Thanks. I'll explore Euro bond and see how it goes.

Dsticks47:


All you need to know about Eurobond check here.
https://www.nairaland.com/4667123/eurobond

For Investment one VDF check my signature.

ahiboilandgas:
Why would any body do a t.b of 2 or 3 percent for 90 days when a saving account gives 4.5 percent per month....rationality is key.....if u leave 10m in a saving accounts it generate 40k monthly (no lost bids ) while tb 23k per months so in 90 day u make 120k while tb 63k ...only if u are biding 1 year

Thanks for the info, i was at First bank today. Rate is 4.05 on savings account. I've got to move my funds from current acc to my saving acc as they claimed current acc is not entitled to any interest. At least I can manage that till tbs soar. Once again, thanks..u r d kind (genius) of friend I want to have

We are averaging double-digit in inflation and TB/bond promising poor single digit. I think it doesn't make sense to invest in bond/TB for now.

unite4real:


I think rates are getting worse. It continues to defy economic sense.

Today's March Savings Bond Offer Circular shows a shedding of over 1% off the last one of February.

2-Year FGN Savings Bond due March11, 2022: 4.131% per annum
3-Year FGN Savings Bond due March 11, 2023: 5.131% per annum

and Inflation is moving opposite direction. I wonder how the graph will look like

pesty100:
first you divide interest received by principal then you multiply by 100 then you multiply by 12. You should get annual interest. Note tax has not been considered though it will reduce the amount received as interest but then it is irrelevant as it cannot be avoided.

I have follow ur instructions but am not getting a better results

ojesymsym:
Thanks. I'll explore Euro bond and see how it goes.

Ok you are welcome ..
For investment one Dollar fund check my sig.

Mfunkynation:

I have follow ur instructions but am not getting a better results

the rate you are getting is small?

pesty100:
the rate you are getting is small?

after calculating, the result was 3.35 something?

emmanuelewumi:



You are safe, not as strong and profitable as it used to be

Thank you. Would you recommend I move funds?

pesty100:
first you divide interest received by principal then you multiply by 100 then you multiply by 12. You should get annual interest. Note tax has not been considered though it will reduce the amount received as interest but then it is irrelevant as it cannot be avoided.

Good Morning. By Principal, do you mean the current account balance or the balance on the account before the interest was received?

pluto09:



The bank operated in a regulated environment.
The audited accounts have to be scrutinized and approved by the CBN before being released to the public.

For you to gauge the health of any bank,either mfb or dmb, there are key metrics you look for and not what people are saying which might be sentimental.

CAR, Liquidity ratio and NPL ratio are very important and if those ratios among others are very solid I will gladly do business with that bank.

True

tipzy001:
Good Morning. By Principal, do you mean the current account balance or the balance on the account before the interest was received?

lol. It's the balance in the account before interest was received. Let's say I woke up this morning and found that i received interest of 5000, i see my my balance in the account has increased to 1,005,000; to calculate interest rate i will remove the 5000 interest from the 1,005,000 I will get 1,000,000(principal) after that, I do this 5000(interest) /1,000,000(principal); it gives me 0.005.
0.005 is multiplied by 100 to get interest rate per month which is 0.5%. This 0.5% is then multiplied by 12 to get the interest rate per annum which is 6%.

Mfunkynation:

after calculating, the result was 3.35 something?

is this after or before considering tax and which bank is that

Which Bank please?

pesty100:
lol. It's the balance in the account before interest was received. Let's say I woke up this morning and found that i received interest of 5000, i see my my balance in the account has increased to 1,005,000; to calculate interest rate i will remove the 5000 interest from the 1,005,000 I will get 1,000,000(principal) after that, I do this 5000(interest) /1,000,000(principal); it gives me 0.005.
0.005 is multiplied by 100 to get interest rate per month which is 0.5%. This 0.5% is then multiplied by 12 to get the interest rate per annum which is 6%.

ozymes:
Which Bank please?

i don't know of any bank paying 6% per annum, am just using the illustration as an example

pesty100:
lol. It's the balance in the account before interest was received. Let's say I woke up this morning and found that i received interest of 5000, i see my my balance in the account has increased to 1,005,000; to calculate interest rate i will remove the 5000 interest from the 1,005,000 I will get 1,000,000(principal) after that, I do this 5000(interest) /1,000,000(principal); it gives me 0.005.
0.005 is multiplied by 100 to get interest rate per month which is 0.5%. This 0.5% is then multiplied by 12 to get the interest rate per annum which is 6%.

Thank you so very much. I got 4.28%

pluto09:



What you have there are not the exact audited reports.

However, I can find some useful information from the review by the rating agency up to 2017( no report for 2018 and 2019)
If what we have there are true reflection of the bank operation performance, I will like tio say that lapo is doing well.

