Starting Friday, July 5, the State Treasury again offers residents the opportunity to purchase 6-month savings bonds. The rate on them is now 3.3% per year. According to the State Treasury, residents of Latvia now own savings bonds totaling 292.9 million euros. More than 7,800 people purchased them. The most popular are 12-month savings bonds. According to representatives of the State Treasury, the invested amounts vary greatly – from several hundred to several hundred thousand and even millions of euros. However, in general, since the beginning of the year, the average transaction amount ranges from 10 to 40 thousand euros. Savings bonds are a financial instrument offered by the government. That is, any resident of Latvia, purchasing savings bonds, lends money to the state for a certain period at a fixed interest rate. At the end of the period, the person receives his money back, as well as the interest earned. Although the interest rates offered cannot compete with the potential returns offered by stock markets or bonds issued by businesses, savings bonds offer a high degree of security because the loan is issued to the government. In addition, the interest earned does not have to pay the 20% capital gains tax that is required with other instruments. If in the first half of 2022 savings bonds were issued in the amount of just over 100,000 euros, then by June 2023, residents of Latvia had already purchased them for more than 87 million euros. The growth has continued this year, with €128.4 million worth of savings bonds issued between the start of the year and 18 June. Interest rates on savings bonds correspond to the current market situation and are updated once a week on the website www.krajobligacijas.lv.
