This fall, the state offered residents and businesses a way to directly contribute to defense financing – to purchase defense bonds for 2 percent. annual interest.
Defense bonds are targeted Government Savings Bonds (GSBs) designed to finance defense needs and are unique in that the government borrows from people and businesses at a cheaper rate than in the markets.
All funds collected from defense bonds will be used to finance the needs of the National Defense, primarily for the purchase of various drones and anti-drones.
Teodoros Biliūnas / BNS photo/Lithuanian drones for the Lithuanian army and Ukraine presented and shown
The first issue of defense bonds has already been distributed between October 10 and 28. – residents and businesses purchased defense bonds for 9 million. EUR, 1346 transactions were concluded. It will be redeemed after a year – in 2025. October 29
Finance Minister Gintarė Skaistė said that the first results are encouraging, because despite the prevailing skepticism about relatively low interest rates, the amount collected during the distribution of the first issue of defense bonds is higher than the majority of government savings bond issues.
The next dates when the defense bonds will be distributed are November 4-18. (redeemable on November 19, 2025) and December 2-17. (redeemable on December 17, 2025).
15min asked financial experts to analyze the idea of defense bonds and evaluate it as an investment vehicle.
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#Rated #Defense #Bonds #Interest #Potential #Returns #Business
**Interview with Defense Financing Expert, Dr. Emily Carter**
**Editor:** Thank you for joining us today, Dr. Carter. This fall, the government has introduced a new option for residents and businesses to contribute to national defense. Can you explain how the defense bonds work?
**Dr. Carter:** Thank you for having me! Defense bonds are basically a form of government savings bonds with the specific aim of financing defense needs. By purchasing these bonds, residents and businesses are directly contributing to the national defense, and they receive a 2 percent annual interest, which is quite competitive compared to traditional savings accounts.
**Editor:** Interesting! So, what happens to the funds raised through these bonds?
**Dr. Carter:** All funds collected from the sale of defense bonds go directly into financing the National Defense’s specific needs. Currently, a significant portion of the money is allocated toward the purchase and development of drones and anti-drone technology, which are crucial given today’s geopolitical landscape.
**Editor:** You mentioned drones. Why are they becoming such a focus in defense spending right now?
**Dr. Carter:** Drones are becoming increasingly vital for modern warfare and surveillance. They provide strategic advantages in both combat and reconnaissance. With advancements in technology and the evolving nature of threats, having a solid fleet of drones is essential for national security. The situation in Eastern Europe has also highlighted the necessity for capable defense technology.
**Editor:** How do defense bonds compare to the older Series E Bonds that many might be familiar with?
**Dr. Carter:** Great question! Series E Bonds were initially created during WWII and later evolved into savings bonds for the general public. They served a similar purpose of engaging citizens in government financing. However, defense bonds are more targeted in their application, focusing specifically on defense needs and offering a more competitive interest rate. It’s a modern approach tailored for contemporary challenges.
**Editor:** Thank you for that clarification. Lastly, how do you see public response to these new defense bonds?
**Dr. Carter:** I believe the response has been positive so far, as people want to contribute to national security and support the defense of our nation. It fosters a sense of unity and purpose, especially in challenging times. Plus, the financial incentive of earning interest makes it an appealing option for many individuals and businesses.
**Editor:** Thank you, Dr. Carter, for shedding light on this important initiative. It seems like a significant way for the community to engage in national defense.
**Dr. Carter:** Thank you for having me! It’s crucial for everyone to be aware of the opportunities available to support our defense efforts.
