Bank Negara Malaysia will issue Bon Simpanan Merdeka 2008 amounting to RM2 billion on 1 April 2008. Is RM2billion a lot? This investment might be as good as ASW2020. I remember many times that the ASW2020 are sold off in just 1 or 2 hours. So better be fast/early if you want to buy this.
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.
There is nothing wrong to be a Syariah approved intruments. For the non Islamic investors, don't be so rigid about this. Basically Syariah investing are more stable. Another objective for this product is that it allows the Muslim investors to participate. Frankly, wouldn't investing in ASN better than this Merdeka Bond? Just the question to ponder since I never invest in ASN myself.
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. This product will be as good as saving account! Just the flexibility to withdraw anytime and still be given the pro-rated interest and 5% interest per annum.
The minimum investment in the bond is RM1,000 with a maximum of RM50,000 per investor. Its good to have a capping of maximum RM50,000 of investment. Don't be suprise to see people coming in with RM1,000,000 cheque. Thus this provide opportunities for everyone to invest. A minimum of RM1,000 is fair enough. Its the minimum for any other unit trust funds.
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.
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????? Why successful applicant? Just a quick guess, maybe they will proceed with some checking to ensure that the applicant meets the criteria to investment (eg golden citizens whom are not on full time employment). Profit payments will be made through the bondholders' accounts with their agent banks. That means the interest cannot be reinvested.
The profit for BSM 2008 is 5% p.a. This means the profit is approximately 1.25% (5% divided by 4), of the investment amount at the end of each quarter. This is another advantage feature of this product. Normal Fixed Deposits only gives you the return at the end of the tenure. Assuming the dividend is reinvested at the same rate, the effective rate (due to the profit paid quarterly instead of yearly) will be 5.1%. Another thing is, the return are not taxable :)
The BSM 2008 is non-negotiable, non-transferable and non-assignable. BSM 2008 can be redeemed at face value on and before the maturity date but after the first profit payment. The profit payment will be apportioned based on the number of days the bond is held. Minimum redemption amount allowed is RM100. Bondholders may redeem their bond holdings in multiples of RM100. This provides liquidity to the golden citizen. Again well done. Its a good product for golden citizens.
