ebunoyeyemi:
Good Evening, Please though I ve known about treasury bills for some time now but something is still not clear to me.

Just for example... If I'm investing 1M for 91 days at 13% and the same 1M for 182 days at 17%, don't you think it is wiser to invest the 1M for 91 days twice? Or one can't reinvest again and again?

Like if you are investing 1M at 13% for 91 days and 1M at 20% for 364 days, 91 x 4 = 364, 13 x 4 =52... Is that not 52% instead of the 20%?

I need some explanation on this please.

It doesnt work that way, your 13% for 91 days will be divided into four. You get miximum percentage and full profit only on 365 days investment.

Sister nkechima Sister nkechima

mamajaz:
Sister nkechima Sister nkechima

I think say I dey invisible

Treasure Bills

Can I get a copy of the current NTB time table?

TONY56:


It's very easy without hassle.
After opening an account with them which I advise should be a Savings for obvious reasons, visit any branch of your choice and ask for the officer in charge of Treasury Bills.

Whether it's Primary or Secondary Market you want to go for, get their form, fill it with the amount and tenor you are choosing and indicate in the appropriate place on the form that you want your interest to be re-invested and not paid upfront.

Chikena!!! (That's all)
Avoid going through your account officer in case he or she is not happy that you are not opting for Fixed Deposit or process it through another Branch to avoid him or her entirely.

Sorry pls wat reasons for savings acct?

OakPearl:


Please dont let bankers misadvise you.
You can invest in treasury bills through the primary market with as low as N100k, the CBN N50m policy not withstanding.
The difference is if you do not have N50m to bid independently, you have to go with your bank's bid rate.
Stanbic IBTC accepts N100k and above in the primary market.
Some branches of first bank accept N1m and above.
Best regards.

So how do i differentiate when i am opting for primary mkt from when am opting fot secondary market?

joseph1013:

Does anyone have the answer to this?

CBN website. You'll get the data but you'll have to create the chart yourself

N62.4b Bills Mature via Primary Market
https://www.businesspost.ng/2017/08/20/n62-4b-bills-mature-via-primary-market/

I want to terminate my Tbills that will mature 5th October, is there any penality for this, and how long will it take my bank to credit my account.

I too would like to liquidate my T bills. Mine expires in december. Its primary market I got at 18.5%. Can a bank liquidate primary market bills?

ijeshaboy:
I want to terminate my Tbills that will mature 5th October, is there any oenality for this, and how long will it take my blanket to credit my account.

Mpeace:
I too would like to liquidate my T bills. Mine expires in december. Its primary market I got at 18.5%. Can a bank liquidate primary market bills?

just go to the bank where you bought it and request liquidation.

i hear it doesnt take days to complete (ibtc).

you loose like 10%-20% of the interest you earned upfront... So your capital will return almost full

joseph1013:

How were you able to invest in the primary market with less than 50 million naira?

you can invest as low as 100K in TB depending on the bank and branch,but you don't bid at your rate but at the banks rate in the primary market ,but with 50M you tend to bid with your own rate that the difference

Partnerbiz3:

So how do i differentiate when i am opting for primary mkt from when am opting fot secondary market?

Primary auction only takes place fortnightly, that is twice a month with standard tenors of 90 days, 182 days, and 364 days.
Secondary market can be available on daily basis and varies in tenor and rates as it is tbills already held for sometime by people who decide to resell and recover their capital before maturity. Tenors as low as 30 days, 45 days, 100 days and so on can be on offer.

OakPearl:


Primary auction only takes place fortnightly, that is twice a month with standard tenors of 90 days, 182 days, and 364 days.
Secondary market can be available on daily basis and varies in tenor and rates as it is tbills already held for sometime by people who decide to resell and recover their capital before maturity. Tenors as low as 30 days, 45 days, 100 days and so on can be on offer.

Tnx

ijeshaboy:
I want to terminate my Tbills that will mature 5th October, is there any oenality for this, and how long will it take my blanket to credit my account.

I deal with first Bank. You are expected to give 2 weeks notice before the expiration date. You will write a formal letter to the bank manager stating your intentions

pafra:


I deal with first Bank. You are expected to give 2 weeks notice before the expiration date. You will write a formal letter to the bank manager stating your intentions

bro, I mean termination before maturity. It will mature October 5 and I need money.

C4Ltd:
have you checked your balance?

Yea its been verified. It was paid but no alert came through. Twice now payment from CBN has come and no credit alert, I will be looking forward to the next one to observe if same thing will happen. Maybe the banks are stylishly avoiding the alerts coming through, so I wouldn't know when the Tbills have reached maturity date,lol

joseph1013:

Does anyone have the answer to this?

I don't think you will get what you are looking for because any chart drawn over the years, will be Rates calculated on a yearly average.
Why not start from the beginning of this thread, atleast it began December 2012, You can take your time to go after each page while putting down the rates of various month.

Although from mg observation, November December January , rates are always dropping.
May June July seems to be when the rates are spiked due to calls for budget implementation. This is my own observation which could be wrong, so you can do yours and observe for yourself! #Start from Page 1

ebunoyeyemi:
Good Evening, Please though I ve known about treasury bills for some time now but something is still not clear to me.

