As you've probably learned by now, investing is one way you have the option of putting your money to work for you. And who wouldn't want that? One more way to increase your sources of income is definitely a good idea at any age.

Whether you're a first-time investor and have decided that now would be a good time to take your first steps in the stock market or you're an investor with a lower appetite for risk, government bonds are a good alternative.

What are Fidelis government bonds?

They are an alternative to bank deposits that you can consider. They are issued by the Ministry of Finance and are therefore low risk. Unlike a long-term bank deposit, set up for a period of between 1 and 3 years, you always have access to the money with the possibility to sell part or all of the invested amount on the market.

Advantages of Fidelis government securities

These securities function in the economy as a lever that the state can use for financing, being a financial instrument through which the state can borrow from the population. Therefore, once you purchase these government securities, you can enjoy the following advantages:

• An annual interest rate of 2.95% (for the lei issue maturing in 2022) and 3.25% (for the lei issue maturing in 2023);
• Access to money whenever you want, as government securities can be sold at any time in the market before maturity;
• Interest earnings and profits generated are completely non-taxable;
• There are no subscription fees;
• Dynamism and flexibility in portfolio management, so that throughout the holding period, government securities can be traded on the Bucharest Stock Exchange.

A purchase of Fidelis government securities may be right for you if...

• You saved a sum of money
• You want to become familiar with the stock market and the mechanisms of the capital market
• You focus on low-risk investments 

How can you buy Fidelis government securities?

Quite simply, you contact one of the intermediary banks eligible to sell government securities. For example, if you contact BT Capital Partners, all you have to do is open a trading account, and then our colleagues will guide you through all the steps so that everything is as easy as possible for you.

How can you trade these government securities on the BVB?

When it comes to trading government securities on the BVB, it is important to know that they are similar to any other stock, namely they have an assigned symbol and all the information about the price evolution or the traded volumes. All these details can be found on the stock exchange website www.bvb.ro.

However, keep in mind that although government bonds are a low-risk financial instrument, stock prices can vary, being mainly influenced by the general level of interest rates in the economy.

What happens at the end of the running period?

Fidelis government bonds in this offer can be purchased for a period of one or two years, depending on the type of issue you opt for. At the end of the period, the money will automatically enter your client portfolio and you will be able to withdraw the amount through our online platform.

And now... some numbers

In order to understand exactly how Fidelis government bonds work, we also bring you a calculation example to make everything crystal clear.

Government securities: Issuance lei

Expiry date: July 2023

Interest rate: 3.25%

Initial investment: 5,000 lei

In July 2022 you will receive your first interest income, calculated as follows:

5,000 lei*3.25%= 162.5 lei

Then, in July 2023, you will receive the last interest income and the 5,000 lei initially invested, to be exact:

162.5 lei + 5,000 lei = 5,162.5 lei

If you hold the securities until maturity, in these two years, you will receive a total of 325 lei (i.e. 162.5 lei*2 years) non-taxable income plus the 5,000 lei initially invested.

If you think Fidelis government bonds are a suitable savings option for you, then don't forget that until July 12 the team

BT Capital Partners can help you take your first steps on the stock market.

Editor: Mihaela Ban, Communication & PR Officer, Banca Transilvania