AS members of the Solomon Islands National Provident Fund (NPF) await what percentage they’ll get on their savings next month, Fiji National Provident Fund has declared a massive 6.25 per cent interest rate payout.
This was announced by Fiji’s Minister for Finance, Aiyaz Sayed-Khaiyum, during the 2016-2017 National Budget announcement this week.
“The 6.25 per cent interest rate would be the highest paid by the fund since 2006,” Mr Sayed Khaiyum said.
“Once paid out, this interest rate would provide a major boost to members’ funds. It is worth noting you may not be able to get such high interest rates on any term deposits,” he added.
Mr Sayed-Khaiyum said the strong financial position of FNPF was achieved because of the reforms implemented under the Bainimarama Government a few years ago.
“The reforms adopted by the fund have produced an extremely sound investment mechanism for FNPF and an important source of investment for the nation,” he said.
“This was recently also reconfirmed by third party actuarial assessments.”
Mr Sayed-Khaiyum recognised FNPF’s major role in helping maintain our economy performance when the country was struck by disaster in the form of Tropical Cyclone Winston.
“The FNPF allowed members to withdraw $1000 (US$500) in post-cyclone assistance and up to $5000 (US$2,500) for quick repairs assistance,” he said.
“FNPF has paid out $276 million (US$133.2 million) to 180,000 members under this cyclone assistance.”
Meanwhile, the NPF board is expected to announce what rate it’ll pay its members next month.
The highest rate NPF has ever paid to its members was 20 per cent in 2013.
It has been speculated that the fund is likely to make a 5 per cent interest rate pay-out this year.