mikylon:
...
which is more preferable, stashing money into money market or stashing into treasury bill. Which would guaranty high yield annually.

This is NOT financial advise, but something to consider. From our research:

Amount
MMF allows lower minimums, typically from N5k,
TBills typically from N100k, although UBA advises it accepts from N10k primary market we have never tested this.

Flexibility
MMF typically have a minimum holding period of 30days after which you can treat it as a savings account effectively, but each provider has its notice period for withdrawals, none more than 7days we believe
TBills can have stiff penalties or loss of some of your capital depending on the rediscounted rate and early termination date. However, sometimes, no penalties and the rediscounting rate is less than the rate you originally got. So, you can profit

Deductions
MMF usually has no charges if you stick to the holding period, typically 30 days
TBills primary 91, 182 & 364days
TBills secondary 7 - 364days

Rates
>MMF typically beats even the true yield of 91 day Treasury Bill rates; check daily MMF rates @ https://fman.com.ng/mutual-fund-price-list/, and also see reports from individual providers such as Ecobanks MMF @ https://www.ecobank.com/corporate-investment-banking/wsa-management/collective-investment-schemes.

>182, even better, 364 day TBill rates typically trump MMF. See https://www.cbn.gov.ng/rates/govtsecurities.asp for 30 Jan's auction and other historic TBill primary market auction rates

>MMF rates as advertised/published are regularly disputed by those with MMF accounts; see https://www.nairaland.com/1912965/mutual-funds/138. It seems checking your daily balance comes with the territory, and customer service is not necessarily as well staffed.
With TBills you get your interest upfront and simply diarise the maturity to ensure your capital is recredited as it usually is. So, TBills typically gives less stress

Summary
Simply put, if you have less than N100k, but at least N5K...OR want to invest any amount for less than 182 days, strongly consider MMF.

However, if you are a control freak, or have OCD like some of us and want to know the exact rate you will earn...OR do not want to be login in to check if your money tree is growing every day/week...want to earn interest upfront...or prefer tenures 182 days or more, TBills might be your preference.

Also consider, using the strengths of both as a strategy; i.e., replacing your savings account with MMF (require some planning because of notice required for withdrawals) and TBills for midterm investment...one day even FGNBonds for longterm if the rates get more distinct/higher than 364day tbills.

Plus10:
Please house when is the next primary auction?

Wednesday, 13th February. Get your request in preferably by Monday 11th.

UNIXLover:
Hello guys, am new to treasury bill, whats the best way to buy T-Bill? I currently operate Access and GTB .Thank you

There are 2 ways primary market and secondary. See comparison of the 2 here: https://www.nairaland.com/878880/treasury-bills-nigeria/679#75118802.

The latest rates we have seen, GTBank has offered more than Access. But, this moves daily. If you decide on secondary market, ask your account officers or a local branch for rates for a duration that suits your needs. Please always share with us here

You cannot know primary rates beforehand. However, in last Wednesday's auction, successful bank bids were 10.85-11% for 91 days, 12.85-13.5% for 182 days and 14.3-15% for 364 days. This can be a good indication of rates in the next 13th February primary auction. Note this thread currently believes rates are in decline, so it expects rates to fall in the near future.

zamirikpo:


If only u can scan through this thread , say at 10pages intervals u would get the answers.

This matter has been discussed at length.

Tell. Them. Sir.

CompareDBest:
Wednesday, 13th February. Get your request in preferably by Monday 11th.

Thanks

can somebody help with firstbank and stanbic secondary rates for today

Here's what I propose: onwards, when someone asks a question that has been discussed here several times, we should just ignore them; don't even tell them to read previous pages. Person wey serious to invest em money no go wait for anyone to tell am to read previous pages to educate themselves on how to use their hard earned Naira.

Thanks.

Nnamz:
Here's what I propose: onwards, when someone asks a question that has been discussed here several times, we should just ignore them; don't even tell them to read previous pages. Person wey serious to invest em money no go wait for anyone to tell am to read previous pages to educate themselves on how to use their hard earned Naira.

Thanks.

