FGN Savings bond

Do you know that The Federal Government of Nigeria (FGN) Savings Bond for October is open?

 

What is FGN Savings Bond?

 

“The Federal Government of Nigeria (FGN) Savings Bond is a bond being issued by the Debt Management Office on behalf of the FGN. The bond issuance is part of the Federal Government’s Programme to encourage small savers and it helps them earn more income (interest) when compared to their savings accounts with banks.”

-Afrinvest Securities

 

According to The Nigerian Stock Exchange (NSE), the bonds help enhance the savings culture among Nigerians while providing all citizens irrespective of income level, an opportunity to contribute to National Development; as well as the comparatively​ favorable returns available in the capital market.

 

Features of FGN Savings Bond

1.    The Minimum subscription of the bond is N5,000 and the maximum subscription of the bond is N50 million.

2.    Fixed interest (coupon) will be paid quarterly.

3.    It is issued in 2 – 3 years tenor

2-year FGN Savings Bond:

Interest rate of 2.453% with Maturity date as 14th October 2022.

3-year FGN Savings Bond:

Interest rate of 3.45% with Maturity date as 14th October 2023

 

Some of the Benefits of FGN Savings Bonds includes:

1.    Interest income from the Savings Bond are non-taxable (tax-free)

2.    The bondholder enjoys interest every quarter

3.    The savings bond is considered liquid (can be converted into cash easily) as it would be tradeable on the Nigerian Stock Exchange.

4.    The FGN Savings Bond Certificate can be used as collateral for loans.

 

How to Invest: Visit any approved Financial/ Investment firm

 

Deadline: 9th October 2020

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