National Bonds changes profit payment terms

20 Dec 2010

UAE National Bonds Corporation stated that it would cut down profits its savers receive as per new calculation terms effective from the beginning of 2011, Arabian Business Reported.

Previously, all investors used to receive equal percentage of profit. By the new terms, investors are divided into tiers based on the duration of investment in the company. Tier 1 investors would receive 40 percent of the annual profit. Tier 2 investors would receive 60 percent of the annual profit and Tier 3 saver would get 80 percent. Only Tier 4 investors who have been with company from before 2010 would receive the full profit declared.

It is worth noting that many savers are concerned as this mean that many short term investors will receive in the future a profit percentage of 1.42 percent, which is much less than the rate offered by most standard bank saving accounts.

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