or: How I earn little, but safe.
Some people ask me if you can 'earn the Treasury (and the dear old !!!!) and I can BOT say that advertised yields, are very well taken and analyzed.
To date, more 'or less, a 3-month Treasury bills, makes about 3.93% gross. A 6-month BOT around 4.01% gross and Bot 12 months, about 4.11% gross. (Obviously referring to all annual return!)
When Gross says, is meant to be imposed on the substitute tax of 12.50% and the bank fees that vary depending on the duration of the license.
On average, a 12-month BOT will talks of 0.30%.
But we see with some examples in a nutshell what you can 'get from a bot.
Calculating the return on a BOT
We have to buy our Treasury bills in the ASTA 11 September 2007, having taken care to make your reservation at least 2 days in advance for security.
the same day we get from the website of the Ministry of the Treasury, the result of the auction we can find by clicking here.
We note already 'the simple gross return equal to 4.042%.
For the record, look at what made it past the BOT:
* 2006 * 2005 3.396% 2.641%
* 2004 2,160%
* 2003 2,301%
* 2002 2,756%
* 2001 3,203%
* 2000 4,639%
* 1999 3,69%
* 1998 3,16%
* 1997 5,29%
* 1996 6,68%
* 1995 10,20%
* 1994 10,31%
* 1993 8,64%
* 1992 15,14%
* 1991 12,55%
* 1990 12,86%
* 1989 13,35%
* 1988 11,54%
* 1987 11,89%
* 1986 10,01%
* 1985 13,18%
* 1984 14,74%
* 1983 17,74%
* 1982 18,55%
* 1981 19,98%
* 1980 16.14%
simple gross annual yield of 12 month BOTs. Figures from the auction of December each year. The 2006 figure includes an auction of 15 November 2006
Now back to us.
To determine what actually makes us in a nutshell our BOT, we must first remove
everything 'and that' spending or tax.
spending, are the fees that apply to the bank and have a maximum duration of the applicable law according to Title:
The recent rules on banking transparency have identified the maximum fees that banks may charge their customers, namely:
* To residual maturity securities less than or equal to 80 days: +0.05%
* For securities residual maturity greater than or equal to 80 and mininore 170 days: +0.10%
* For securities residual maturity greater than or equal to 170 and mininore 330 days: +0.20%
* For securities residual maturity greater than 330: +0.30%
then be removed the substitute tax (currently 12.50%) applied to the difference between the redemption price ( 100) and the weighted average auction price (though the price for tax purposes). We see the
calculated
Weighted Average Price: 96.042
100 to 96.042 = 3.958
3.958 x 0.49475 = 12.50% rate tax
The final price at which the purchase and BOT 'then given by:
Weighted Average Price: 96.042 +
maximum commissions: 0, 30 +
rate tax: 0.494
-------------- ----------------------------------
Final Price 96.836
Now to be clear about the annual percentage yield simple we have:
(100 - final price) x 365 x 100
-----------------------------------
final price x days duration
in our case:
(100-96.836) x 365
---------------------------- - x 100 = 3.24% net return per annum simple.
96.836 x 367
Considering then to invest the minimum investment in BOT or EURO 1000, after 367 days we would get a net interest income advanced 32.4 Euro (which means Sept. 14, the settlement date, we have drawn on the account and € 967.6 September 15, 2008 , expiration date, we have credited our 1000 €.
But it is not 'over here.
To be able to buy Treasury bills at a bank, you must have a securities portfolio that might have other costs.
Let's see:
many banks apply RIGHTS custody, charged every six months. For those who have rights of custody BOT ONLY applicable half yearly maximum of 10 €.
To these must be added, for those who always BOT has only (no action or otherwise) other annual STAMPS € 10.33 for the securities portfolio that contains dematerialized securities.
E 'Decree of the Ministry of the Treasury in February 2004 to establish these maximum costs.
So assuming that your bank to apply the maximum cost, we will have to add an additional 10 € + 10 € 10.33 € rights and stamp duty, equivalent to 30, 33 that would reduce costs by € 2.07 to € our annual gain in 1000, bringing it to € invested 0.207% net.
course increases the investment costs affect percentage to a lesser extent.
