Governor of the Central Bank of Barbados, Dr DeLisle Worrell, on Tuesday urged nationals to consider buying government bonds rather than putting all their savings at commercial banks.
Addressing the fourth annual Domestic Financial Institutions seminar, Worrell said that individual savers do not do very well at commercial banks, earning 2.5 per cent on savings only because the central bank stipulates that minimum.
"It is no secret that banks are unhappy that there is a minimum at all. I am suggesting to individuals that, for all their rainy-day savings, they consider government savings bonds instead."
He said savings bonds were just as convenient as savings deposits, "because you buy them at commercial banks, and they are just as liquid as savings deposits, because you can cash them in at any time. However, if you hold them for the full five years of their maturity, you earn an interest rate in the region of five per cent, compounded over five years," Worrell told the seminar.