Everything you need to know about Treasury Bills

What are Treasury Bills?

Treasury Bills are short term government debt instruments issued by the CBN. This is one of the several ways the government raises funds. The CBN also uses treasury bills to control money supply in the economy.

How are Treasury Bills Sold?

Treasury Bills are sold through a bi-weekly auction conducted by the CBN. Buyers are requested to quote bids following which the average minimum bid is selected.

Where can I buy Treasury Bills?

Treasury Bills can be bought through any official dealer/Agent/Bank.  ARM Securities can also help you buy your Treasury bills.

When is it usually sold?

Treasury Bills are sold every other Wednesday (bi-weekly) as announced by the CBN. The CBN announces issuances on their website and in the pages of the Newspaper. This information can also be found on the DMO’s  (Debt Management Office) website.

How Can I Buy Treasury Bills?

Simply complete our T-bills application form and fund your account with the desired value.

Are Treasury Bills Safe?

Treasury Bills are one of the safest forms of investment and are backed by the full faith and credit of the Federal Government of Nigeria

Apart from the Interest Rates what are the benefits?

  • A good source of steady stream of income
  • Treasury Bills are a good investment outlet for your free and disposable cash
  • Treasury Bills are good investments for people who wish to save
  • Treasury Bills are also tax free
  • Treasury Bills are very liquid and can be converted to cash quickly
  • They can be used as a collateral

Are Treasury Bills Taxable?

Interest derivable from Treasury Bills are not taxable.

Bidding Process

What is the bid rate?

The bid rate otherwise called your STOP RATE is the likely interest rate that you have indicated to receive for the principal that you are investing in the T-bills.

What if I don’t have a Bid rate?

If you do not have a Stop Rate or you are not sure of a rate you can select the prevailing market rate option on the application form.

Can I still buy if my Bid is Rejected?

Yes, you can purchase T-bills from the secondary market by completing the same T-bills application form.

TENURE AND MATURITY

What are the durations (tenor) for the T-Bills?

T-bills are usually for 91days, 182days and 364 days.

Can I sell before Maturity?

Yes, you can sell T-bills before maturity.

When is the interest paid?

The interest element of a treasury bill is paid to you upfront and credited to your bank account.

Can I roll over my Investment?

Yes you can roll over your Investment

Would you like to invest in Treasury Bills or make further enquiries about adding Treasury Bills to your investment portfolio, contact us on 0700 CALLARM (0700 2255 276) or send an email to [email protected].

How we think about money- Busting Money Myths (1)

How we think about money- Busting Money Myths (1)

Money is one of the few things everyone never stops thinking about. We are either thinking of how we need it, how to get it or what to do with it. Our world view, orientation to life and many other factors contribute largely to our perception of money. It begins with watching our parents handle their finances to the books we read and the experiences that shape our life. Largely, many of us have come to believe popular money myths and have taken financial decisions based them.

Which of these myths do you agree with?

–          If you earn more you will be rich

–          My partner will always take care of me

–          Inflation is not a significant problem

–          Women are not good with numbers

–          Money can’t buy happiness (neither can poverty)

–          If you work hard you will be rewarded financially

–          Having money means having fewer worries

–          Financial matters are too complicated to understand

–          Financial planning should be left to the experts

–          Credit makes purchasing easy

–          Money is the best indicator of success

They are not altogether untrue but they are also not credible enough to form the basis of the financial philosophy from which we take financial decisions.

For instance, the assumption that earning more will culminate into wealth is probable until you consider factors like inflation and increase in family size/cost of living alongside increase in income.   While many married women, perhaps even men, rely on the joint force of their spouse’s income combined with theirs to make financial projections, occurrences like job loss, loss of affection or even like divorce or demise easily change the tide.

Recent experiences in the country have more than proven that inflation can quickly reduce the value of money, making a sum that would have been abundant less than enough. Women all over the world are successfully steering the financial wheels of large organisations, easily debunking the myth that women are poor money managers. Can money buy happiness? That depends largely on what happiness means to you. Whether money can reduce your worries or not is a function of the kind of worries you have. Your definition of success determines the possibility of being an indicator of how successful you are. While many have built conglomerates on borrowed funds, many have also dug their way into burdens of endless debts.

We could go on about the myths and it will only get clearer that these assumptions are hardly the foundation for financial freedom. Issues regarding finances are not too complicated for everyday people to decipher neither should we make financial decisions haphazardly.

In the next edition of these series, we will pinpoint critical factors to consider in our relationship with money, with regards to achieving our financial goals.

Should you require further information, write to us at [email protected] or connect with us on social media- Facebook, Twitter, and LinkedIn. You can also call 0700 CALLARM (0700 2255 276) or visit our Investment Center nearest to you.

The post How we think about money- Busting Money Myths (1) appeared first on Realising Ambitions.

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