A government savings bond called '62+ Government Savings Bong' available specifically for pensioners was launched this morning.
Speaking to the press at a news conference at the Ministry for Finance, Finance Minister Edward Scicluna explained that in recent years, the interest rates on Fixed Bank Accounts has decreased 'substantially' and this lead to a 'sharp decline' in the additional income for pensioners.
The bond will be issued on 4 September and those eligible to apply this year are those born in 1955 or prior.
The initiative, which the Government announced in this year's Budget, "will have a better interest rate in order to ultimately enhance their income," Farrugia explained. He added that "Maltese and Gozitans are in a 'dangerous' situation, where interest has fallen to a record low."
The bonds have a five-year maturity at an interest of three per cent per annum, which, like all bonds, are payable twice a year.
Those investing in this scheme can invest a maximum of €10,000 with a minimum of five hundred euro, and can only be bought by one individual. Farrugia emphasized that couples cannot apply for a bond in both of their names, however can each invest in a bond separately, at a maximum of €20,000. The bond cannot be bought or held on behalf of others and cannot be given as a 'pledge' (an exchange or a refund). It also cannot be bought or sold by third parties or intermediaries.
Farrugia said that the bond cannot be redeemed prior to the date of maturity, apart from any documented evidence of serious medical reasons, in the case of which, the investor will need to pay ninety days interest.
In order for this 'bond' to be issued with an attractive interest rate for pensioners, the Maltese Treasury law regarding bills has been amended.
from The Malta Independent http://ift.tt/2ufkKab
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