So for those who have money to invest without risk, amounts from 1000 to 10000 €, Council to assess the alternative of some liquidity fund ', usually at no cost (liquidity Soul', Ras Liquidity 'is the best since the beginning of this year) or
passing up a deposit account such as
Account orange for the whole year (12 months) offers a rate of 4.5% gross, without costs. After 12 months return to base rate. Attention
only, for the time and the withholding tax 'of 27% and brings the net yield to 3.28%. So € 10,000 after 12 months become about 10,328. (Not bad for liquidity ').
There is a promotion until October 31, if you open the account and bring a friend, the rate for 12 months is 5% . Not There are no charges and did not even pay for stamps. CLICK HERE for details .
Another alternative to be reckoned with and 'supply of IWPower IWBank, that you can' turn on free for those who are 'already' account holder. The current account offers 4% gross basis, at no cost and with many benefits (cash, credit card ....).
IW Power can invest at least € 1000 with the following dates, sources.
IWPower 30 - 3.24% net rate - about 1 month *
IWPower 90 - net rate 3.30% - 3 months *
IWPower 180 - net rate 3.35% - 6 months *
rates are very respectable considering that there is' no additional charges.
For information click here.
BOT Returning to the example of efficiency made over concerns BOT AUCTION booked.
For those who buy Treasury bills market, things change depending on length of the license at the time of detention. If you sell the security prior to maturity, you can 'pay even the capital gain on the difference of the purchase price and sales.
Technorati Tags: account IWBank , account orange , cash funds' , performance of a BOT , invest in safe
Some people ask me if you can 'earn the Treasury (and the dear old !!!!) and I can BOT say that advertised yields, are very well taken and analyzed.
To date, more 'or less, a 3-month Treasury bills, makes about 3.93% gross. A 6-month BOT around 4.01% gross and Bot 12 months, about 4.11% gross. (Obviously referring to all annual return!)
When Gross says, is meant to be imposed on the substitute tax of 12.50% and the bank fees that vary depending on the duration of the license.
On average, a 12-month BOT will talks of 0.30%.
But we see with some examples in a nutshell what you can 'get from a bot.
Calculating the return on a BOT
We have to buy our Treasury bills in the ASTA 11 September 2007, having taken care to make your reservation at least 2 days in advance for security.
the same day we get from the website of the Ministry of the Treasury, the result of the auction we can find by clicking here.
Auction Results: BOT Annual
Date: September 11, 2007
Code Title / Tranche IT0004274038/01
Deadline 15/09/2008
time in 367 days
Date Auction Date 09/11/2007 Regulation 14/09/2007
Offer Amount (*) 7000.000
Amount Request (*) 8907.302
Assigned Amount (*) Give
7000.000. Comp Gross (1) 4.041
Give. Semp. Gross (1) 4.042
Weighted Average Price 96.042 96.051
Maximum Price Minimum Price 96.034 95.114 Exclusion
Price Price ref. Tax Allocation
% Price 96.042 0.448 Min.
Date Amount Amount Securities issued to the amount due 9/14/2007 7000.000
BOT 12 months to 14/9/2007 7000.000
(*) in millions € uro
(1) 360 days annually.
We note already 'the simple gross return equal to 4.042%.
For the record, look at what made it past the BOT:
* 2006 * 2005 3.396% 2.641%
* 2004 2,160%
* 2003 2,301%
* 2002 2,756%
* 2001 3,203%
* 2000 4,639%
* 1999 3,69%
* 1998 3,16%
* 1997 5,29%
* 1996 6,68%
* 1995 10,20%
* 1994 10,31%
* 1993 8,64%
* 1992 15,14%
* 1991 12,55%
* 1990 12,86%
* 1989 13,35%
* 1988 11,54%
* 1987 11,89%
* 1986 10,01%
* 1985 13,18%
* 1984 14,74%
* 1983 17,74%
* 1982 18,55%
* 1981 19,98%
* 1980 16.14%
simple gross annual yield of 12 month BOTs. Figures from the auction of December each year. The 2006 figure includes an auction of 15 November 2006
Now back to us.
