Interest on Tax Reserve Certificates 2024
The Secretary of Financial Services and the Treasury have approved a modification to the interest rate that must be paid on Tax Reserve Certificates, according to a Legal Notice that was published in the Government Gazette 31 May 2024. Instead of the present rate of 0.9250 percent, which is $0.0736 per month for every $100, as on 3 June 2024, the new annual rate of interest will be 0.8833 percent.
Tax Reserve Certificates are subject to simple interest, which is computed monthly (including prorated interest) from the date of purchase until the tax payment deadline. When a certificate’s principle is returned to its holder, interest is not owed; interest is only credited when the certificate is used to pay taxes.
In accordance with the direction of the market, the interest rate payable on Tax Reserve Certificates is periodically adjusted. It is now evaluated monthly using the average current interest rate for the 12-month time deposit, which ranges from $100,000 to $499,999, provided by the three banks that issue the notes.
All certificates acquired on or after 3 June 2024, will be subject to the revised rate. Interest will continue to be paid on certificates acquired before to 3 June 2024, at the rates in effect on the dates of purchase. An overview of the interest rates over the previous periods is shown below:
The normal rule that interest stops accruing after 36 full months always applies to this.
For certificates purchased on or after | 0.5833 per cent per annum |
For certificates purchased on or after | 0.7500 per cent per annum |
For certificates purchased on or after | 0.7667 per cent per annum |
For certificates purchased on or after | 0.8083 per cent per annum |
For certificates purchased on or after | 0.8833 per cent per annum |
For certificates purchased on or after | 0.9250 per cent per annum |
For certificates purchased on or after | 0.8833 per cent per annum |
