Minister for Finance Edward Scicluna gave a detailed briefing regarding the Savings Bond for individuals born during 1955 or before.
Aware of the sharp decline in additional income to pensioners, because of the reduction in interest rates on fixed deposit accounts offered by commercial banks in recent years, Minister Scicluna said that, “for this reason the Government had announced a measure by which it will issue a Bond, with a much better interest rate than those on the market, to enhance pensioners’ income.”
The ‘62+ Government Savings Bond’ will have an advantageous interest rate of 3 percent, which rate is relatively higher than the rates commercial banks are offering at present.
The interest will be paid every six months and each investor will be able to invest up to ten thousand Euros and a minimum of five hundred Euros.
The investment will be kept for five years and cannot be “traded” on the Malta Stock Exchange.
In order for this type of Bond to be issued with attractive rates specially addressed to the needs of pensioners, there was a change in the Treasury of Malta Law Bills, which law passed by Parliament a few days ago.
Applications for this Bond will start being received as from the 4th of September.
“I am happy that the Government now is able to implement another measure which is aimed to enhance pensioners’ income,” concluded Minister Scicluna.