What are Treasury Bills & why are they the easiest and safest means to invest your money? | Welcome to Linda Ikeji's Blog

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Sunday, 23 August 2015

What are Treasury Bills & why are they the easiest and safest means to invest your money?

Treasury bills are amongst the easiest & safest means of making personal investments. Governments issue treasury bills as a way of raising or borrowing money from the public.

In view of this, when you buy a treasury bill, you are lending the government money for a short while. At the end of the agreed period, which is called the maturity date, you get your money back with interest.

The longer the maturity date, the better the return on investment. T-Bills are one of the safest ways to invest your money because they are backed by the government. 


How do treasury bills work? Treasury bills have a face value. This face value is the actual amount that the Treasury bill is worth. However, treasury bills are usually sold for less than the face value. For example, if you buy a treasury bill for ten thousand Naira, you may pay just nine thousand eight hundred naira for it. When the maturity date of the Treasury bill comes, you will receive that total face value of ten thousand Naira. This means that you made two hundred Naira from your Treasury bill investment.

If you are interested in investing in treasury bills here’s how to go about it. Treasury bills can be bought through your bank – the process is simple. Get in touch with your bank and you will be put through. You can buy treasury bills for as low as N1, 000 and in multiples of N1, 000 after that. 

You can invest your T-Bills for 91 days, 182 days or 364 days. This means for example that, if you invest for 91 days, your investment will mature after three months. If you invest for 182 days, your investment will mature after six months and so on. 

Apart from being a safe way to invest, treasury bills have many other benefits:
•          Number one, you earn interest. This interest can be paid to you upfront.
•          Treasury bills are a good source of steady income. They are affordable and almost anyone can invest in them.
•          Treasury bills can easily be converted to cash. This means that you can easily sell your treasury bills to someone else.
•          They can also be used as a collateral for bank borrowing
So when thinking about ways to of investing your money, you may want to consider investing in treasury bills. It’s an easy way to get the money you already have to earn more for you.
This has been courtesy FSDH Merchant Bank Plc as part of The Bankers Committee Financial Literacy Public Enlightenment Programme brought to you by The Bankers Committee, comprising all the commercial Banks in Nigeria and the Central Bank of Nigeria, CBN.

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49 comments:

maggie said...

This is the type of enlightenment we need you Linda

Adeagbo Kabir said...

Very useful and enlightening info. Many thanks to Linda and FSDH merchant bank

Unknown said...

Nice and educative post.. Wish we could get more stuffs like this and not the Kardashians upload

KCE said...

Nice one....nver knew one could but treasury billz for a low as 1k. Use to think na big man things

Anonymous said...

Rubbish. One of my sister who invested 10m in treasury bill has been crying, telling me that her account officer tricked her into that. The way the said it is not how it is coming. 419 in disguise.

Anonymous said...

This is the best thing you have posted on your blog

Unknown said...

An eye opener.

Unknown said...

An eye opener

Blog It With Olivia said...

#noted





#IT will ONLY get BETTER
#it MUST end IN PRAISE

Oden'Igbo said...

So is Bukharin trying to ask us for money?
Mbakwa! Mụnwa ekweghi. Ihe nke a ọ wụdị gịnị?

Anonymous said...

the kinda things i wanna be reading about

Mihearty said...

Nice one

Anonymous said...

Dope News!

NaijaDeltaBabe said...

Cool

Unknown said...

Interesting much

Unknown said...

Okay seen and noted!











#TeamBlessed#

Anonymous said...

Treasury bills has more accrued interest than fixed deosit. While you get 3%for fixed deposit for 91days,you get like 12% on treasury bills.

Unknown said...

Thank you Linda. Your blog has been a source of awareness to many of us. Each day I learn new thing and also know about the happenings around the world. This is awesome! I keep recommending this blog to people to download load and hook up to. The enlightenment on Treasury bills has blown my mind. What a knowledge! I'm going to invest on it immediately.

Good Nigerian said...

Thank you Linda.

bella said...

Very educative! Plz bring more of this to us. Thanks!

Black Prince of Africa said...

Yea the interest rate is high & quite encouraging...

Unknown said...

Another broad day light scam . after they will tell u it has crashed like d stock market ...

Love.Eating.Pussy said...