Just for example... If I'm investing 1M for 91 days at 13% and the same 1M for 182 days at 17%, don't you think it is wiser to invest the 1M for 91 days twice? Or one can't reinvest again and again?

Like if you are investing 1M at 13% for 91 days and 1M at 20% for 364 days, 91 x 4 = 364, 13 x 4 =52... Is that not 52% instead of the 20%?

I need some explanation on this please.

Nice question brother, this is where i am confused too. It shows the 91 days plan is better than the 182 and 364 day plan. I will really appreciate if someone can educate us more on this before i decide.
Thank you.

please when is the next auction? I need to get the date.

also hope 364 days will be available in the next auction?

yemmit90:


It doesnt work that way, your 13% for 91 days will be divided into four. You get miximum percentage and full profit only on 365 days investment.

Thanks so much. Will go for a year plan then. When do you think will be the next auction date?

Phyde:

Nice question brother, this is where i am confused too. It shows the 91 days plan is better than the 182 and 364 day plan. I will really appreciate if someone can educate us more on this before i decide.
Thank you.

No its not, using the example of the person whom you just quoted.
1million naira 13% for 91days and
1million naira 17% for 182days

Investment 1:
1million naira at 13% for 91days
............
1000000 x 13/100 = 130,000 for the year
130,000/364days = 357.14 naira per day
which means you will earn 357naira in a day!!!!
so 91days = 357.14 x 91 = 32,500 (Gross profit)



Investment 2:
1million at 182days for 17%
..........
1000000 x 17/100 = 170,000 for the year
170,000/364 = 467.03 naira per day
which means you will earn 467naira in a day
so 182days = 467 x 182 = 84,999 (Gross profit)

NOW you can see that Investment 2 is yielding more profit per day even though it spans for 182days

...,.............................
Now for the purpose of compounding,
if after your 91days investment matures,
You take the 32,500 + 1million capital and invest it for another 91days at same rate of 13%
it becomes
1,032,500 x 13/100 = 134,225 in a year
134,225/364 days = 368naira per day
368naira x 91days = 33556
33,556 is your interest for 91days + ur capital of 1,032,500 brings a GRAND TOTAL of 1,066,056

So my friend even with a compound interest
1million will yield 66k if compounded 91days twice
while for 182days , 1million will yield 84k.
that's about 18k difference. So u see my friend 91days is not cool if your Profit hungry, its only adviceable to use 91days if you would be needing cash soon enough!!!! Lool

chukzyfcbb:

No its not, using the example of the person whom you just quoted.
1million naira 13% for 91days and
1million naira 17% for 182days

Investment 1:
1million naira at 13% for 91days
............
1000000 x 13/100 = 130,000 for the year
130,000/364days = 357.14 naira per day
which means you will earn 357naira in a day!!!!
so 91days = 357.14 x 91 = 32,500 (Gross profit)



Investment 2:
1million at 182days for 17%
..........
1000000 x 17/100 = 170,000 for the year
170,000/364 = 467.03 naira per day
which means you will earn 467naira in a day
so 182days = 467 x 182 = 84,999 (Gross profit)

NOW you can see that Investment 2 is yielding more profit per day even though it spans for 182days

...,.............................
Now for the purpose of compounding,
if after your 91days investment matures,
You take the 32,500 + 1million capital and invest it for another 91days at same rate of 13%
it becomes
1,032,500 x 13/100 = 134,225 in a year
134,225/364 days = 368naira per day
368naira x 91days = 33556
33,556 is your interest for 91days + ur capital of 1,032,500 brings a GRAND TOTAL of 1,066,056

So my friend even with a compound interest
1million will yield 66k if compounded 91days twice
while for 182days , 1million will yield 84k.
that's about 18k difference. So u see my friend 91days is not cool if your Profit hungry, its only adviceable to use 91days if you would be needing cash soon enough!!!! Lool

Thanks a billion sir

Phyde:

Thanks so much. Will go for a year plan then. When do you think will be the next auction date?

Auction is every month.

Phyde:

Thanks so much. Will go for a year plan then. When do you think will be the next auction date?

Next auction should be August 30, 2017.

NL1960:


Next auction should be August 30, 2017.

Thank you sir

yemmit90:


Auction is very month.

Thanks sir

ijeshaboy:
bro, I mean termination before maturity. It will mature October 5 and I need money.

Approach the bank for advice. The charges from the bank will make you change your mind. You have to apply official after which they will make you understand the implications (charges for premature termination) if you are OK with it they can now go ahead and effect your order

Partnerbiz3:

Sorry pls wat reasons for savings acct?

It's because you won't incur charges like is done on current accounts and while you have money there in savings you will be earning interest on your balance

RealityShot:

just go to the bank where you bought it and request liquidation.

i hear it doesnt take days to complete (ibtc).

you loose like 10%-20% of the interest you earned upfront... So your capital will return almost full

I heard it is so dificult to liquidate Tbills. Hw true is dis?