Investing in treasury bills through your bank – punch newspapers

Treasury Bills of Nigeria are short-term securities issued at a discount for a tenor ranging from 91 to 364 days, such that the income received is the difference between the purchase price and the amount received at maturity or prior to the sale, according to the Central Bank of Nigeria.

To invest in Treasury Bills, all that a customer needs to do is to go to any of his/her bank branches, fill and submit an application form, state his bank account, amount to be invested from his deposit and the preferred tenor.

It is one of the investment areas accessible through banks to enable customers to invest in high-yielding assets, which are non-risky and tax-free.

A report by www.thestreet.com further explained that Treasury Bills are the shortest-term Treasury securities, those that mature within a year (from the time they are issued). Union bank of india interest rates 2013 The Treasury issues three- and six-month bills weekly and a one-year bill (the so-called year-bill) once a month.

Treasury Bills are discount instruments.


Fixed deposit interest rates in indian bank Rather than making interest payments, they are issued at a discount to face value and mature at face value. Bank loan interest rates in sri lanka The interest rate is a function of the purchase price, the face value and the time remaining till maturity.

Bills are quoted in terms of their discount rate, or interest rate based on a 360-day year. Bank loan interest rates for business As with bond yields, when the discount rate is going up, a bill is losing value. Bank fd interest rates comparison A “bond-equivalent yield” can be calculated for a bill, to allow for a comparison with other debt instruments

According to http://money.howstuffworks.com,Treasury Bills, also known as “T-bills,” are a security issued by the government. Rates of interest offered by different bank When you buy one, you are essentially lending money to the government. Bank interest rates in india for senior citizens Here, the term security means any medium used for investment, such as bills, stocks or bonds.

Treasury Bills have a face value of a certain amount, which is what they are actually worth. Standard bank interest rates fixed deposits But they are sold for less. Commonwealth bank interest rates term deposits For example, a bill may be worth N10,000, but you will buy it for N9,600. Bank interest rates 2014 india Every bill has a specified maturity date, which is when you receive the money back. Best bank account interest rates The government then pays you the full price of the bill, in this case N10,000, and you earn N400 from your investment.

The amount that you earn is considered the interest, or your payment for the loan of your money. Canara bank fd interest rates 2013 The difference between the value of the bill and the amount you pay for it is called the discount rate, and is set as a percentage. Highest bank interest rates country In the example above, the discount rate is four percent, because N400 is four percent of N10,000.

Treasury Bills are one of the safest forms of investment in the world because they are backed by the government. Bank of india interest rates They are considered risk-free. Bank interest rates for fixed deposits in sbi They are also used by many other governments throughout the world.

Saving money is advantageous because it provides people the opportunity to earn interest while keeping their money safe. Fixed deposit interest rates in indian bank 2015 Investing money can be risky, but it offers higher returns than bank savings accounts and can help people build wealth over the long-term, according to http://thefinancebase.com.

Savings accounts and other savings vehicles such as fixed deposit are advantageous because they provide the accountholder with the opportunity to earn interest on his savings, while having little to no risk. Bank account interest rates canada While the interest rates are typically low, the amount earned in interest is incentive for saving. Bank interest rates on fixed deposits for senior citizen Savings accounts and money market accounts are designed to provide the accountholder with anytime access to his money. Highest bank fd interest rates 2013 Fixed deposits impose a penalty if the funds are withdrawn before the expiration date of the certificate, but generally have higher interest rates than savings accounts.

The advantage of investing is the opportunity it provides for building wealth over the long-term. Bank of melbourne interest rates Diversification is a risk-minimising concept that spreads money between different types of investments, which can offset losses in one investment type with gains in another.

Traditional investments include stocks, mutual funds and bonds. Bank account interest rates comparison These are securities that are issued by companies and governmental units for the purpose of raising capital.

Real estate is another effective type of investment, as it is generally considered to be safe and conservative. Andhra bank interest rates fixed deposits Some people invest in collectible items. Best bank deposit interest rates uk Investing money in stocks, bonds and real estate, however, does come with risks and is not guaranteed a return. Latest bank interest rates on fixed deposits in india Because of the risks, the returns on these investments are typically higher than those on savings accounts.

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