@Anonymous 6:03.... I understand that you must comment to keep linda in business but musf u share u stupidity while doing it all the time, If u sister was duped because of her ignorance of the capital market, that doesn't mean its fake or u think CBN and the commercial banks would be advertising a fake means of making money... Smh for your stupidity, just to let u know My parents bought me n my siblings treasure bills in 1988 in first bank and today 27 years later, i dont have to even work to earn a living. I live like a king now cos my money is working for me so i dnt have to stress my head.... So pls if u don't know anything about treasure investment shut the fcuk up and stop dissuading people from making wise investments

Anonymous said...

Every time nude people and gay guys. Here the change we advocated linda

Unknown said...

@ Linda do u even read through the comment Section? If u do, u must have noticed that everyone is applauding this post cos we've grabbed knowledge from it..we know you have to gist about celebrity cos it pays u most and secures fame for you.. But please find time and means to educate us sometimes..some foolish fools will ask me to go make researches on my own.. But they don't know that one can't acquire all in a lifetime not even einstein did.. Nne biko nyere anyi aka

Anonymous said...

Another plus is that you do not pay tax on interest earn on Treasury bills

Anonymous said...

never under estimate the power of a blogger to spread useful info, but linda if you keep on showing us people's manhood all the time, you will misplace this opportunity God has given you to inform Africa and the world at large.

knowurway.com said...

Maxwell Aka, u re 100% right.

Ikechukwu O. Agbo, Esq. said...

Wao, this is great. If you can keep posting more responsible things like this, you could attract more responsible people to your blog. I recommend that the committee and more agencies should patronize you more with pieces of educating information of this nature. Thank you Linda.

Anonymous said...

Mumus you invest on it and get peanuts, if you have a business, u will invest and get more that the interest on treasury bill, I tried it, the interest isn't much

Unknown said...

What more can I say? I have benefited from Treasury Bills and still benefiting. It's d way 2 go as long as you have an idle Cash.

Anonymous said...

Good news

Anonymous said...

Good news

Anonymous said...

I don't comment on your blog but this is the best post ever , I've wanting to know more about treasury bills n bonds . Thanks

Unknown said...

Nice one Linda

Unknown said...

Nice one Linda

Anonymous said...

Nice one Linda

Olabode Ajose said...

Linda ikeji,This post is the best post ever for me.

Unknown said...

Hahahahahaha

Mazi UKONU said...

Well Said Mazi Maxwell Akalonu...Lindodo Biko nyere umu nne go aka oh!

Anonymous said...

Kudos
More of this

Jay kay

Anonymous said...

Lol. Govt investment. What if you invest a large amount and they refuse to pay u. Nigerian Govt does'nt evn obey court orders. It can b really unreliable, except for small amount of money Wich you can forfeit 2 d Govt, mayb 'cos u r patriotic ( dat is if they r not just embezzling the money and not paying u back), plenty problems with dis country.

Mandy Brown said...

Thanks lindy

Anonymous said...

Thank you for this information. For the benefit of those who are in doubt, I've been into treasury bills for sometime now. Your money is safe even if your bank goes bankrupt, it does not affect your money because it is backed by the CBN. God bless you Linda.

abujakenneth said...

@Sliliky, please how did your parents do it? How much did they invest that makes you and your siblings to be living like king. I have some money to invest and I will need your further advise. Please reach me at assanig@yahoo.com and I will appreciate. Government most at times renege on their contracts with individuals. NNPC is a government establishment that is supposed to make contributions in funding oil and gas projects with their JV partners but they don't contribute their own percentage. Moreover you don't have insult the anonymous because that was his own experience.

Lucile coconut oil,carrot oil and black soap Abuja 07059605320 said...

I have invested in it with 1m,they paid me 53k after 3 months.i think it is good for idle money

Anonymous said...

Linda, this is quite enlightening.I am really blessed. Pls lets have more of this kind, not just gossips.

Kachi said...

only 44 comments for an article this rich after how many days. Gues most ppl didnt even read this. Little wonder Linda spends more time on news that will fetch her comments. But pls dont stop. One educative article a day will keep ur blog healthy. but one question pls, which bank is collecting as low as 1k for T.Bills, cos i tried to buy at my bank last year bt was told the minimum is 1m plus you can only buy at the beginning of the year.

Anonymous said...

You guys do realize this post was paid for by FSDH Merchant Bank right? Yep, 50k. Not because the blogger's got a change of heart or strategy. Look forward to more eggplants/manhoods, Kardashians (correct spelling suggested by my phone!) and the lot. It works for her so ain't no change coming :)

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