102 is tough considering u'll v to sieve thru teachings, complaints, bid attempts and results, it gets confusing along d way.

Just my observation.

Cc: feelamong, princeuk21, pipz and all

taiwoliu:
Gone thru d thread but stl v a few questions:
1. Is d interest paid every month or just 1s?
2. Contradicting posts on charge on d thread; is it 0.125% of face value or d interest? Cos I read on here dt it is deducted upon maturity, but d yield had bin paid upfront months b4 maturity.

My observation to d house: instead of referring newbies to page1, it wld b grt if one of d experts made a summarized post of what needs to b known for newbies. Den newbies can b referred to that page, reading from page 1-102 is tough considering u'll v to sieve thru teachings, complaints, bid attempts and results, it gets confusing along d way.

Just my observation.

Cc: feelamong, princeuk21, pipz and all

The truth is that newbies will come every now n then. Since the forum is more of a current affairs cum educative one as questions are asked answers will be given. It is incumbent on people to do some research too.

Hi Guys,

I have followed the thread and read through all the comments and posts. They were all enlightening and insightful. Thanks guys for the good job.
I've tried severally to invest on Tbills but my bank (Ecobank and Fidelity) keeps giving me reasons not to and insisted that I consistently did Fixed Deposit which very low interest rates that are still being taxed.

I have a few questions please

1. I intend investing 350K but the bank says its small for doing Tbills and I need to have upto 1M to do Tbills. What is the minimum amount required??

2. Are there any preferred banks to invest with?

3. When is the next auction date and how do I participate?

Your responses will be highly appreciated.

Which banks would help a customer to sell her tbills at discounted rates before they mature if the customer needed cash urgently?

Seun:
Which banks would help a customer to sell her tbills at discounted rates before they mature if the customer needed cash urgently?

Sell or terminate prematurely?

I know banks can terminate prematurely.

chikenicholas:
Hi Guys,

I have followed the thread and read through all the comments and posts. They were all enlightening and insightful. Thanks guys for the good job.
I've tried severally to invest on Tbills but my bank (Ecobank and Fidelity) keeps giving me reasons not to and insisted that I consistently did Fixed Deposit which very low interest rates that are still being taxed.

I have a few questions please

1. I intend investing 350K but the bank says its small for doing Tbills and I need to have upto 1M to do Tbills. What is the minimum amount required??

2. Are there any preferred banks to invest with?

3. When is the next auction date and how do I participate?

Your responses will be highly appreciated.

The minimum you can invest is 100k.

It's normal for banks to discourage you from t.bills because it doesn't count for them unlike fixed deposits.

As for preferred banks, you'll have to weigh your options.

Caracta:


The minimum you can invest is 100k.

It's normal for banks to discourage you from t.bills because it doesn't count for them unlike fixed deposits.

As for preferred banks, you'll have to weigh your options.

I use Access bank n you can invest 100k

Caracta:


The minimum you can invest is 100k.

It's normal for banks to discourage you from t.bills because it doesn't count for them unlike fixed deposits.

As for preferred banks, you'll have to weigh your options.

It's 10k officially please.

unite4real:


It's 10k officially please.

So is the price in one piece of land in my village. Only for them to charge you close to 1 million.

Officially on paper it's written but who gets it for that amount? Jamb question.

Caracta:
Sell or terminate prematurely?

I know banks can terminate prematurely.

Any one of the two works for me. Which banks can terminate treasury bills prematurely and what's the process like? Thanks a mill..

unite4real:


It's 10k officially please.

10k? Where?

Seun:
Any one of the two works for me. Which banks can terminate treasury bills prematurely and what's the process like? Thanks a mill..

Just approach your bank or send them a mail. They will terminate it at a discount. It is very easy.

Seun:
Any one of the two works for me. Which banks can terminate treasury bills prematurely and what's the process like? Thanks a mill..

Any commercial bank your investment is domiciled.

You would lose 20% of your interest but since your interest has been credited upfront, the 20% penal charge would be deducted from your principal instead.

Just visit your bank and fill the form or write a letter to that effect. It can be done same day.

Just 20%?......I don't think so,it has a lot to do with the duration and how many days is left,then they will deduct all the pre-paid interest of remaining days.............

Caracta:


Any commercial bank your investment is domiciled.

