Get to Know BOSS+

Author(s): Central Bank Of Barbados

Created 12 Sep, 2022
Tags BOSS+
Categories General Press Release
Views: 772
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What is BOSS+?

BOSS+ is a five-year security that the Government of Barbados is issuing.

BOSS+ bonds are sold at par (face value) and pay 4.5 percent interest per annum. That interest is paid in two instalments and is not subject to withholding tax.

While the maturity period for BOSS+ bonds is five years, they can be redeemed, without penalty, after 24 months.

How does BOSS+ work?

You buy BOSS+ bonds at face value – the minimum investment is $500 and thereafter you can increase your investment in increments of $100 – and receive 4.5 percent interest per annum over the five-year maturity period. That interest is paid semi-annually, and is not subject to withholding tax. At the end of the five years, you get back your initial investment.

If you don’t want to hold your BOSS+ bonds for the full five years, you can redeem them, without penalty, after 24 months. You can also trade them on the secondary market through a broker, e.g.  Royal Fidelity, NCB, SigniaGlobe. Another option is to sell your BOSS+ bonds to someone else.

Why should I buy BOSS+ bonds?

First, because BOSS+ bonds offer attractive returns. They pay 4.5 percent interest per annum, a rate that is significantly higher than you get on savings accounts at financial institutions or for other comparable investments, and that interest is not subject to withholding tax. Interest is paid semi-annually, which means you begin to see a return on your investment in six months.

Second, because they are flexible investments. While BOSS+ bonds have a maturity period of five years, you have the option of redeeming them, without penalty, after just 24 months. You can also trade them on the secondary market at any time after you purchase them (except in the months when interest is paid).

And third, because they are a safe investment. Like savings bonds, BOSS+ bonds are protected from debt restructuring.

There’s another reason you should buy BOSS+ bonds, however. The money you invest in BOSS+ will be spent on projects that contribute to Barbados’ economic, social, and environmental development.  For example, government will use it in its efforts to mitigate the impact of climate change – a benefit for each of us. That means that while you’re helping yourself, you’re also helping the country.

How can I use BOSS+ to boost my savings, improve my income, and enhance my finances?

Because they offer an attractive interest rate, 4.5 percent per annum, investing in BOSS+ bonds will help your savings grow at a faster rate than if you left your money in a savings account. As an example, if you invest $2,000 in BOSS+, at the end of five years, you’ll have earned $450, as opposed to investing the same amount elsewhere with interest rates at .015 percent per annum and earning $15 before tax.

And because you receive interest twice a year, and that interest is not subject to withholding tax, you’ll have additional cash on hand, supplementing your income, in the event that you need it.

Who can invest in BOSS+?

If you’re a Barbadian over 18, you can invest in BOSS+ either on your own, or jointly with someone else. You can also buy BOSS+ bonds in trust for your minor children.

Businesses, churches, and other organisations can also invest in BOSS+.

How does BOSS+ benefit my country and me?

The money you invest in BOSS+ will be used on projects that contribute to Barbados’ economic, social, and environmental development. For example, government will use it in its efforts to mitigate the impact of climate change - a benefit for each of us. That means that while you’re helping yourself, you’re also helping the country.

And the attractive returns it offers, 4.5 percent interest per annum, will help boost your savings or supplement your income.

When can I buy BOSS+ bonds?

You can buy BOSS+ bonds any time that there is an issue open.

Where can I buy them?

You can buy BOSS+ bonds from the Central Bank of Barbados. Email us at publicdebt@centralbank.org.bb.

What’s the process for buying BOSS+ bonds?

To buy BOSS+ bonds, you’ll need to complete an application form, which is available on the Central Bank of Barbados’ website. Submit the application in person or via email to publicdebt@centralbank.org.bb and make your payment. Here are your payment options:

  • Cash for purchases of $500
  • Direct transfer from your bank account to the Central Bank of Barbados (Account number 142606) 
  • Cheques for purchases up to $100,000
  • Transfer via the automated clearing house (ACH) from your commercial bank for purchases up to $100,000
  • Transfer via Real Time Gross Settlement (RTGS) from your commercial bank for purchases above $100,000

What is the smallest amount I can purchase?

