New issue of the Maltese government savings bond 62+
As announced in the last budget and following strong demand for the Malta Government Savings Bond 62+ (MGSB) recorded in the last four issues held each year between 2017 and 2020, the government is launching another 62+ issue. + Savings, market leader. Bind.
This year, for the first time, the bond offer will be offered to all people born in 1959. People born before January 1, 1959 can also apply, but as in previous issues, preference will be given to all eligible people. . applicants who so far have not yet acquired a 62+ MGSB.
The bond offers a relatively good return over the life of the investment for a substantial number of older, hard-working savers. It offers an attractive interest rate higher than that currently offered by the market.
The low interest rate environment continued to negatively affect retirees who experience a substantial decrease in their additional income that came from past savings. This is the main reason for the government’s decision to reissue the Malta 62+ Government Savings Bond for the fifth year in a row.
âThe bond offers a relatively good return over the life of the investment for a substantial number of older, hard-working savers. It offers an attractive interest rate higher than that currently offered by the market â
Although the terms and conditions of the 62+ MGSB issued this year are similar to previous issues of this type of bond, this year’s issue should be interpreted as a separate issue from previous ones held over the past four years.
As such, individuals eligible for previous issues – whether or not they have invested in these bonds – can request up to â¬ 10,000 for this year’s issue. People who have already acquired a 62+ MGSB can claim up to â¬ 10,000 in addition to their existing 62+ MGSB holdings.
The interest rate will be three percent per annum, fixed and guaranteed for five (5) years, which is significantly higher than any other corresponding maturity rate with the same risk profile currently offered by the market. Any eligible individual can invest a minimum amount of â¬ 500 up to a maximum of â¬ 10,000. The investment will be fixed for five years and will not be tradable on the Malta Stock Exchange and cannot be transferred to any other individual.
In the event of inheritance, the principal as well as the interest retained will be paid to the heirs of the deceased bondholder by causa mortis transmission. The bond is intended to be held until maturity, that is to say until 2026. However, if necessary, an individual can cash the entire amount invested before maturity on pain of a penalty equivalent to three months of interest payable at the rate paid by the surety. No penalty will be applied in the event of repayment before maturity of the obligation to the beneficiaries of the deceased bondholder by causa mortis transmission.
Again this year, preference will be given to new eligible applicants composed of (i) people born in 1959, so they would not have been able to apply in previous editions of the 62+ MGSB and (ii) people born before 1959, who were eligible to apply in the last four shows, but for some reason did not participate. Once the obligations have been allocated to these new applicants, the remaining portion available for allocation will be distributed among the existing holders of 62+ Malta Government Savings in accordance with an allocation policy which will be determined by the Accountant General at his discretion.
Interest on this bond will be paid semi-annually in arrears on April 15 and October 15 of each year during the term of the bond (except prior collection). The eligible resident natural person investing in the Malta 62+ Government Savings Bond – 2021 issue can choose to receive net of tax (FWT) or gross interest and report the gross income from the investment in the declaration of income.
Applications for the 62+ Malta Government Bond – Issue 2021 will open at 8:30 a.m. on September 29 and close at 2:30 p.m. on October 4, or earlier at the discretion of the Accountant General. New applicants will need to apply on application form âAâ which can be downloaded from the Treasury website or obtain and file it with one of the approved financial institutions or approved investment service providers.
Existing holders of the 62+ MGSB who wish to subscribe to this obligation must complete the application form “B” (sent by post) and also submit it to one of the authorized financial institutions or authorized investment service providers.
Further information can be obtained from the prospectus, which can be downloaded from the Treasury Department website at www.treasury.gov.mt or by telephone at 2596 7125.
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