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Faulu Kenya now beats T-Bills for fixed deposits
Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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For Kes. 1,000,000 deposited for 12 months Fualu gives interest of Kes.102,000 (12%) CBK's 364-day T-Bill gives Kes. 95,395 in interest. A Bank fixed deposit is now beating CBK T-bills down, I haven't seen this for a very loooong time. How safe is this Faulu thing? Why are guys still oversubscribing T-Bills at the rate of over 300% when we have "free" money at Faulu Kenya?  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 3/15/2010 Posts: 391 Location: nairobie
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the big question is how viable is this faulu rate or is it a way of raising capital
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Rank: Elder Joined: 4/30/2008 Posts: 6,029
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Impunity wrote:For Kes. 1,000,000 deposited for 12 months Fualu gives interest of Kes.102,000 (12%) CBK's 364-day T-Bill gives Kes. 95,395 in interest. A Bank fixed deposit is now beating CBK T-bills down, I haven't seen this for a very loooong time. How safe is this Faulu thing? Why are guys still oversubscribing T-Bills at the rate of over 300% when we have "free" money at Faulu Kenya? Faulu rate is 13% net.No hidden charges unlike unit trusts or T bills.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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mawinder wrote:Impunity wrote:For Kes. 1,000,000 deposited for 12 months Fualu gives interest of Kes.102,000 (12%) CBK's 364-day T-Bill gives Kes. 95,395 in interest. A Bank fixed deposit is now beating CBK T-bills down, I haven't seen this for a very loooong time. How safe is this Faulu thing? Why are guys still oversubscribing T-Bills at the rate of over 300% when we have "free" money at Faulu Kenya? Faulu rate is 13% net.No hidden charges unlike unit trusts or T bills. The ad I saw said 12% What hidden charges are there on T-Bills? Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Here is the ad @mawinder. &i have never seen hidden charges in T Bills. Wacha kudanganya wazuans 
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Rank: Elder Joined: 7/21/2010 Posts: 6,182 Location: nairobi
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Its just a question of how secure you feel between faulu and cbk "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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@Impunity, hesabu zakukanganya. 364 day Tbill is attracting an interest rate of 12.676% which is higher than the 12% being given by Faulu 364 T Bill rate link >>> http://www.centralbank.go.ke/im...ts/1978-182-1895-364.pdf
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Interestingly, they don't have their financial reports in the website.... makes you think, doesn't it? Also, earlier this morning, I thought I saw two ads in that website: one saying that fixed deposits are paying 13% and another one saying 12%. It is also not clear whether what they are advertising is after or before withholding tax.... now talk about "hidden" charges! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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mukiha wrote:mawinder wrote:Impunity wrote:For Kes. 1,000,000 deposited for 12 months Fualu gives interest of Kes.102,000 (12%) CBK's 364-day T-Bill gives Kes. 95,395 in interest. A Bank fixed deposit is now beating CBK T-bills down, I haven't seen this for a very loooong time. How safe is this Faulu thing? Why are guys still oversubscribing T-Bills at the rate of over 300% when we have "free" money at Faulu Kenya? Faulu rate is 13% net.No hidden charges unlike unit trusts or T bills. The ad I saw said 12% What hidden charges are there on T-Bills? Hidden charges kwa T-Bills?! Clearly someone doesn't know what they're talking about  $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 11/17/2012 Posts: 1,461 Location: Ngong Forest
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He was emotional just come from politics!
Amesema pole!
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Rank: Elder Joined: 4/30/2008 Posts: 6,029
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Ngong wrote:He was emotional just come from politics!
Amesema pole! Ditto.But my friend was given a rate of 13% by Faulu.
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Ngong wrote:He was emotional just come from politics!
Amesema pole! he is missing throwing dirt at Mc... who has since disappeared. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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Ngong wrote:He was emotional just come from politics!
