Nnamz:
I don't understand. You request for it to be rolled over? Meaning in the absence of any such request you get your money at maturity?

Izuogu1:
What's FBN current interest rate for secondary market? 91days or less
Can someone Pls confirm for me?

megafaraday:


Kindly walk into the bank to confirm or put a call through to their customer care agent. Reason is an available tenure now can be unavailable the next minute

troy20:
You guys are awesome. Have been silently following for a long time. Please pardon my ignorance. Can someone tell me the difference between the primary and secondary markets. And the different institutions that offer them please. Just want clarity. And again what's the difference between the government bond and Tbills. Can they be acquired same way?

Nnamz:
Secondary market is what everyone that comments or posts here does because they do not have up to 50 million Naira. Our individual banks pulls everyone's money and buys directly from the primary market, which requires 50 million Naira and above.

Government bonds has options like 1, 3, 5, or 10 years (maybe more lol). How it works is that you lock up your money for say 3 years at say 18% per annum, and your interest is paid (I think) quarterly, so that 18% (eg if you invested 10,000,000 at 18%) would be divided by 4 and for the next 3 years you would be paid 1.8 million divided by 4 every three months. At the end of three years you get back your 10,000,000. Whereas Treasury bills has options like 91, 182, 36 days. Your interest is paid upfront. This means that 450,000 for example would be debited from your account but you receive 500,000 at maturity (the 50,000 was your upfront paid interest).

Nnamz:
[b][b][s]Secondary market is what everyone that comments or posts here does because they do not have up to 50 million Naira[/s]. Our individual banks pulls everyone's money and buys directly from the primary market, which requires 50 million Naira and above.

Government bonds has options like 1, 3, 5, or 10 years (maybe more lol). How it works is that you lock up your money for say 3 years at say 18% per annum, and your interest is paid (I think) quarterly, so that 18% (eg if you invested 10,000,000 at 18%) would be divided by 4 and for the next 3 years you would be paid 1.8 million divided by 4 every three months. At the end of three years you get back your 10,000,000. Whereas Treasury bills has options like 91, 182, 36 days. Your interest is paid upfront. This means that 450,000 for example would be debited from your account but you receive 500,000 at maturity (the 50,000 was your upfront paid interest).

Barrytone:

WHY DO YOU THINK FOLKS HERE DONT HAVE MORE THAN 50M ON TBILLS? NEVER GENERALIZE YOUR PERSONAL POSITION. SPEAK FOR YOUR SELF.

Nnamz:
Because people with 50 million Naira or more don't have time to be on nairaland. So I still stand by my position lol

Barrytone:


Hmmnm, you think dangote don't have time for refreshments and recreation? When you break even in life, your money do the running around while you run around golf course and monitor your diet so you live long.

Iammelvin:
Good mornin..pls can someone help me with the current rate of TB for 360 days in stanbic bank?

Nnamz:
And if you threw in fixed deposit to the equation, the one that Zenith Bank likes to convince their customers to go for (DON'T EVER FALL FOR THIS. IN FACT, AVOID ZENITH BANK WHEN IT COMES TO INVESTMENTS!!!!), fixed deposit will debit you the full amount, and credit you back , at maturity, that full amount PLUS the interest.

So in summary, bonds take the full principal, spread the interest over the tenure, and pays back the full principal at maturity. Tbs gives you interest upfront, and credits you the full principal. Fixed deposit takes all the principal, credits you NOTHING until maturity when you get both the principal and interest all at once.

troy20:

Thank you. In other words fixed deposit is same as government bond. And at 18% percent per annum. Is the rate that high?

troy20:

Thank you. In other words fixed deposit is same as government bond. And at 18% percent per annum. Is the rate that high?

freeman67:


Fixed deposit is not same as Government Bonds.. It been severally adviced here that once you stumble on this thread, the best thing to do is to read from the beginning at least covering the first 20pages would give enough knowledge that you will not need to ask some certain questions.. Once you do otherwise and start asking based on what you read from the page you met it. People that have read through that place/knowledgeable enough may not be around to respond to you.

