Top 5 low risk investments that can get you smiling! series 1

Tim Smith once said “for a small investment today, we could be creating something that our grandchildren will thank us for”. To do today what your grandchildren would thank you for tomorrow, you’ve got to invest! In this investment series we’ll tour 5 low risk investment you can exploit today to make some ROI with little or much. First in our series is the famous treasury bills, straight to the board…Let’s Go!!!

What are treasury bills?
They are government-issued short-term debt instruments issued by the central bank of Nigeria. Also called Tbills, they were first issued in Nigeria in April 1960, and has been a viable means of funding for the government ever since while also offering attractive interest rates to investors. Over the years tbills interest rate has hit as high as eighteen percent per annum (18% p.a) and even higher providing unprecedented ROI’s in the process. Till this date it remains a solid investment option for the enlightened and elites, so…

How can I buy treasury bills?
Treasury bills can be bought from dealers or brokers licensed by the CBN or through banks’ and are sold in two markets namely;
(i)primary market
(ii)secondary market
The primary market is where the investor buys directly from the CBN/Commercial bank through a public auction carried out fortnightly, and is available in 91, 180 and 364 days only, while in the secondary market, an investor buys from an existing holder who is selling his mandate before maturity. The bill remains valid for the remainder of the tenure at a set rate, this can be purchased via brokers and commercial banks only.

When can I purchase treasury bills?
For the primary market, purchase/bids are done once in 2 weeks (fortnightly).
Secondary market can be purchased on any working day subject to availability of mandates in the secondary market.

How much can I invest in Treasury bills?
You can invest as low as N100,000 when purchasing from a bank, and a minimum of N50,000,000 when purchasing directly from CBN.

How do I get paid my interest?
Treasury bills interest are payable upfront (i.e at the beginning of the investment) or reinvestable to be gotten at the end of the investment cycle with the capital, depending on which option the investor prefers.

Some advantages of treasury bills
1.T-bills are low-risk and suitable for safe money keeping for a brief period.
2.T-bills can be a steady source of income (by consistent reinvestments/rollover)
3.T-bills are very liquid and easily converted to cash.
4.They can be used as collateral to get loans or over drafts.
5. Capital is affordable compared to other security instruments.

So if you’ve got some few bucks to spare, rather than leave it in a savings account, T bills is a good way to make some money of it. Take action now!
I look forward to your questions, experiences and recommendations in the comments section. Cheers.