What is Treasury Bills
I do not believe in plenty grammar when it comes to making money,
the way you need money to grow your business, the federal government also borrows money to run the government affairs.
TREASURY BILLS IS SIMPLY A WAY YOU BORROW MONEY TO FEDERAL GOVERNMENT, AND THE FEDERAL GOVERNMENT IN-TURN PAYS YOU AN INTEREST FOR USING YOUR MONEY TO DO BUSINESS,
JUST LIKE THE WAY YOU BORROW MONEY FROM YOUR FRIENDS OR YOUR BANK AND PAY THEM BACK WITH INTEREST, that is how it it with how you can make good cash from treasury bills.
I know you will say ‘borrow money to federal government’ again? yes of course, now the sweet part you want to hear is …your interest is paid to your account immediately, while your main money is breathing.
now for those who like grammar before making money, Treasury bills (T-bills)
How You Can Make Good Cash From Treasury Bills
You can borrow money to federal government through your bank, all you have to do is to go to your bank, go to the marketing unit or meet your account officer,
1. Buy a bill with an interest upfront
2. Wait for the yield period
3. Get your money back + interest
Note; Treasury Bills are tax-free, very liquid and
can be converted to cash quickly
you can invest in treasury bills, get your interest and go to sleep, while your main capital is save, Treasury Bills is a good way of saving your money , if you refer to my post on ‘financial literacy’ this is one of the surest ways of saving your money without stress, and equally a good source of steady
stream of income.
Treasury Bills are a good investment for people who wish to save and a good outlet for your free and disposable cash.
make good cash from treasury bills
T-Bills are discount instruments and they are so called because the investor gets its interest upfront. This means that the interest promised on a T-bill instrument is payable on the very day the investment commences. For instance,
if a T-bill promises a 10.0% rate per annum and an investor wants to put in N100,000, the investor pays only N90,000 from the day of investment but gets back N100,000 at maturity. The maturity value (N100,000) is referred to as face value while the initial investment (N90,000) is discount value
Are Treasury bills safe?
Treasury Bills are one of the safest forms of investment and are backed by the full guarantee of the Federal Government of Nigeria.
When is the interest from Treasury bills paid?
The interest element of a treasury bill is paid to you upfront and credited to your bank account. That is to say, you receive the interest the same day you invest in it, For example, if you purchase a ?100,000 TB with an interest rate of 10% and your account is debited with ?90,000 as such your ?10,000 interest is paid up front. Upon maturity, you are paid the face value ?100,000. simply put, as soon as the investment period is over, you are paid your initial investment of #100,000 back.
Can I sell my T-Bills investment booked via this platform to another investor?
No, you cannot sell T-Bills before maturity booked via this platform.
Can I roll over my investments?
No, you cannot roll over your investment on this platform.
What are the durations (tenors) for Treasury bills?
The tenors and rate are always available on the platform as advised by the bank.
What is the minimum amount I can buy?
The minimum purchase is ?100,000 using this platform and ?5,000,000 maximum
How can I buy Treasury Bills?
In summary,
Treasury bills also known as T-bills are security issued by the government through the Central Bank of Nigeria. When you buy one, you are essentially lending money to the government. Here, the term security means any medium used for investment, such as T-bills.
Treasury bills are one of the safest forms of investment in the world because they are backed by the Nigerian government. They are considered risk-free. They are also used by many other governments throughout the world.
Invest in treasury bills today and you will grateful you did, we await your comments and questions and if you find this interesting, kindly share with friends and loved ones, This is CAMPUS TIMES NIGERIA.