Fixed deposit is a financial instrument provided by banks that give investors higher interest than the regular savings account.

For fixed deposit the tenure is determined by the customer/investor. You tell the bank how many days you want to fix and once the rate is agreed there fixed in some banks another account is created and money moved there you will see but can't touch or withdraw while in other banks the said amount will be deducted till it matures before it is returned back.

Fixed deposit interest is subject to 10% Tax charge

The interest accrued on Fixed deposit is only gotten after the investment matures....

All these are not the same with both government bonds

For more knowledge or info on bond read thread the thread below.

https://www.dmo.gov.ng/fgn-bonds

Nnamz:
And if you threw in fixed deposit to the equation, the one that Zenith Bank likes to convince their customers to go for (DON'T EVER FALL FOR THIS. IN FACT, AVOID ZENITH BANK WHEN IT COMES TO INVESTMENTS!!!!), fixed deposit will debit you the full amount, and credit you back , at maturity, that full amount PLUS the interest.

So in summary, bonds take the full principal, spread the interest over the tenure, and pays back the full principal at maturity. Tbs gives you interest upfront, and credits you the full principal. Fixed deposit takes all the principal, credits you NOTHING until maturity when you get both the principal and interest all at once.

zinaunreal:
Lawd when will i make and see my 50m with my koro koro eyes

zinaunreal:
Lawd when will i make and see my 50m with my koro koro eyes

aremso:



Laughing here! with right investment mind and God is on your side, 50m is very small for you to have legit and not govt of fraud money. now let me tell you why the person that said if one has 50m, one has nothing doing on nairaland might not be totally wrong. if i have 50m and put it in TB for 364 days @ 12% the return will be 6m fine now play the game on investment on NSE for those who can take the risk like me which have been enjoying, stake 50m in one stock like zenith bank @ #18 cos as the election draws near, stocks prices would be going down due to uncertainty and the believe is election will come and go and naija still remain one. so back to 50m on zenith @ 18 it will give u 2,777,000units after the election and zenith release their finacial result which of couse would be ok, the stock can go to #28 but lets take #25 so 25x2,777,000=69,425,000 now lest say zenith do a dividend of #2.30 x 2,777,000=6,387,100. All together, return on #50m for less than 5month is #25,812,100.

summary

TB 50M(364DAYS)@ 12%=6m

Stock zenith bank less that 5month= #25,812,100

now capital plust gain= 75,812,100. ok

pull it back to TB @12% for 364days when share prices would have gone down. return would be #9,097,452+ 75,812,100=#84,909,552

same stock @18 then u get 4,717,000units by #25= 117,925,000+10,849,100@ # 2.3k div totalling #128,774,100 for period of 2yrs.


so one can generate addditional #78m just in 2 yrs. i choose zenith cos have been investing in the stock for a decade now and no cause for alarm though i do some other stockS like GTB

stephen13:

Just did today 11.49 for 362 days

Barrytone:

What if the price drops further like it was in the past. In TBills you must gain. Generally the higher the risk, the higher the profit / loss. I rather remain with a win win situation that is TBills. I come to mainland to unwind, so no amount of money might take me off for now except we have alternative platform where Nigerian speaks their minds.

aremso:



i have been in this stocks stuff for over a decade and the worst was experienced in 07/08 in which i learnt my lession in a very hard way but i will not say cos there is plane crash i will not board aircraft again. Go and reseach it as aside the global economic melt down of 07/08 zenith stock has not gone below #10 and gtb has not gone below 14 pls u can take the pain to confirm. am a risk taker i know the time to enter and exit i pulled out 8.2m from stock into TB after 450k div and now those stock are going down. so know tuhe entry time and exit time. I love the game as taught by my mentor warren buffet. am hoping to get 3m from stock as gain next yrs by God grace

ahiboilandgas:
u have to be careful cos interest rate moving up in America...no fdi into nse