Today is the first day that the Malaysian Government Bonds are available for deposit up to RM50,000 and minimum of about RM1,000 for people above the age of 56 or retirees. This is to help them generate some income from their savings. My bank has called me earlier on Monday to inform me of this so that I can go earlier to deposit and join the queue for the early birds to have a better chance of getting this much sought after government bonds that pay 5% interests per annum for 3 years. As I don’t qualify, I have to use my father’s name under a joint account and deposit my money. The date of issuance and sale period is below:

* 18 March 2009 ( BSM 01/2009 – RM1 billion)
( Sale period 18 Feb to 17 March 2009)
* 4 June 2009 ( BSM 02/2009 – RM1 billion)
( Sale period 4 May to 3 June 2009)

Source: Malaysian Government Bonds 2009

The returns are higher than Fixed Deposits which have dropped by 0.2 percentage points. From a previous 3.7% per annum for 12 months deposit, it has dropped to 3.5% per annum of many banks including Public Bank. And for 3 months deposit of 3.2% per annum, it has gone down to a flat 3%. And the government bonds are on a first come first serve basis and the moment it hit RM1 billion throughout Malaysia, it is closed. So, it you have extra cash to put aside for 3 years, hurry to any bank today to deposit the Bon Simpanan Merdeka 2009.

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