Jan 29, 2009

Bon Simpanan Merdeka 2009 ( BSM2009 ) - Safer, Higher , Good Investment option for senior citizen.


Name of bond

  • Bon Simpanan Merdeka 2009

Date of issuance/ Sales period

  • 18 March 2009 ( Bon Simpanan Merdeka 01/2009 - RM1 billion)
    ( Sale period 18 February to 17 March 2009)
  • 4 June 2009 ( Bon Simpanan Merdeka 02/2009 - RM1 billion)
    ( Sale period 4 May to 3 June 2009)

Allocation of bond

  • First come first serve basis

Total bond size

  • RM2 billion

Bond type

  • Bond to be based on Shariah principles
  • Bond structure similar to coupon bond

Tenure

  • 3 years

Profit to investors

  • 5 per cent per annum

Frequency of profit payment

  • Monthly

Eligibility

  • Malaysian senior citizens who are 56 years and above
  • Malaysian citizens who are retired on medical grounds regardless of age

Minimum holding

  • Minimum holding per investor is RM1,000 at the point of sale and investors may purchase the bond in a multiple of RM100 e.g. RM1,100, RM1,200, etc.

Maximum holding

  • Maximum aggregate holding per investor for the two series is RM50,000 at any one point of time (for duration 2009 to 2012)

Early redemption

  • Bondholders may redeem bond at face value on and before maturity date, but not earlier than the first profit payment for each issue. The profit payments will be apportioned based on the number of days held
  • Minimum redemption amount allowed is RM100
  • The bondholders may redeem bond in multiples of RM100

Form of instrument

  • Scripless

Agent banks

  • Commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Berhad, Bank Simpanan Nasional and Bank Pertanian Malaysia Berhad

Tax exemption

  • Returns on the bond are exempted from tax

Transferability and assignability

  • The bond is non-negotiable, non-transferable and non-assignable


The following information is to help you understand better the features of Bon Simpanan Merdeka 2009 (BSM):
1.Who is eligible for the BSM?
 
  • Malaysian citizens who are 56 years old and above
  • Malaysian citizens who are retired on medical grounds regardless of age.
2.When is the offer period for the BSM?
 
  • The BSM is offered to the public from 18 February to 17 March 2009 and from 4 May to 3 June 2009 for the second series.
3.What is the basis of the allocation of the BSM?
 
  • The allocation of BSM to the applicant is based on "first come first basis" and is subject to such terms and conditions as specified by Bank Negara Malaysia.
  • The payment for the BSM applied on the application date does not imply that the applicant would be successful in the allocation of the BSM.
4.What is the frequency of issuance for the BSM?
 
  • There will be two issuances for the BSM; i.e. 18 March 2009 and 4 June 2009.
5.What is the tenure of the BSM?
 
  • The BSM will have a maturity of three years.
6.What will be the minimum and maximum amount of subscription?
 
  • The minimum amount of holding per BSM holder is RM1,000 per application and in multiples of RM100, e.g. RM1,100, RM1,200, etc.
  • The maximum aggregate holding per BSM holder for the two series is RM50,000 at any one point of time for the duration of the BSM, i.e. 2009 to 2012.
7.Why is the maximum holding per BSM holder fixed at RM50,000 instead of RM100,000 as in the Bon Simpanan Merdeka 2004 and 2005?
 
  • The maximum holding of RM50,000 per BSM holder is to allow a wider distribution of the BSM, so that more citizens can benefit from it.
8.Would profit be paid on applicants' investments from the date of application to the date of issuance of BSM?
 
  • The agent banks will pay the BSM holder the prevailing savings account rate for the period between the date of application and the date of issuance.
  • For example, if you apply for the BSM on 18 February 2009, you will receive the savings account rate from 18 February to 17 March 2009.
9.What is the profit for the BSM?
 
  • The profit for the BSM is 5% p.a. This means the profit is approximately 0.42% (5% divided by 12), of the holding amount at the end of each month.
10.How often will profit be paid to the BSM holder?
 
  • Profit will be paid on a monthly basis.
  • The profit from the BSM will be credited directly into the BSM holders' deposit accounts maintained with agent banks.
11.Will the returns on BSM be subject to tax?
 
  • No, returns on the BSM are exempted from tax.
12.Can the BSM holder exercise early and partial redemption of the BSM?
 
  • The BSM can be redeemed early at the nominal value and including the profit amount due before the maturity date but after the first profit payment.
  • The profit payment will be apportioned based on the number of days the BSM is held.
  • Minimum redemption amount allowed is RM100.
  • BSM holder may redeem his BSM in multiples of RM100.
13.When and how can BSM holder redeem the BSM at maturity?
 
  • Redemption proceeds (including the last profit payment) will automatically be paid by crediting directly into the BSM holder's account maintained with his agent bank at maturity.
14.Is the BSM transferable?
 
  • The BSM is non-negotiable, non-transferable and non-assignable.
  • In the event of the demise of a BSM holder, the BSM held by the deceased BSM holder shall form part of his estate.
15.What documentation is required when applying for subscription of the BSM?
 
  • An original or a certified photocopy of the Identity Card (I.C.).
  • For those who retired on medical grounds, original and / or certified photocopies of supporting documents from the relevant parties.
16.Where can the BSM be subscribed?
 
  • The BSM can be subscribed at all commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Berhad, Bank Simpanan Nasional and Bank Pertanian Malaysia Berhad.

For further information, please contact Bank Negara Malaysia TELELINK
at 1300 88 5465

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