To determine what actually makes us in a nutshell our BOT, we must first remove
everything 'and that' spending or tax.
spending, are the fees that apply to the bank and have a maximum duration of the applicable law according to Title:
The recent rules on banking transparency have identified the maximum fees that banks may charge their customers, namely:
* To residual maturity securities less than or equal to 80 days: +0.05%
* For securities residual maturity greater than or equal to 80 and mininore 170 days: +0.10%
* For securities residual maturity greater than or equal to 170 and mininore 330 days: +0.20%
* For securities residual maturity greater than 330: +0.30%
then be removed the substitute tax (currently 12.50%) applied to the difference between the redemption price ( 100) and the weighted average auction price (though the price for tax purposes). We see the
calculated
Weighted Average Price: 96.042
100 to 96.042 = 3.958
3.958 x 0.49475 = 12.50% rate tax
The final price at which the purchase and BOT 'then given by:
Weighted Average Price: 96.042 +
maximum commissions: 0, 30 +
rate tax: 0.494
-------------- ----------------------------------
Final Price 96.836
Now to be clear about the annual percentage yield simple we have:
(100 - final price) x 365 x 100
-----------------------------------
final price x days duration
in our case:
(100-96.836) x 365
---------------------------- - x 100 = 3.24% net return per annum simple.
96.836 x 367
Considering then to invest the minimum investment in BOT or EURO 1000, after 367 days we would get a net interest income advanced 32.4 Euro (which means Sept. 14, the settlement date, we have drawn on the account and € 967.6 September 15, 2008 , expiration date, we have credited our 1000 €.
But it is not 'over here.
To be able to buy Treasury bills at a bank, you must have a securities portfolio that might have other costs.
Let's see:
many banks apply RIGHTS custody, charged every six months. For those who have rights of custody BOT ONLY applicable half yearly maximum of 10 €.
To these must be added, for those who always BOT has only (no action or otherwise) other annual STAMPS € 10.33 for the securities portfolio that contains dematerialized securities.
E 'Decree of the Ministry of the Treasury in February 2004 to establish these maximum costs.
So assuming that your bank to apply the maximum cost, we will have to add an additional 10 € + 10 € 10.33 € rights and stamp duty, equivalent to 30, 33 that would reduce costs by € 2.07 to € our annual gain in 1000, bringing it to € invested 0.207% net.
course increases the investment costs affect percentage to a lesser extent.
So for those who have money to invest without risk, amounts from 1000 to 10000 €, Council to assess the alternative of some liquidity fund ', usually at no cost (liquidity Soul', Ras Liquidity 'is the best since the beginning of this year) or
passing up a deposit account such as
Account orange for the whole year (12 months) offers a rate of 4.5% gross, without costs. After 12 months return to base rate. Attention
only, for the time and the withholding tax 'of 27% and brings the net yield to 3.28%. So € 10,000 after 12 months become about 10,328. (Not bad for liquidity ').
There is a promotion until October 31, if you open the account and bring a friend, the rate for 12 months is 5% . Not There are no charges and did not even pay for stamps. CLICK HERE for details .
Another alternative to be reckoned with and 'supply of IWPower IWBank, that you can' turn on free for those who are 'already' account holder. The current account offers 4% gross basis, at no cost and with many benefits (cash, credit card ....).
IW Power can invest at least € 1000 with the following dates, sources.
IWPower 30 - 3.24% net rate - about 1 month *
IWPower 90 - net rate 3.30% - 3 months *
IWPower 180 - net rate 3.35% - 6 months *
rates are very respectable considering that there is' no additional charges.
For information click here.
BOT Returning to the example of efficiency made over concerns BOT AUCTION booked.
For those who buy Treasury bills market, things change depending on length of the license at the time of detention. If you sell the security prior to maturity, you can 'pay even the capital gain on the difference of the purchase price and sales.
Technorati Tags: account IWBank , account orange , cash funds' , performance of a BOT , invest in safe