You would lose 20% of your interest but since your interest has been credited upfront, the 20% penal charge would be deducted from your principal instead.

Just visit your bank and fill the form or write a letter to that effect. It can be done same day.

angelo82:
Just 20%?......I don't think so,it has a lot to do with the duration and how many days is left,then they will deduct all the pre-paid interest of remaining days.............

The 20% penal charge is calculated based on the tenor used, the principal and the interest rate. The bank can show you how it's calculated even though it's system generated. And of course he won't get the interest of the remaining days.

Its not really worth liquidating it before the tenure.............I guess the 20% is a penalty charge on the overall interest...........

Caracta:


The 20% penal charge is calculated based on the tenor used, the principal and the interest rate. The bank can show you how it's calculated even though it's system generated. And of course he won't get the interest of the remaining days.

angelo82:
Its not really worth liquidating it before the tenure.............I guess the 20% is a penalty charge on the overall interest...........

Since you have earned the interest upfront, the penalty will be deducted from the principal. That is how it is done, if you want further explanation consult your bank.

angelo82:
Its not really worth liquidating it before the tenure.............I guess the 20% is a penalty charge on the overall interest...........

Yes it is.

When you are in urgent need of money, you may not be bothered about the penal charge.

Hi fellow investors;

From the last few pages, I noticed there have been some sort of conflicting posts with regards to bidding alongside self-placed stop rate. My question goes thus; in a situation I'd placed 13.9% for a 364 tenor (PMA), whereas the CBN published auction result for same is 14.10%.

Am I considered as a successful bidder or loser?


Secondly, for those who have been trading with Firstbank for the purchase of Tbills, were you allowed to place your own stop rate or do you go with the bank's bid stop rate?


Lastly, what are the published CBN's primary market auction's stop rates for the last auction held?

Thanks in anticipation for your responses to my Q's.

At that rate,your bid is successful but you will only get 13.9%....................

ghettodreamz:
Hi fellow investors;

From the last few pages, I noticed there have been some sort of conflicting posts with regards to bidding alongside self-placed stop rate. My question goes thus; in a situation I'd placed 13.9% for a 364 tenor (PMA), whereas the CBN published auction result for same is 14.10%.

Am I considered as a successful bidder or loser?


Secondly, for those who have been trading with Firstbank for the purchase of Tbills, were you allowed to place your own stop rate or do you go with the bank's bid stop rate?


Lastly, what are the published CBN's primary market auction's stop rates for the last auction held?

Thanks in anticipation for your responses to my Q's.

angelo82:
At that rate,your bid is successful but you will only get 13.9%....................

Thanks, that clears the air. And have you at any given time invested in Tbills via First bank before? I'm asking regarding my second question.

No........

ghettodreamz:


Thanks, that clears the air. And have you at any given time invested in Tbills via First bank before? I'm asking regarding my second question.

angelo82:
No........

Okies, thanks for your time - greatly appreciated.

ghettodreamz:


Thanks, that clears the air. And have you at any given time invested in Tbills via First bank before? I'm asking regarding my second question.

FBN will not allow you state your stop rate for your bid. You have to go with the bank rate.

Desanta:


FBN will not allow you state your stop rate for your bid. You have to go with the bank rate.

Okies, thanks for the response - greatly appreciated. Have you any idea of what the last primary market auctions' results were? And when is the next auction taking place?

feelamong:


Good day XXXXX,

Please find below the results of the Primary Auction:

PRIMARY MARKET AUCTION RESULT

TENOR (DAYS) STOP RATE

91 9.95%



182 12.75%


364 13.00%


Please note that Bidders either won or lost at their own quotes. Therefore, quotes higher than stop rates above were not successful.

There should be an auction this week (Wednesday).

Seun:
Any one of the two works for me. Which banks can terminate treasury bills prematurely and what's the process like? Thanks a mill..

Bro, Associated Discount House ADH is your best bet. Call their customer care and request for CELINE to be your account officer(dis babe can spin magic ooo) also Consolidated Discount House CDL can do same. ADH is very very flexible... You check both discount houses out on CBN website.

ghettodreamz:


Okies, thanks for the response - greatly appreciated. Have you any idea of what the last primary market auctions' results were? And when is the next auction taking place?

June 3rd (today)