Mfunkynation:
FBN offering 11 + for my M. the refuse to tell me the days .
when i turn the offer down, he was vibrating that 11% was good that i should take it.
i just jejely walk away

Adegokenath:
Thank you contacting Union Bank, my name is Joy. The rate apply as follows.
10.96% 91days
13.4 % 182 days
14.4% 1year

Mfunkynation:

is this rate applicable to their bank or the are just copied to paste for you.

yinkaoke:
Hello house,

Please does anyone know about investing in any of the micro finance bank for Fixed deposit; I got their rate guide today and its so high and tempting, I need to know if theirs any risk associated with investing with them.

there rates are 15%, 17% and 18% for fund in the range of N1M - N9M for 90,180, 270 & 360days.

Please any one ever placed funds with them

Lamide123:


Bro don't do it. If it is not a regular bank it is not a bank

dammy222:

Which tenor did you apply for ?

yinkaoke:


I appreciate your response and would be more grateful if your response is constructive.

do you know that some of the Banks own shares in some of the Micro finance banks, some is even fully owned by some banks, So?....

and they are equally regulated by CBN as someone rightly said, so please I need someone with an experience and or a logical reasons why I should or should not.

GonFreecss1:



I would say it depends on the micro finance banks. The only Microfinance bank I can trust is NPF, and that's because I can see their books and know how much assets they have, profits and other things so they basically look strong and don't seem like the type that can go burst anytime soon. With that said, putting your money in a micro finance bank you don't know their financial standing and liquidity is a risk. My advice is to research the bank well, and if you are satisfied... go on and do it. Another thing to note is, such high rates means they are desperate. You only have to look at the primary market to see how much CBN is selling the original thing. If Stanbic and co have lower or equal rates, why should a small Microfinance bank have something higher? There are so many stories that touch with micro finance banks. Do your proper research and after you are satisfied with your findings make your conclusion... but my own conclusion is those deals even though they are juicy, reek of more risk you don't need for a few extra %.

yinkaoke:
Hello house,

Please does anyone know about investing in any of the micro finance bank for Fixed deposit; I got their rate guide today and its so high and tempting, I need to know if theirs any risk associated with investing with them.

there rates are 15%, 17% and 18% for fund in the range of N1M - N9M for 90,180, 270 & 360days.

Please any one ever placed funds with them

freeman67:



There is more to Nigeria Microfinance banks than meet the eyes most time.. I do not know how stiff their regulation is especially because the little interest I have with died in my first attempt to to check them out...

If you were ardent reader of this thread before now you will see where someone here said his friend invested in one and was not able to get back his capital as when due...

Also, usually with regular commercial banks depositors funds is the safest. At least we see Skye bank just had issues and CBN took over and sold it to polaris bank. Same with other banks. With Microfinance banks there is actually no guarantee with that. Lots of Microfinance banks have closed shops without the depositors knowledge and them getting back their deposited funds and nothing has happened. You may not have heard about Trim Microfinance bank before, it went under with people's money. Even the depositors couldn't not get back their money and nothing happened.
You can open the thread below for a testimony of another Microfinance that went under last yes..
https://www.nairaland.com/3805249/femaz-microfinance-bank-abuja
The list of some closed by NDIC
http://ndic.gov.ng/closed-microfinance-banks/

So you need to thread carefully... If you must invest in them take time to research on the one you want to use.. Most of them are good in luring investors with big offers without ability to deliver... They will pay you interest till its time to get pack your capital then you will see the ponzi side of them.

yinkaoke:


Thanks so much you made lots of sense; but let me say this, why I may not agree with seeing their high rates as being desperate. Do you know that mico finance bank serves majorly the grass root people and do you also know how much they give out loan to their customers, their loan interest to their customers is mostly 60% annual, so a fixed deposit fund of even 25% is still ideal for a well functioning micro finance Banks. their interest on loan is far higher/expensive than that of the Banks and also easy to access.

I completely accept with your advice on doing my due diligence before engaging my fund. I am on top of that just need someone with experience to share and some brain thought through experts

Magnetron:

What rate were you given? And tenor as well.

