Federal Treasury Note

from Wikipedia, the free encyclopedia

Federal Treasury Bonds (not to be confused with Federal Treasury Notes or the Austrian Federal Treasury ) were public bonds issued by the Federal Republic of Germany .

The interest rates on Federal Treasury Bonds rose - as with a stepped interest bond - over the term ("interest rate staircase"). However, Federal Treasury Bills were not subject to any price risk and were not introduced into stock market trading . This differentiates Federal Treasury Bonds from listed federal bonds and federal bonds , which can only be sold on the stock exchange before maturity at the current price, which can be both below and above the nominal value .

Federal Treasury Bonds were created in 1969 to build wealth for broad sections of the population and were issued by the Federal Securities Administration. After the merger with the Federal Securities Administration , the Federal Republic of Germany - Finanzagentur GmbH took over the private customer business with federal securities on August 1, 2006 . On July 4, 2012, the finance agency announced that the private customer business will be discontinued from 2013 for cost reasons and that federal treasury bonds and financial treasures will no longer be issued. The last federal treasury note (type B), the 2012/12 edition, was due and repaid on September 1, 2019. It offered a return of 0.68% over the entire term of seven years. In the 50-year history of federal treasury bonds, the 1981/10 edition produced the highest final return of 10.74%, and the federal treasury bonds regularly performed better than an average euro bond fund in return comparisons.

differences

There were two types of federal treasury notes.

Type a

The term was about six years. Interest was paid at the end of each maturity year ( distributed ) and were at the time the interest payment tax.

Type B

The term was about seven years. The interest was accumulated ( reinvested ) over the years and only paid out at the end of the term together with the repayment of the nominal value (investment amount). The total amount of the interest was therefore only taxable when it was due.

interest

Interest rates rose progressively; That is, less interest is paid in the early years than in the end. This should create incentives to hold the federal savings bonds until the end of the term.

Acquisition and custody

Type B federal treasury bonds and federal bonds in a 1990 deposit statement from Raiffeisenbank Emmerich

The issuance of federal treasury notes was discontinued in 2013. In principle, they could be purchased free of charge from all financial institutions and directly from the Federal Finance Agency. The federal treasury notes could also be acquired there using the so-called transfer procedure; the minimum transfer amount was 52 euros, the minimum nominal value to be acquired was 50 euros. The group of acquirers was limited to natural persons and certain non-profit or benevolent institutions and associations.

Federal Treasury Bills could be administered free of charge at the Federal Finance Agency until they were due , while credit institutions might charge the usual custody fees for fixed-income securities.

Early return

The early return of Federal Treasury Bills was possible after the end of the first year of the term in the amount of a maximum of 5,000 euros nominal value per creditor every 30 interest days.

See also

Individual evidence

  1. ↑ BMF publication on the dissolution of the Federal Securities Administration ( memento of April 2, 2015 in the Internet Archive ), accessed on March 12, 2015.
  2. ↑ Press release of the Finance Agency of November 22, 2012, PDF 36 kB, accessed on March 12, 2015.
  3. ^ From for Federal Treasury Bills , FAZ article from July 3, 2012, accessed on March 12, 2015.
  4. ↑ eFORUM: Federal securities January 2010 from February 19, 2010, PDF 318 kB, accessed on January 10, 2020.

Web links

Wiktionary: Bundessschatzbrief  - explanations of meanings, word origins, synonyms, translations