The Federal Government through the Debt Management Office has opened offers for the April 2024 Savings Bond, with rates reaching as high as 18.046% per annum.
According to the announcement made by the DMO, the 2-year FGN Savings Bond will be issued at 17.046% per annum, while the 3-year FGN Savings Bond will be issued at 18.046% per annum.
About FGN Savings Bond
- They are issued by the DMO monthly, and the subscription is N1000 per unit, subject to a minimum subscription of N5,000, and subsequent multiples of N1,000, with a maximum subscription limit of N50,000,000.
- Interest payment for Savings Bonds is made quarterly, with the payment for April 2024 bonds occurring on July 9, October 9, January 9, and April 9.
- FGN Savings Bonds are acknowledged as investment instruments for trustees under the Trustee Investment Act. They also enjoy tax exemption privileges for pension funds in accordance with the stipulations outlined in both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), owing to their classification as government securities.
What you should know
In March 2024, the DMO raised about N2.9 billion worth of Savings Bonds at a rate of 15.097% and 16.097% for the 2-year and 3-year bonds respectively.
In February 2024, N2.43 billion worth of Savings bonds were issued at 12.751% and 13.751% for the 2-year and 3-year bonds respectively.
The decision to issue Savings Bonds at a rate of 18.046% mirrors the strategic direction pursued by both the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN) in 2024, aimed at addressing burgeoning inflation.