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Fed Govt offers 6.5% yearly interest on April savings bonds



Fed Govt offers 6.5% yearly interest on April savings bonds – The Federal Government at the weekend closed application lists for its monthly Federal Government of Nigeria Savings Bond (FGNSB).

The settlement date for the issuance, which becomes the effective calculation date this Wednesday.

The government offered a two-Year FGN Savings Bond due April 14, 2023 at a coupon of 5.522 per cent yearly. It also simultaneously offered a three-Year FGN Savings Bond due April 14, 2024 at coupon of 6.522 per cent yearly.

Application list for this months’ bonds, 46th tranche of the FGNSB, opened on Tuesday, April 6, 2021 and closed on Friday, April 9, 2021.

Usually, the minimum subscription to the bonds, offered at N1,000 per unit, is N5,000 or five units and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

The coupon payment dates for the bonds, which pay interest rate quarterly, July 14, October 14, January 14, April 14.

The FGNSB was introduced in 2017 as a mass instrument for nationwide mobilisation of savings and investments. Minimum subscription to the FGNSB is usually N5,000 while the bond pays coupon or interest rate on a quarterly basis.

GTI Securities Limited, one of the authorised distribution agents for the FGNSB, noted that the savings bonds help to deepen national savings culture while providing opportunity to all Nigerians irrespective of income level to contribute to and benefit from national development.

Read also: Wema Bank plans 20 bln naira bond issue this month

According to the stockbroking firm, FGNSB enables Nigerians opportunity to participate in and benefit from the favourable returns available in the capital market.

GTI Securities noted that the savings bonds are acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity.

The bonds are usually listed on the Nigeria Stock Exchange (NSE) for trading, thus providing liquidity for investors who want to exit before maturity.

Savings bonds are good for savings towards retirement, marriage, school fees and house projects among other targets while assuring on its safety as the bonds are backed by the full faith and credit of the Federal Government.

Samson Gabriel a graduate of mass communication from Auchi Polytechnic, he is a passionate writer with experience in radio scrip writing. He brings his experience from the broadcast media into play here as he continues to enjoy his passion as a journalist. He can be contacted via whats-app on: +234701105670

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