Your treasury-bill earnings = the discount between what you pay now and the face value at maturity — set by the auction rate and tenor. Here is how to calculate exactly what you earn.
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The Simple Math
Interest ≈ (annualised rate × amount × days/365). You receive it upfront as a discount and get the full face value back at maturity.
Worked Example
100₦100,000 at a 15% annual rate for 364 days earns about ₦15,000; for 91 days about ₦3,740. Actual amounts depend on the exact auction rate.
What Cuts Into It
- Bank commission/charges.
- Taxes on interest.
- Reinvestment gaps between maturities.
FAQ
Do I earn monthly interest on T-bills?
No — the return is paid upfront as a discount.
How do I know today's rate?
Check the latest CBN auction results or your bank's treasury desk.
Related: 3-Month T-Bill Math and T-Bill Pricing.