Military bonds are just the same as financial donations to the Armed Forces, except that it’s a means of preserving your own capital – expert
Government savings bonds are one of the safest, most profitable, and low-risk types of investments available for citizens among financial instruments to put savings.
Olena Korobkova, Chair of the Board of the Independent Association of the Banks of Ukraine, expressed this opinion, during a briefing at the Media Center Ukraine – Ukrinform.
“Today I would consider government bonds as one of the most profitable and best low-risk investment options to park money. Especially when it comes to war bonds in hryvnia. It is just the same as making financial donations to the Armed Forces of Ukraine, except for preserving your own assets. If one looks at war bonds, the interest rates are currently around 16-18% on an annual basis, and often even slightly higher than the interest rate on bank deposits. However, the advantage is that it’s a nontaxable income, unlike bank deposit account earnings,” she explained.
At the same time, Olena Korobkova noted that compared to bank deposits, at first glance, it may seem that government bonds as a debt-based investment have lock-in periods on prompt access to one’s savings, as attractive bonds can have maturity of 9 months or more. However, she noted that some banks already offer clients such a service as a quick saving bond redemption before their maturity, meaning that they do not have to wait 9 months, but instead, assets are available, for example, in 6 or 5 months when the need arises.
“So, now investing in government bonds gives you the opportunity to early withdrawal, and this gives you certain freedom. And it is worth noting that by these investments, war bonds are used to support our defense capability, that is, we actually borrow on behalf of our defense and victory,” she added.
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