This is a good news to conservative investors who only believe in FD. However, it is only eligible for retirees. It is a better alternative to FD as the return is 5% per annum. Current FD rate is around 3.7% per annum. The following are some facts extracted from BNM website about this fund:
Quick Facts
BSM 2008
Sale Period: 3 to 31 March 2008
Issue Date: 1 April 2008
Profit margin: 5% p.a.
Bank Negara Malaysia will issue Bon Simpanan Merdeka 2008 amounting to RM2 billion on 1 April 2008. The bond, which will be scripless and based on Syariah principles, is an additional savings instrument for senior citizens who are 55 years and above and not employed on a full-time basis.
Those wishing to subscribe may apply for the bond during the sales period, commencing from 3 to 31 March 2008. The bond, which has a 3-year tenure, offers a return of 5% p.a. and provides flexibility for early redemption before the maturity date.
The minimum investment in the bond is RM1,000 with a maximum of RM50,000 per investor.
Bon Simpanan Merdeka 2008 can be subscribed at all commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Berhad, Bank Simpanan Nasional and Bank Pertanian Malaysia.
The allocation of the bond is based on first come first serve basis. Successful applicants will be notified by their agent banks. Profit payments will be made through the bondholders' accounts with their agent banks.
For further information please refer to www.bnm.gov.my/bonmerdekaLabels: News