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Nairaland Forum / Nairaland / General / Investment / FGN Savings Bond (10913 Views)
FG's Savings Bond September Offer Closes 7th September / FGN Savings Bond / Federal Government To Sell N5,000 Savings Bond To Public (2) (3) (4)
Re: FGN Savings Bond by TPAND(f): 9:46am On Jun 07, 2017 |
This DMO bond is not in the interest of Nigerians. Take this analogy, I invest 500,000 then wait for 1years to collect 56,000. Thats a stupid investment and use of money |
Re: FGN Savings Bond by churchkilo(m): 9:49am On Jun 07, 2017 |
Any stock broker in the house pls 1 Like |
Re: FGN Savings Bond by smileyoo: 9:57am On Jun 07, 2017 |
pls where is federal goverment, are they still working for the interest of the masses? |
Re: FGN Savings Bond by dotun365: 9:58am On Jun 07, 2017 |
charleff512:Contact a stock Broker. Here's a link to a list of the stockbrokers from the NSE's website. http://www.nse.com.ng/dealing-members/find-a-dealing-member/dealing-member-directory |
Re: FGN Savings Bond by kekakuz(m): 9:58am On Jun 07, 2017 |
please I need someone to help me explain and how to cash out |
Re: FGN Savings Bond by seighapaul(m): 10:01am On Jun 07, 2017 |
presidency: Wait o...so FG is saying that if I put 200k on either of the 2 plans, they'll reward me with 13% after 2yrs or 14% after 3yrs. Am not understanding at all, I think there must be omitted percentages or hidden goodies. |
Re: FGN Savings Bond by whitebeard(m): 10:02am On Jun 07, 2017 |
JohnieWalker12:Ethiopia..Is there any war in Ethiopia. |
Re: FGN Savings Bond by dotun365: 10:04am On Jun 07, 2017 |
TPAND:You can look at it like that. but what are the alternatives. If you leave it in your bank account you only get less than 5%. The only sensible alternative is to buy into a money market fund which gives you access to T'bills which offer a higher rate. apart from the T'bills which other use of money do you suggest that's better?? 4 Likes |
Re: FGN Savings Bond by TPAND(f): 10:09am On Jun 07, 2017 |
dotun365:If i sell provisions with N500,000 in one year, i should make more than what you guys are offering. Tie my money down and i will wait for 1 full year to earn 13%. Get out og here with this offer 1 Like |
Re: FGN Savings Bond by dotun365: 10:09am On Jun 07, 2017 |
lilreese:It's paid quarterly. so 13% is split into 4 given you around 3.22% of what you used to buy the bond. then when the bond matures, you receive the amount you used to buy the bond. e.g if You had 1,000,000 and you buy a 3year bond paying 13%, you receive around (13/4)% ~=30,000 every quarter for 3years and then at the end of the 3 years the government gives you back your 1,000,000. 2 Likes |
Re: FGN Savings Bond by dotun365: 10:11am On Jun 07, 2017 |
Chukason1:wrong!! saving is for people that want to save. |
Re: FGN Savings Bond by Misterpaul(m): 10:11am On Jun 07, 2017 |
BoboKush:Government bond is the most secured investment you can think of, Zero risk! Since Govt can never stop operating. Your money is sure. |
Re: FGN Savings Bond by Giddyperson: 10:12am On Jun 07, 2017 |
exlinkleads:Lol they are trying to raise more money to loot but as long as Nigeria exists, you would definitely get your money back. 1 Like |
Re: FGN Savings Bond by Bondesniger(m): 10:16am On Jun 07, 2017 |
this is good investment my broker sent me a message on the last one in March guys am broke right now just pray for me |
Re: FGN Savings Bond by megawax8: 10:16am On Jun 07, 2017 |
GeneralOjukwu: Actually, its N141, 890 per annum. i.e a total of N425,670 in three years. 7 Likes |
Re: FGN Savings Bond by dotun365: 10:21am On Jun 07, 2017 |
GeneralOjukwu:With regards to the interest, that 141,890(I don't know what % rate you used but I'll stick to your example) would be split into 4 and paid every quarter. and the 141,890 would be given to you every year for 3 years and at the end you get your 1 million back. Yes Treasury bills(not bonds) pay higher but you are required to buy a minimum of N50 million to get access to it. the way around it would be to buy into a money market fund(e.g ARM MM fund, United Capital MM fund, Stanbic IBTC MM fund...etc). What these funds would do is gather money form different people and then with that volume they would be able to reach the minimum required to buy into treasury bills. they would also take their commission and other fees but it MAY still be higher than the savings bond rates. 1 Like |
Re: FGN Savings Bond by GeneralOjukwu: 10:22am On Jun 07, 2017 |
megawax8: Thanks so much for this. Been interested in such for a while. God bless. Are treasury bills not more lucrative? Someone told me you get 17% per annum. PLEASE clarify You mentioned fixed deposits in the comment below....which is best? Max i can drop is 3 million...minimum 1 million |
Re: FGN Savings Bond by megawax8: 10:23am On Jun 07, 2017 |
TPAND: You are getting it quite wrong. It is called a SAVINGS BOND. The FG never advised you to stop your business and invest all your money in the offer. They are simply offering you higher rates for the cash you have and keep idle in the bank. The highest interest rate you can get from saving your money in a bank is 4.2% i think, you can get higher in a fixed deposit but then it depends on the amount you are bringing in and the duration. In summary, it is really a good deal. Higher rates and low/next to no risk with the possibility of starting with as low as N5,000. 1 Like |
Re: FGN Savings Bond by GeneralOjukwu: 10:27am On Jun 07, 2017 |
