If you’re seeking secure and safe forms of investing disposable income, investing in treasury bills is an excellent choice. Treasury bills are backed up by the full faith of the Nigerian government and asides from being used as a form of capital investment; T-bills can also be used as collateral for loans.
T-bills are an excellent investment for disposable income and a good financial plan for people who are planning to retire.
Nonetheless, treasury bills are liquid and can easily be converted to cash.
Tips to Help You Invest in T-Bills in Nigeria
Treasury Bills are Issued in Fixed Tenors
T-bills are sold through a bi-weekly auction conducted by the CBN. You can purchase a treasury bill at any of the scheduled times when they are auctioned by the Federal Government i.e., 91 days, 182 days and 364 days or through the bank at the secondary market.
Tax Free Investment
Treasury bills are offered at a discounted price and do not attract any monthly interest payments during the tenor of your investment. Upon completing the tenor of your investment, the interest plus the capital will be paid into your bank account.
Risk Free Investment
No need to worry about the security of your investment because T-bills are issued by the Nigerian Government and repayment of your investment plus the interest is guaranteed. Your investment is fully assured of full redemption after maturity.
Interest Rate of Treasury Bills
The interest rate is the bid rate of your T-bill. Your interest depends on the treasury bill you intend to purchase.
Interest earned is not subject to tax. The minimum amount of a treasury bill you can purchase is N50,000; maximum is subject to availability in the market.
Re-investing after Maturity
By the end of the tenor of your T-bill, you have the option to re-invest your bill by buying another available T-bills in the market or receive your original value back.
How to Buy UBA Treasury Bills
Below is how to apply for UBA T-bills;
For New Customers
- Fill out an account opening form and attach your passport photograph and any means of identification issued by the government.
- Fill out a lodgement slip or a cheque.
- Sign your custodial authority.
- Attach a copy of a physical bill signed by you reflecting the issuer’s name.
- A signed investment contract confirmation letter showing the issuer’s name.
For Existing Customers
- Write a letter expressing your interest to invest in treasury bills giving authority for your account to be debited thereafter.
- Sign your custodial authority.
- Attach a copy of a physical bill signed by you and reflecting the issuer’s name.
- A signed investment contract confirmation letter showing the issuer’s name.
- Fill out KYC form.
After initiating your request to invest in T-bills upon meeting the criteria, your account officer would then proceed to verify your documents and forward your request to Treasury.
For further enquiries please contact Treasurysales@ubagroup.com , +234-1-2808852
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