Kathmandu: The Public Debt Management Office has announced the issuance of Citizens Savings Bonds valued at Rs 3 billion and Foreign Employment Savings Bonds amounting to Rs 500 million. This announcement was made today through an official notice.
According to National News Agency Nepal, both types of bonds come with a tenure of five years. The Citizens Savings Bond offers an interest rate of 7%, while the Foreign Employment Savings Bond provides a higher rate of 8.5%. The sales period for these bonds is scheduled from February 27 to March 28, with a possibility of early closure if applications meet the total issuance amount before the deadline.
The interest generated from these bonds will be deposited directly into the purchaser’s bank account every six months, though it will be subject to income tax. The minimum purchase requirement is set at Rs 10,000, with the maximum being the total issue amount, purchasable in multiples of Rs 10,000. Notably, the first applicant will be prioritized for the initial purchase.
There is a noted lack of public awareness concerning the benefits of the Foreign Employment Savings Bond, resulting in reduced demand. For instance, only about 12% of the bonds issued on November 27, 2024, received applications.
The interest rates offered by these bonds surpass those provided by banks and financial institutions for fixed deposits by 2 to 2.5%, making them an attractive option for investors seeking higher returns.