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Faulu Kenya now beats T-Bills for fixed deposits
mawinder
#11 Posted : Tuesday, April 02, 2013 12:11:33 PM
Rank: Elder

Joined: 4/30/2008
Posts: 6,029
Ngong wrote:
He was emotional just come from politics!
Amesema pole!

Ditto.But my friend was given a rate of 13% by Faulu.
Angelica _ann
#12 Posted : Tuesday, April 02, 2013 12:12:33 PM
Rank: Elder

Joined: 12/7/2012
Posts: 11,936
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
youcan'tstopusnow
#13 Posted : Tuesday, April 02, 2013 12:32:51 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Ngong wrote:
He was emotional just come from politics!
Amesema pole!

Laughing out loudly
Siasa iliisha. Mpaka 2017.
GOD BLESS YOUR LIFE
Pesa Nane
#14 Posted : Tuesday, April 02, 2013 7:21:43 PM
Rank: Elder

Joined: 5/25/2012
Posts: 4,105
Location: 08c
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?

d'oh! d'oh! d'oh!


How much and how safe go hand in hand.

If interested in how much only, then join @saitoti and 'earn over 200% guaranteed'. smile smile
Rink. http://wazua.co.ke/forum.aspx?g=posts&t=23375
Pesa Nane plans to be shilingi when he grows up.
Impunity
#15 Posted : Wednesday, April 03, 2013 7:59:12 AM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
mwekez@ji wrote:
@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


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?
d'oh! d'oh! d'oh!
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.

mukiha
#16 Posted : Wednesday, April 03, 2013 8:47:10 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
Impunity wrote:
mwekez@ji wrote:
@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


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?
d'oh! d'oh! d'oh!


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.
holycow
#17 Posted : Wednesday, April 03, 2013 9:09:48 AM
Rank: Veteran

Joined: 11/11/2006
Posts: 972
Location: Home
mwekez@ji
#18 Posted : Wednesday, April 03, 2013 9:46:03 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
Impunity wrote:
mwekez@ji wrote:
@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


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?
d'oh! d'oh! d'oh!


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
mukiha
#19 Posted : Wednesday, April 03, 2013 10:06:15 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
mwekez@ji wrote:
Impunity wrote:
mwekez@ji wrote:
@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


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?
d'oh! d'oh! d'oh!


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.
mwekez@ji
#20 Posted : Wednesday, April 03, 2013 10:33:48 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
mukiha wrote:
mwekez@ji wrote:
Impunity wrote:
mwekez@ji wrote:
@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


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?
d'oh! d'oh! d'oh!


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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