On October 3, 2024, the Ministry of Finance, through its Department of Economic Affairs, made an important announcement regarding the Special Deposit Scheme for Non-Government Provident, Superannuation, and Gratuity Funds.
What is the Special Deposit Scheme?
The Special Deposit Scheme (SDS) was first introduced in 1975, with the aim of providing a secure investment avenue for non-government provident funds, superannuation funds, and gratuity funds. It offers a government-backed savings option that helps organizations manage their employees’ retirement benefits effectively. The scheme is designed to ensure that these funds earn a stable return while remaining low-risk.
New Interest Rate Announcement
Effective from October 1, 2024, until December 31, 2024, deposits made under the SDS will earn an interest rate of 7.1% (seven-point one percent). This rate represents a noteworthy opportunity for fund managers and organizations to enhance their returns on the money set aside for their employees’ benefits.