An adage says, person wey dey ask question, no dey miss road.
Pointing them to right direction (previous pages) is not that bad. IMO

eagleeye2:

An adage says, person wey dey ask question, no dey miss road.
Pointing them to right direction (previous pages) is not that bad. IMO

When I first heard about tbills, I didn't come here asking stupid questions. I first of all researched about it, then found this thread and read extensively on it; I am talking of months of reading up on tbills befor making my first investment. So while the adage is right that person wey ask questions no go miss road, let those questions not be "what's the difference between primary and secondary market". I wanna blow my brains out when I see such questions, and I wouldn't be surprised at the number of people that have left this thread cause of such questions. Soon, I'm gonna join the que and leave this thread cause of such repetitions here.

Nnamz:


When I first heard about tbills, I didn't come here asking stupid questions. I first of all researched about it, then found this thread and read extensively on it; I am talking of months of reading up on tbills befor making my first investment. So while the adage is right that person wey ask questions no go miss road, let those questions not be "what's the difference between primary and secondary market". I wanna blow my brains out when I see such questions, and I wouldn't be surprised at the number of people that have left this thread cause of such questions. Soon, I'm gonna join the que and leave this thread cause of such repetitions here.

This is the most annoying question i have seen on this thread. I just wonder if the person asking such a question ever went to school. To think we are in the information technology age with google for searches. Even Nairaland has a search facility. I always also wonder if the person is asking such a question from an internet enabled phone. It seems some people just think that an internet enabled phone is only used for chatting and doing facebook.

People do not even need to read from page 1. Just reading current discussion and observing the current flow of discussion can give you an idea of what to search for. For instance, if somebody ask 'please who know the current secondary market rate of bank XYZ'. The new comer reading can easily go and google 'secondary market rate' from where he/she will get what is a secondary market instead of asking 'what is secondary market'.

Please my TBills with Stanbic expires on 30th January 2019, up till this minutes, I have not receive alert from them. Please How long does it take for them to credit?

dyonpoint:
Please my TBills with Stanbic expires on 30th January 2019, up till this minutes, I have not receive alert from them. Please How long does it take for them to credit?

really ...check u accounts

Update on Gt nonsense.....after my complains they refer back to account officer...called the idiot he say it was a mistake he wanted to type 364 but input 91 in the soft ware....not understand what this explanation means since I wrote a letter taught they scan the letter to upload ....the branch manager called and mail that they are sorry ....hmm what the solution I should wait 90 day what da f....uccck u i was suppose to get 1.8 now idiots 300 k ....may be need to mail the ceo or hq

ahiboilandgas:
really ...check u accounts

I have checked like 1 million times.

dyonpoint:
Please my TBills with Stanbic expires on 30th January 2019, up till this minutes, I have not receive alert from them. Please How long does it take for them to credit?

Within 24 hrs, from experience.

dyonpoint:


I have checked like 1 million times.

report to the bank immediately

dyonpoint:


I have checked like 1 million times.

U must have the wrong date or something is wrong somewhere, usually the money drops on the due date.

Was it primary or secondary, what tenure, what bank,...expantiate

It's primary. I will in the bank first thing tomorrow.

CBN OMO Sale Oversubscribed by 153% as Yields Jump to 14.04%
https://businesspost.ng/2019/02/06/cbn-omo-sale-oversubscribed-by-153-as-yields-jump-to-14-04/

Please someone should educate us on this safe keeping fee thing.

teeielts360:
Sup Guys.
I have a little enquiry I need to confirm up here, and it's about the bank charges attached to investing in tbills regardless of whether it's in the primary or secondary market.

Based on multiple successful tbill tenders I've done, both in the primary and secondary market over time, specifically with stanbic IBTC, I've come to the conclusion that the standard bank charges for investing in tbills with STANBIC are:

TRANSACTION FEE(standard flat fee)
Primary market : 315Naira
Secondary market :300Naira.

COMMISSIONS (standard flat fee)
Primary market : 100Naira
Secondary market : Non

SAFE KEEPING FEE
This, I know nothing of how they come about the figures.

Though not significant enough to lodge complains about, they do not correlate with the 0.125% concept.

Let's take the "CONFIRMATION OF INVESTMENT " @C505 posted up here on page 674 as an example.

The 0.125% rule doesn't work here at all.
If you make it a percentage of the "Face Value", "Discounted Value" or even the "Interest Paid Upfront ".
Non works.

