Following the decrease in Base Rate last Thursday by 1%, from 3% to 2%, the Gibraltar Government has to-day announced a series of measures to protect savers in Gibraltar Government Debentures and Gibraltar Savings Bank Debentures from the effect of plunging interest rates.

Under the existing scheme, pensioners get 0.5% above Base Rate. Base Rate has fallen to 2%, meaning they would now receive 2.5%. Under the new scheme pensioners who invest in Gibraltar Government debentures will continue to receive at least the 3.5% they were getting before last Thursday’s interest rate cut. In addition, the rate of 3.5% becomes a floor, and will remain the minimum rate they will receive regardless of how much further interest rates fall during the next 3 years at least.

For pensioners who want a guaranteed higher interest rate, there will be the option to buy Gibraltar Government Fixed Term 3 year Debentures paying the fixed rate of 4.25%, for the next 3 years. In the case of this higher yielding debenture, although the interest will be paid monthly, the capital cannot be withdrawn for 3 years.

1. by Anna Bensusan on 2 April 2009, 23:13

   It’s all very well for pensioners. What about us young families trying to pay mortgages, endowments and support 2 kids, why don’t we get special rates too? It’s hard enough as it is these days!

2. by Salomon Wahnon on 5 August 2009, 01:06

   I have some money to put aside but I would like to understand why is this better than a Bank or Building society.

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