China to offer electronic Savings Bonds

Wednesday, June 21st, 2006
Categorized as: Yesterday's News (old post archive)

According to articles yesterday in China Daily and Shanghai Daily, the central bank in China announced this week that it’s preparing to offer Chinese citizens electronic Savings Bonds in addition to the paper bonds it already offers.

China wants to control its rapid economic growth by reducing the money supply. Savings Bonds help because they will move some of China’s huge household deposits out of banks, which will limit the lending capacity of the banks.

The bonds will have an unannouced fixed interest rates and will be exempt from the normal 20% tax on interest earnings, the announcement says.

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FDIC Insured Certificates of Deposit can pay 1 or 2% more than savings bonds when held for a similar length of time. See top CD Rates Below:

One Comment

On June 27th, 2006 Tom Adams said:

Update: China Daily reports the new Chinese Savings Bonds will be three-year bonds paying 3.14%.

The going rate on three-year bank deposits is 3.24%, but the Savings Bonds are free of a 20% interest-earnings tax.

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June 1, 2010

After six years, over 400 posts, 3,680 real comments, and over 90,000 spam comments (thank you, Akismet, for making managing a blog with comments possible), I am closing public comments on Savings-Bond-Advisor.com. I will contine to update the main articles on this site, but not the comments.

Virtually every question about Savings Bonds has been asked and answered on this site multiple times. Use the search feature (see the box in the gray area near the top of this page) or the detailed menu on the lower part of the home page to find the information you're looking for. If you have a copy of Savings Bond Advisor, you can ask me a question here.

Tom Adams

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