Amesema pole!  Siasa iliisha. Mpaka 2017. GOD BLESS YOUR LIFE
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Impunity wrote:For Kes. 1,000,000 deposited for 12 months Fualu gives interest of Kes.102,000 (12%) CBK's 364-day T-Bill gives Kes. 95,395 in interest. A Bank fixed deposit is now beating CBK T-bills down, I haven't seen this for a very loooong time. How safe is this Faulu thing? Why are guys still oversubscribing T-Bills at the rate of over 300% when we have "free" money at Faulu Kenya? How much and how safe go hand in hand. If interested in how much only, then join @saitoti and 'earn over 200% guaranteed'.  Rink. http://wazua.co.ke/forum.aspx?g=posts&t=23375Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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T-Bill computation is NOT done in the simple layman way you are imagining...the %age for T-Bill may e higher than that of Fixed bank depos but in absolute terms the results from computation is not the same. How many strong D's did you score in maths in your entire lower classes? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Impunity wrote:T-Bill computation is NOT done in the simple layman way you are imagining...the %age for T-Bill may e higher than that of Fixed bank depos but in absolute terms the results from computation is not the same. How many strong D's did you score in maths in your entire lower classes? You don't need to know the math; CBK announces the effective rate and then does all the workings for you and tells you how much to pay. As an investor - not a mathematician - all you need to know is the interest rate in order to make your decision! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Veteran Joined: 11/11/2006 Posts: 971 Location: Home
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Impunity wrote:T-Bill computation is NOT done in the simple layman way you are imagining...the %age for T-Bill may e higher than that of Fixed bank depos but in absolute terms the results from computation is not the same. How many strong D's did you score in maths in your entire lower classes? SMH ... that choice of words .... na wewe ni chief #Shame .... you should know that interest on TBill is paid upfront unlike in Fixed Deposits. Reinvest the interest and watch the returns shoot way up past the already juicy levels .... bottom line: The Tbill return is higher than Fixed Deposit return. Thats why Faulu (and other banks) will take your money, put it in Tbills and make profit out you .... tafakari hayo
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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mwekez@ji wrote:Impunity wrote:T-Bill computation is NOT done in the simple layman way you are imagining...the %age for T-Bill may e higher than that of Fixed bank depos but in absolute terms the results from computation is not the same. How many strong D's did you score in maths in your entire lower classes? SMH ... that choice of words .... na wewe ni chief #Shame .... you should know that interest on TBill is paid upfront unlike in Fixed Deposits. Reinvest the interest and watch the returns shoot way up past the already juicy levels .... bottom line: The Tbill return is higher than Fixed Deposit return. Thats why Faulu (and other banks) will take your money, put it in Tbills and make profit out you .... tafakari hayo No; No; No! This is a common misconception. T-Bill interest is paid ON MATURITY. The fact that you pay, say 97,000 for a 100,000 Bill doesn't mean that you are getting the 3,000 interest up-front! And when you roll-over the bill, the payment you get is not the interest but a refund...same as the change you get in a shop....even though it is numerically equal to the interest! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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mukiha wrote:mwekez@ji wrote:Impunity wrote:T-Bill computation is NOT done in the simple layman way you are imagining...the %age for T-Bill may e higher than that of Fixed bank depos but in absolute terms the results from computation is not the same. How many strong D's did you score in maths in your entire lower classes? SMH ... that choice of words .... na wewe ni chief #Shame .... you should know that interest on TBill is paid upfront unlike in Fixed Deposits. Reinvest the interest and watch the returns shoot way up past the already juicy levels .... bottom line: The Tbill return is higher than Fixed Deposit return. Thats why Faulu (and other banks) will take your money, put it in Tbills and make profit out you .... tafakari hayo No; No; No! This is a common misconception. T-Bill interest is paid ON MATURITY. The fact that you pay, say 97,000 for a 100,000 Bill doesn't mean that you are getting the 3,000 interest up-front! And when you roll-over the bill, the payment you get is not the interest but a refund...same as the change you get in a shop....even though it is numerically equal to the interest! My simple language was intended for good clarity. … Otherwise I can say that the discount (which in layman understanding is the “interest”) on the TBill is awarded upfront. Read more here >>> http://www.centralbank.go.ke/in...ategorised/222-read-more
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