dotun365: God continue to increase your intelligence. I used this. N1,000,000 taking the 3 year plan. I am not business minded, prefer "safe" investments with low risks like this. Are you advising Treasury bonds over this? Start-up might be 1-3 million. At least within 3 years, would get close to 1 milion if start-up capital is 3 million ? |
Re: FGN Savings Bond by TPAND(f): 10:28am On Jun 07, 2017 |
megawax8:ooo i understand now. Can i withdraw or pull out my investment anytime |
Re: FGN Savings Bond by megawax8: 10:34am On Jun 07, 2017 |
GeneralOjukwu: Exactly. Treasury bills return higher. dotun365 's explanation is correct. |
Re: FGN Savings Bond by dotun365: 10:38am On Jun 07, 2017 |
TPAND:good luck selling your provisions if you haven't started selling it yet. but check this out, You have to sit at your stall or shop through out the day or pay someone to do it or your stall could be bungled (God forbid) or other risks could be involved. sometimes all those risks involved may not be worth your while in terms of returns. However, a federal government bond they say is 'riskless'. if worse comes to worst the government is able to print money on tissue paper to pay you (then the matter of inflation could arise by this time we could be fighting a war). However you can go to bed knowing that your money is earning some returns without the relative risk attached to every normal investment venture. 1 Like 1 Share |
Re: FGN Savings Bond by just2endowed: 10:46am On Jun 07, 2017 |
treasury bills pay better. No wonder govt set the minimun amont one can invest to 50million. They want to force lower investors away for TB. Ko jo |
Re: FGN Savings Bond by megawax8: 11:04am On Jun 07, 2017 |
TPAND: The design was for it to be trading on the floor of the Nigerian Stock exchange, although i haven't seen it on their online platform yet. But to answer your question directly, YES you can pull out at anytime. |
Re: FGN Savings Bond by hannne(f): 11:11am On Jun 07, 2017 |
Mmadu111:the rate for this week is 2-Year FGN Savings Bond Due June 14, 2019 2 Years 13.189% 3-Year FGN Savings Bond Due June 14, 2020 3 Years 14.189% and interest is paid quarterly. the sweet part is u can invest as low as 5000 and also it is risk free |
Re: FGN Savings Bond by hannne(f): 11:12am On Jun 07, 2017 |
judecares1:You can access the bond by contacting a stockbroker licensed by DMO. Cowry asset management Limited is one of the stockbrokers for this |
Re: FGN Savings Bond by hannne(f): 11:13am On Jun 07, 2017 |
tolasosanya:No interest upfront. It is paid quarterly 1 Like |
Re: FGN Savings Bond by megawax8: 11:15am On Jun 07, 2017 |
GeneralOjukwu: It totally depends on the rates your bank gives you. Rates for a one-year T-bills, from the last auction was at 18.7% and almost at the same figure at the secondary market. Fixed deposit depends on your bank but it can never exceed the T-bills rate, so, i would be guessing between 7-12% with the capital mentioned. The T-bills is better in my own view. Gives a higher value in terms of return and is backed by the full credit of the Federal Republic of Nigeria(i.e generally not risky). ********************modified I must mention, the 18.7% I stated for T-bills are known as discount rates. The interest is paid upfront. When calculated appropriately, you would find that the interest rate is as high as 23% for one year. Using your 1million as example, if you want to buy T-bills worth 1 million at 18.7%, about N813,000 would be debited from your account. Here, the N187,000 serves as your interest paid upfront and on maturity(after the one year duration), you would be given back 1 million. |
Re: FGN Savings Bond by hannne(f): 11:15am On Jun 07, 2017 |
Costello559:These are the features Minimum subscription amount of N5, 000 with additions in multiples of N1, 000. Fixed interest rate to be paid on a quarterlybasis while principal will be repaid on maturity. The rate will be announced on monthly basisbefore the commencement of the offer. The bond is backed by the full faith and creditof the Federal Government of Nigeria. The bond will be tradable on the NigerianStock Exchange. Settlement period is T+3. The Benefits includes Interest income from the savings bond is tax free. Returns are competitive and guaranteed Investors will enjoy interest payments on a quarterly basis while principal will be repaid on maturity. Provides liquidity as it will be tradable on the Nigerian Stock Exchange. The bond can be used as collateral for loan. Investing in the bond serves as savings towards retirement, marriage, school fees,house projects, etc. |
Re: FGN Savings Bond by hannne(f): 11:20am On Jun 07, 2017 |
GeneralOjukwu:. Yes, you are right because banks will not offer you up to this amount.d highest bank can do is 8% but u know we have asset management companies that can give you interest rate of 12% on 1m for a year and interest paid upfront too. Treasury bills is still also good because there is no risk attached to it although rates are coming down unlike last month bid. |
Re: FGN Savings Bond by GeneralOjukwu: 11:20am On Jun 07, 2017 |
megawax8: Mr Megawax , hanne and dotun365....greatly appreciate your financial advice. By His Grace, would see what 2018 would hold as per Treasury Bills... 1 Like |
Re: FGN Savings Bond by hannne(f): 11:22am On Jun 07, 2017 |
churchkilo:. Yup. What do you want to find out. I work with Cowry Asset Management Limited. |
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