The minimum investment is $500. Thereafter you can buy in increments of $100.

Is there a maximum I can hold?

No. There is no maximum investment apart from what is available when you apply.

Can I purchase jointly with someone else?

Yes. You can purchase BOSS+ bonds jointly with up to two other persons.

Can I purchase for my minor children?

Yes. However, you must purchase the bonds in your name, “in trust for” your minor children.

Are BOSS+ bonds purchased at par?

Yes. You pay the face value for the bond and receive 4.5 percent interest per annum on that amount. And the interest you get is not subject to withholding tax.

Can I get a standing order to purchase monthly or will I need to apply each time?

You will need to complete a new application each time you want to purchase BOSS+ bonds

Can payment be taken from my account or do I have to write a cheque/bring cash?

There are several ways you can pay for your BOSS+ bonds:

  • Cash for purchases of $500
  • Direct transfer from your bank account to the Central Bank of Barbados (Account number 142606) 
  • Cheques for purchases up to $100,000
  • Transfer via the automated clearing house (ACH) from your commercial bank for purchases up to $100,000
  • Transfer via Real Time Gross Settlement (RTGS) from your commercial bank for purchases above $100,000

What do I get as proof of my holdings?

You will get an e-statement confirming your holdings when you purchase your bonds. You will also get an updated statement each time you make a purchase or a sale from your account.

Do I have to purchase BOSS+ bonds directly from the Central Bank or can I apply through my bank?

You will need to purchase your BOSS+ bonds directly from the Central Bank.

What about if I only have a credit union account? Will the Central Bank take payment through my credit union? Will my interest be lodged to my credit union account?

Yes. Your credit union can issue a draft payable to the Central Bank on your behalf. And once you start to receive interest on your BOSS+ bonds, it will be lodged to your credit union account.

How and when will I receive my interest and get back my principal?

You’ll receive interest on your investment twice a year (on February 28 and August 31), and the principal will be repaid when the bonds mature in five years. If you choose to redeem your BOSS+ bonds early (after 24 months), you’ll receive your principal back at that time.

Both the bi-annual interest payments you earn and the principal will be credited to your account.

Can I roll over my half yearly interest to buy new bonds?

No. You’ll need to complete a new application each time you want to buy bonds.

How can I sell my bonds?

You can sell your bonds on the secondary market through a broker, e.g.  Royal Fidelity, NCB, SigniaGlobe. You can also sell them directly to someone else.

At what price can I sell my bonds?

The price at which you sell your BOSS+ bonds will be based on negotiations with the buyer or at the market value based on the listed price on the Barbados Stock Exchange.

How soon after I buy my bonds can I sell them?

You can sell your bonds at any time after you buy them, except during the months when interest is scheduled to be paid (February and August).

Is there a surrender option or do I have to find someone to purchase them from me?

If you wish, you can redeem your bonds 24 months after they are issued instead of waiting the full five years. Before then, you will need to sell your bonds on the secondary market, or trade with another person.

Can I sell my bonds to the Central Bank if I can't find someone to purchase them on the secondary market?

You can’t sell your bonds to the Central Bank. If you want to sell your bonds before the 24-month early redemption period, you can go through a broker, and they will facilitate the sale. You won’t need to find a buyer.

What does the redemption process look like?

Once your BOSS+ bonds mature, your account will be credited with the principal of your holdings.

How does the early redemption option work? Am I penalised in any way other than not getting the six additional interest payments?

You won’t be penalised if you redeem your BOSS+ bonds after 24 months. To do that, you will need to send written correspondence indicating that is what you wish to do at least one month prior to the early redemption date. 

Can businesses purchase BOSS+?

Yes, they can.

Is there a limit to what I can buy monthly?

No. You can buy whatever value of BOSS+ bonds you’d like as long as that amount is available.  


Copyright 2022 by Central Bank of Barbados