4 Reasons You Should Invest In FG’s Savings Bond
As you may have read on Bounce News, the federal government is borrowing (inside and outside the country) to finance the 2017 budget.
They have borrowed from Europeans, companies in Nigeria and even from Nigerians living outside the country.
And now, they also want to borrow from you!
It is a great opportunity to invest no matter how small the amount you have.
Below are four reasons you should buy into the savings bond.
#1. It Is Cheap: The federal government’s savings bond is a cheap way to buy bonds. Unlike investing in many other types of bonds, one of the advantages of this bond is that you can buy in with 5,000 Naira.
Buy you must decide how long to leave the money in the government’s hands. In this case, you may leave it for between one to three years.
#2. It Is Not Risky: Yes, that’s correct. It is not lending money to your friend or colleague. You are lending to government and the chances of default on interest are low. It does not matter which administration borrowed the money, whether it is APC or PDP; government is government.
#3. Inflation May Not Affect Your Investment: If you are afraid that the value of your money would have depreciated by the time the bond matures, bury your fears.
This is because the government factors in inflation while paying your interest. So, if the inflation rate is 18% for instance, chances are, government may pay an interest higher than 18%. Although you may not count on it because of unreliability of our inflation figures, but you can rest assured that whatever interest they pay will be higher than the 5% from your bank.
#4. You Know Exactly How Much You’ll Earn: This is true. Once the government announces the interest rate, you can do the math on the amount you want to invest. Its the same amount you will receive from your bond over the term you have chosen.