The Bureau of Treasury on Monday started rolling out, through six banks, the so-called Premyo bonds, an investment instrument that is intended to help ordinary people to start investing in government bonds.
Unlike other government bonds, these bonds do not allow corporate investors to buy into them as the smallest denomination is P500, good for those people who have not had enough resources to invest.
As expected, government bonds are considered low risk low returns, but the catch is investors can get back their principal after a year with an earning of about three percent. An attraction is that investors will also have the possibility of winning prizes, the biggest being P1 million and housing units.
Although the earning is minute if compared with other instruments, the good thing is that since the country is experiencing a better economic climate, particularly the low inflation rate, investors will earn even if small.
Although people might question this program at face value, the good thing is that this will teach the masses the processes of investing in government instruments that do not have huge risks as they will be able to slowly understand financial management even if their resources are small, sometimes not even enough for their needs.
This will also help them divert their attention from the so-called suspicious investment schemes, many of these schemes becoming scams because of greed both of those behind them or those who thought they could take advantage of the vulnerable.
This investment instrument could not have come at an opportune time as this will help the masses, in general, to slowly get educated not only on how to save but on how to grow their meager incomes in legal, low risk ways.