I would like to get clarification on this, as my research and calculations so far seem to have failed me because, at any point I purchase tbills, the total sum of charges deducted is still significantly less than 0.125% of anything.

NB: I have tried out the Tbills Calculator. It's pretty impressive but doesn't answer the questions I seek.
Even the calculator says "charges varies and are not 100% accurate ".

Happyfellow147:
Please someone should educate us on this safe keeping fee thing.

We believe Stanbic calls it a different name from other banks; it is aka Custody or Custodian fees. It is charged on your full capital aka face/maturity/nominal value. By our calculation Stanbic & Union charge one of the lowest; likely 0.05% + 5% VAT. If FCMB figure 0.015% checks out, then it will be the lowest we know of. The biggest we have seen is Access Banks tbills.ng/Keystone/Unity custodian fee of 0.35%.

Some useful reads:
> https://www.nairaland.com/878880/treasury-bills-nigeria/232#50858427

> https://www.cbn.gov.ng/out/2014/bsd/transfer%20of%20all%20non-proprietary%20assets%20to%20licensed%20custodians.pdf

> Buying directly from the banks affiliated with approved custodians will probably give you lowest deduction: https://www.cbn.gov.ng/out/2014/bpsd/licensed%20custodians.pdf

> If you are PhD type: https://www.cbn.gov.ng/OUT/CIRCULARS/BOD/2009/GUIDELINES%20FOR%20CUSTODIANSHIP%20IN%20MONEY%20MARKET%20AND%20OTHER%20FIX%E2%80%A6.PDF. Excerpt: Remuneration - The Custodian shall be entitled to charge: a. custody fee of not more than 0.35 per cent per annum charged monthly; b. transaction cost of N500.00 per transaction; c. In addition, a custodian may share revenue with a non-custodian bank that appointed it as a custodian up to 20 per cent of the revenue earned on the business.

Rates today @ Stanbic


14.2 for 337

Good day guys, please is anyone dealing with FCMB here? Those guys really look unserious to me.

Just spent 20mins with a customer care personnel that is more interested in telling me about FD than Tbills which I asked her.

And to think that she opened her mouth to tell me that I don’t know what i’m Missing by not doing FD is st**pidly annoying.

Please anyone with the bank here to help me clarify some issues?

purityval:
Good day guys, please is anyone dealing with FCMB here? Those guys really look unserious to me.

Just spent 20mins with a customer care personnel that is more interested in telling me about FD than Tbills which I asked her.

And to think that she opened her mouth to tell me that I don’t know what i’m Missing by not doing FD is st**pidly annoying.

Please anyone with the bank here to help me clarify some issues?

Bro it been a while. Hope you're good? When will you be back here with your writing skill?

purityval:
Good day guys, please is anyone dealing with FCMB here? Those guys really look unserious to me.

Just spent 20mins with a customer care personnel that is more interested in telling me about FD than Tbills which I asked her.

And to think that she opened her mouth to tell me that I don’t know what i’m Missing by not doing FD is st**pidly annoying.

Please anyone with the bank here to help me clarify some issues?

Lol... Most banks will gladly tell you about fixed deposit than Tbills. Na their way

drotba:
Rates today @ Stanbic


14.2 for 337

Nice!!

Which Money Market Fund would this honorable house recommend... FBN, ARM, Stanbic or.....
Going by today's report on the Fund Managers Association of Nigeria, it seems FBN offers the highest yield

CompareDBest:
This is NOT financial advise, but something to consider. From our research:

Amount
MMF allows lower minimums, typically from N5k,
TBills typically from N100k, although UBA advises it accepts from N10k primary market we have never tested this.

Flexibility
MMF typically have a minimum holding period of 30days after which you can treat it as a savings account effectively, but each provider has its notice period for withdrawals, none more than 7days we believe
TBills can have stiff penalties or loss of some of your capital depending on the rediscounted rate and early termination date. However, sometimes, no penalties and the rediscounting rate is less than the rate you originally got. So, you can profit

Deductions
MMF usually has no charges if you stick to the holding period, typically 30 days
TBills primary 91, 182 & 364days
TBills secondary 7 - 364days

Rates
>MMF typically beats even the true yield of 91 day Treasury Bill rates; check daily MMF rates @ https://fman.com.ng/mutual-fund-price-list/, and also see reports from individual providers such as Ecobanks MMF @ https://www.ecobank.com/corporate-investment-banking/wsa-management/collective-investment-schemes.