GonFreecss1:



I would say it depends on the micro finance banks. The only Microfinance bank I can trust is NPF, and that's because I can see their books and know how much assets they have, profits and other things so they basically look strong and don't seem like the type that can go burst anytime soon. With that said, putting your money in a micro finance bank you don't know their financial standing and liquidity is a risk. My advice is to research the bank well, and if you are satisfied... go on and do it. Another thing to note is, such high rates means they are desperate. You only have to look at the primary market to see how much CBN is selling the original thing. If Stanbic and co have lower or equal rates, why should a small Microfinance bank have something higher? There are so many stories that touch with micro finance banks. Do your proper research and after you are satisfied with your findings make your conclusion... but my own conclusion is those deals even though they are juicy, reek of more risk you don't need for a few extra %.

GonFreecss1:


Exactly. Hehehehehe. Your point on the ponzi term was funny but true.

yinkaoke:


Thanks a lot for this its a caution and made more sense. Like i said earlier I am doing my due diligence on a few proved ones owned by Banks and multinationals.

One of the Logic of every business is that you invest fewer sum in an unknown/risk territory that you have done lots of research on but there are not further data for further research as such you test the waters with fewer resources of less value.

Ever read who move my cheese, I am an investor in that light of wisdom.

Once again many thanks for your wisdom.

NL1960:


You have seen their real books or their 'cooked' books?.

GonFreecss1:


Hahahaha. Honestly I don't know. I will need to verify who their auditors are though. I trust the big 4 than most other audit firms, not saying they are perfect but at least we can be sure they won't be as foolish to go overboard with their book cooking.

NL1960:


Are you sure?. Who were the auditors of the several banks that had failed and collapsed?. Who pays the auditing firms?. CBN or NDIC or the Banks they are auditing?. He who pays the piper dictates the tune.

GonFreecss1:


Are you saying the big 4 were involved in auditing those banks? If it is as you say then we can as well just remove all our money from all banks, bonds, Tbills, money market funds and the stock market and put it in Bitcoin as it's trust less. Though I will need to do this research, because this is a very scary thought. Something many people are not thinking about.

NL1960:


I do not know o. Do not also forget that the CBN and NDIC also regularly examine these banks.

Cast your mind back to the time of the stock market bubble where companies were well packaged when they are about to come out for public offers. That was when you will see a stock gaining the maximum percentage on a daily basis even without any new information about the company. No be today dem dey 'cook' books for Nigeria.

TheSam:
Good day All, please is it a good idea to obtain foreign loan at 2% annual interest to invest in Tbills since interest rate is usually 10%-13%? I need candid advise so I can weigh the pros and cons.

katamo:


First of all, you will be hard pressed to get a loan at 2% annual interest rate. It is more likely to be in the high single digits.

In any case, as others have pointed out, you will be exposed to exchange rate risk. So if the naira per dollar/euro exchange rate moves against you (that is, if it goes up) by the time your T-bills mature, you will be exchanging the same amount of naira for less dollars/euros. With the recent increase in interest rates in the US and other countries, investments in those countries are becoming more attractive to foreign investors who have been invested in the Nigerian market and you can see this in the increase in investment outflows over the last couple of months. The Nigerian government has been using foreign reserves to intervene in the forex market to keep the naira stable over the last few months - hence the trend of decreasing foreign reserves. What you propose looks to me like a risky strategy in the current environment particularly if oil prices decrease which will impact our ability to replenish our foreign reserves which we are using to keep the exchange rate stable.

jpphilips:


You can only do that for dollar denominated instruments.

Mfunkynation:

my advice..... just dont look in their direction

Chukason1:
Hello house , I came across an investment app Cowrywise they offer a high rate interest with various tenures ... Please how safe is saving money in all these apps?? Has anyone use them

royalzee:
Good evening everyone. Pls, can someone educate me on how the SECONDARY MARKET works, and how interest rate calculations are being done? Just in case it has already been discussed in this forum, kindly refer me to where I can i find useful infos.

Thanks as I await responses.....

deepwater:
Even if I don't work for the federal government, they would keep paying my house rent until I complete my house.

#TBillsThings
If you know, you know

LadyBeee:
but the money is too small joor. Imagine getting just 31k on investment of 1.2m for 91days

LadyBeee:
but the money is too small joor. Imagine getting just 31k on investment of 1.2m for 91days

LadyBeee:
but the money is too small joor. Imagine getting just 31k on investment of 1.2m for 91days