Savings Bonds (Amendment) Regulations 2015

What’s New with Savings Bonds? Saving Bond (Amended) Regulation 2015

In 2015, the Government of Barbados made amendments to the Savings Bonds Regulations, (1980) that increased the maximum nominal value that investors can hold per series and that changed the way Savings Bonds certificates will be issued.

What this Means for Series Opened in 2015 and Onwards

• Individual bondholders can now purchase up to $100,000 (nominal value) per series.
• Registered benevolent organizations (credit unions, friendly societies, registered charities, etc.) can now purchase up to $100,000 (nominal value) per series.
• Two persons purchasing savings bonds jointly can now purchase up to $200,000 (nominal value) per series.
• Bondholders will now receive one certificate for the total nominal value of the savings bonds they purchase.
• Savings bonds will be issued in multiples of $50 (nominal value) increments, e.g. $2,050, $2,100, $2,150.
• Bondholders can still choose to surrender* a portion of their savings bonds. They will get the requested amount (surrender value) in cash and a balance certificate for the remaining nominal value. As an example, if you have a certificate for $7,500 (nominal value) and want to surrender* $2,500 (nominal value), you will receive the current value for the $2,500 as determined by the Schedule of Surrender Values (found on the back of the certificate) for the specific series – and be issued a balance certificate for $5,000 (nominal value).
• Any partial surrender of the value of savings bonds must be in multiples of $50 (nominal value).

What this Means for Series Opened in before 2015

• The maximum nominal value that can be held per series remains $50,000 for all categories of bondholder.
• The denominational certificates -– $50, $100, $500, $1,000 and $5,000 – that were issued before the amendments remain valid until they are surrendered or have matured.
• Bondholders surrendering some or all of their savings bonds will receive the current value as determined by the Schedule of Surrender Values (found on the back of the certificate) for the specific series.
• Bondholders can only make surrenders of theirs savings bonds based on the denominations of the certificates they were issued. As an example, if you purchased $5,000 (nominal value) and received five $1,000 (nominal value) certificates, you could only surrender your savings bonds in increments of $1,000. Balance certificates will not be given on surrenders of series opened before 2015.

* Surrender means to cash in before maturity.