>182, even better, 364 day TBill rates typically trump MMF. See https://www.cbn.gov.ng/rates/govtsecurities.asp for 30 Jan's auction and other historic TBill primary market auction rates

>MMF rates as advertised/published are regularly disputed by those with MMF accounts; see https://www.nairaland.com/1912965/mutual-funds/138. It seems checking your daily balance comes with the territory, and customer service is not necessarily as well staffed.
With TBills you get your interest upfront and simply diarise the maturity to ensure your capital is recredited as it usually is. So, TBills typically gives less stress

Summary
Simply put, if you have less than N100k, but at least N5K...OR want to invest any amount for less than 182 days, strongly consider MMF.

However, if you are a control freak, or have OCD like some of us and want to know the exact rate you will earn...OR do not want to be login in to check if your money tree is growing every day/week...want to earn interest upfront...or prefer tenures 182 days or more, TBills might be your preference.

Also consider, using the strengths of both as a strategy; i.e., replacing your savings account with MMF (require some planning because of notice required for withdrawals) and TBills for midterm investment...one day even FGNBonds for longterm if the rates get more distinct/higher than 364day tbills.

Finfree18:
Which Money Market Fund would this honorable house recommend... FBN, ARM, Stanbic or.....
Going by today's report on the Fund Managers Association of Nigeria, it seems FBN offers the highest yield

There's a money market thread here in the investment section. There you have gurus as well as fellow investors sharing ideas. . .I suggest you check it, you'll get d best advice there.

CompareDBest:
Check out my detailed answer in a recent page:
https://www.nairaland.com/878880/treasury-bills-nigeria/679#75118802


For small amounts, the flat deductions at the start make a bigger difference. You avoid some/all of (those commission fees & 5% VAT) in the Secondary Market. Without doing the math, we suspect Secondary Market will give higher net yield/interest if you wanted tenures close to 91 or 182 days. However, depending on which bank you use, Primary market might give better returns for a duration close to 364 days.

If you have to wait 2weeks for the next Primary market, then a same day Secondary market will likely give a better return. For example, one scenario is you lose a Primary market bid and your money sits in limbo (aka current account) for 2weeks till the next auction:

> say your bank's bid for 364days was 14.85%, but you missed that
> you might have gotten 14.85% in Primary, but the next day it could be sold for 14.5% in Secondary
> if you wait for the next primary auction, even if you get 14.85% again, your money has not earned (14.85%p.a. * (2weeks / 52weeks.per.year)) = 0.57%p.a. in that time
> this is same as you accepting a Secondary market rate of (14.85 - 0.57) = 14.28% the day after the primary auction you missed
> you would have earned more accepting 14.5%, even 14.3% in the Secondary market

Note: our assumption above is your N200k did not earn anything for the 2weeks before the next primary market auction. The calculations become more favorable for Primary market if you had your money earning a high rate during the 2week wait; e.g. in a top savings account, even better if you have a reliable Money Market Fund you have held for the minimum holding period and can push money in/out quickly and at no cost/charge.

In summary, if a long wait is involved till the next auction and/or your bank has some deductions that apply to primary market only (not secondary), most scenarios for N200k likely have Secondary market earning you higher, and with less stress.

. Thanks for taking your time to explain.

purityval:
Good day guys, please is anyone dealing with FCMB here? Those guys really look unserious to me.

Just spent 20mins with a customer care personnel that is more interested in telling me about FD than Tbills which I asked her.

And to think that she opened her mouth to tell me that I don’t know what i’m Missing by not doing FD is st**pi annoying.

Please anyone with the bank here to help me clarify some issues?

Good there ask them to show you the dept in charge if treasury bill. The actually tell you that nonsense but insist you don't want fd. Their rates are not bad for the ones I have done, they are about the same range with firstbank.

CBN Mops up N66b as Yields Increase to 14.12%
https://businesspost.ng/2019/02/07/cbn-mops-up-n66b-as-yields-increase-to-14-12/

dyonpoint:
It's primary. I will in the bank first thing tomorrow.

can you update us on this?