The Finance Ministry plans to offer special savings bonds worth 50 billion baht to the public to give taxpayers more investment alternatives to earn higher income as low interest rates and economic uncertainty prevail.
The savings bonds, part of the government's 1-trillion-baht borrowing plan to alleviate the damage from the pandemic, will be divided into five- and 10-year maturities, said Finance Minister Uttama Savanayana.
The five-year bonds carry an average coupon rate of 2.4%, effectively 1.9% after tax, while the longer-dated bonds have an average rate of 3%, netting 2.55% after tax.
Under the royal decree for 1 trillion baht in borrowing, 550 billion baht is for financial aid for affected informal workers and farmers, 45 billion baht is for healthcare-related expenditure and 400 billion baht is for economic and social rehabilitation through projects aimed at creating jobs, strengthening communities and building infrastructure.
The borrowing plan is part of the government's third phase of relief measures for the pandemic.
Patricia Mongkhonvanit, director-general of the Public Debt Management Office (PDMO), said the special savings bonds will be sold to Thais aged 60 or above residing domestically during May 14-20, with a minimum subscription of 1,000 baht and a maximum of 2 million baht each and per bank.
The leftover bonds will be offered to those who have either Thai nationality or were living in Thailand between May 21 and 27, with a minimum subscription of 1,000 baht and a maximum of 2 million baht each and per bank.
These sub-segments and foundations are eligible to subscribe to the savings bonds without limit from May 28 to June 10.
Interested investors can subscribe to the savings bonds through the PDMO's Bond Direct app and the ATMs, counters, and the internet and mobile banking apps of four banks: Siam Commercial Bank, Kasikornbank, Bangkok Bank and Krungthai Bank.
Mrs Patricia said the special savings bonds yield higher returns than the five- and 10-year bonds available in the market, by 150 and 180 basis points respectively.