You will do well if you can post more of your bank financial reports as this will help many to form an opinion devoid of sentiment and generalization...

I have the audited financial statement for Lapo mfb for the the following years 2014,2015,2016 and 2017 signed by our external auditor Akintola Williams Deloitte..will get 2018 soon.

pesty100:
first you divide interest received by principal then you multiply by 100 then you multiply by 12. You should get annual interest. Note tax has not been considered though it will reduce the amount received as interest but then it is irrelevant as it cannot be avoided.

I got 3.8% from stanbic.

Some people sabi maths oooo.

The cost of making transfer for eurobond/dollar investment is on the high side, imagine my friend was billed over 110k if he wants to transfer 30kusd, that's around 310usd. He had to rethink on whether to invest or not. A transfer that would have cost 52ngn if it were to be naira mmf or treasury bills.

SaintUlot:
The cost of making transfer for eurobond/dollar investment is on the high side, imagine my friend was billed over 110k if he wants to transfer 30kusd, that's around 310usd. He had to rethink on whether to invest or not. A transfer that would have cost 52ngn if it were to be naira mmf or treasury bills.

his money will retain its value over time against our naira, the price is pretty steep though but I think it's worth it

Your friend needs to do some analyses and query his motivation for foreign currency investment.

Since the funds is already in Dollar (dom account), he can manage the little monthly interest off it.

If the funds is in Naira, let him consider what he stands to loose if devaluation happens.

Also, if it’s Naira, he can open a Dom account with the corresponding bank he wants to invest in, that way there won’t be any transfer charges. E.G, United Capital Eurobond uses FCMB dom account, he can open a dom account with FCMB and proceed to invest with them.

The key is to research.

SaintUlot:
The cost of making transfer for eurobond/dollar investment is on the high side, imagine my friend was billed over 110k if he wants to transfer 30kusd, that's around 310usd. He had to rethink on whether to invest or not. A transfer that would have cost 52ngn if it were to be naira mmf or treasury bills.

pesty100:
is this after or before considering tax and which bank is that

just did the calculation.. Uba

tomtom370:
Your friend needs to do some analyses and query his motivation for foreign currency investment.

Since the funds is already in Dollar (dom account), he can manage the little monthly interest off it.

If the funds is in Naira, let him consider what he stands to loose if devaluation happens.

Also, if it’s Naira, he can open a Dom account with the corresponding bank he wants to invest in, that way there won’t be any transfer charges. E.G, United Capital Eurobond uses FCMB dom account, he can open a dom account with FCMB and proceed to invest with them.

The key is to research.

His money is in usd already, he was told even if he is sending from fcmb it has to be transferred. Funds will be transferred to an intermediary bank abroad before it hits the fcmb account. Sending from fcmb or from another bank account doesn't really count because it is the same procedure.

unite4real:


Let me repost my previous response on this below.


It is usually very tricky with FGN bonds. One rule of thumb is, always keep your eyes on the yield to maturity. For example, a bond could have a coupon rate of 15% and you are told that the yield is 10%. If u don't want to mess up with your head, just look at that 10% as your annual interest on your capital. Although you will be earning the 15% but on a lowered principal. For example, if you want to invest 8M on a bond paying 15% coupon and the yield is 10%; you will buy that bond with more than 8M depending on the year to maturity. Let's say you got the 8M bond at 10M, your coupon payments every 6 months will be 15% of 8M and your principal at maturity is 8M and not 10M. At the end of the day, if u factor in your initial 10M put in the bond, you will realize your interest is actually 10%. So if u want a bond, keep an eye on the yield unless you are getting it in the primary market and it's a new bond issue.

Your bank or discount house should help you. With banks, always patronize the headquarters or main branch Inna state or region so u can easily meet people with the knowledge

Starred

Mfunkynation:

just did the calculation.. Uba

maybe UBA reduced their interest rate? I won't be able to say with certainty because the interest rate I received last month was on money lodged on the 13th and it was 2.4% per annum but before then I was paid 4.1% per annum (as at January) . I would prefer someone else using UBA do the calculation and tell us the interest rate they received.

At the end of the day it makes little difference where you place your money since difference in rates is marginal.
I'd just sit back and relax other one may jump from fry pan to fire with all these clone MMM offering strange rates.

why? when I want to throw 300k for 3yrs

saajus:
We are averaging double-digit in inflation and TB/bond promising poor single digit. I think it doesn't make sense to invest in bond/TB for now.

Is this a good buy? @ Sir Emma.

Is this a good buy? @ Sir Emma

How do foreign investors hedge against the devaluation of the naira? For instance U.S investors who invest in Lagos State Government Bonds?

There are lot of wolves in human skin offering mouth watering investment. Be wary of them and remember the rule.

Rule No. 1: Never lose money.