Differences in How to Buy Government, Private, and Retail Bonds

Currently, many invest in government bonds. Bonds are a type of investment that is safe and can be used as an alternative to save funds. How do I buy it? The steps taken depend on the type purchased. Each has advantages, disadvantages and different ways of buying.

Before deciding to buy this type of securities, investors must understand their character and potential profits. Like other investment instruments, the higher the profit, the greater the risk. But if you are observant and good at applying tips and tricks in investing, securities can bring many benefits.
How to Buy Government, Private, and Retail Bonds

Allowing money to settle in savings is not a wise move because its value can decrease due to inflation. One way to develop by buying bonds. Bonds are debt securities issued by fund seekers or issuers by providing profits in the form of coupons or yields to investors.

This type of investment has a small risk, especially if you choose a trusted issuer. The benefits of investing in bonds come in two ways. The first is the yield or coupon given by the issuer. The second is from capital gains, namely the difference in the purchase price when the owner of the securities sells them. Anyone can buy government, private and retail bonds.

Buy Government, Private, and Retail Bonds

Bonds the word on wooden cubes, cubes stand on a reflective surface, in the background is a business diagram. Business and finance concept

Types of Bonds You Must Know

Issuers are very influential on the risk for investors. The types of risks that may occur are default, liquidity, market developments, and regulatory changes. Before investing, it is necessary to know the condition of the issuer. However, due to the long term, the issuer’s economic condition may change at maturity. Types of bonds by issuer.

Government bonds: namely types of bonds issued by the government through the Ministry of Finance and sold directly to the public or to distribution partners.

Corporate bond: a type of bond issued by a corporation or private company, one of which is a state-owned company.

Retail Bonds: as the name suggests, this type of bond sells products from government issuers in retail with a minimum nominal value of IDR 1 million and a short term of one year.

Different Ways to Buy Bonds

Each issuer has provisions for buying bonds in accordance with their regulations. This method is to make it easier for investors and fulfill the required procedures. Following are the different ways of purchasing from each issuer.

1. Government Bonds

To buy these bonds is quite easy. The government issued several types with a more affordable nominal. Because it gets a guarantee from the government, investors do not need to hesitate to invest. The method is:

Registration: begins by entering personal data and Single Investor Identification (SID) number
Order: enter the type of bond and the nominal to be purchased
Payment: pay the nominal amount purchased.

2. Corporation

In contrast to government bonds that are guaranteed so that they are safer, when choosing corporate products, you must be more selective. To attract investors, issuers provide larger coupons. The process is:

Opening an account: investors should choose a securities company with a fixed income division that will handle bond transactions.
Understanding bond products: because they are risky, investors must understand their features, potential advantages and disadvantages.
Analyzing bonds: before deciding to buy, it is necessary to analyze the possible profit and loss.
Giving trust to traders: to be able to buy bonds, investors need to give a mandate or authority to traders to make transactions.
Prepare funds: next, investors must prepare funds at the price of the bonds purchased.
Payments: make payments in several ways, both online and offline.

3. Retail

Retail is a distribution partner that sells government-owned bond products to the public. Usually provides debt securities with a small nominal so that investors with limited funds can invest. How to buy is:

Choosing distribution partners: choose trusted distribution partners by searching for information and selecting them.
Registering: this process requires personal data and SID, if you don’t have one, you can register first.
Ordering: after registration, investors can order bonds according to the availability of funds. Reservations can only be made on the offer date.
Payment: after the order is verified, it will get a billing or bill and must be paid immediately before it expires.
Confirmed order: proof of purchase order has been completed, investors will receive a State Revenue Transaction Number (NTPN). Investors will also receive information on the maturity date, return date and proof of bond ownership.

Different Ways to Buy Bonds

Easy Bond Investment with digibank by DBS

High profits and low potential losses make bonds a great investment for both beginners and experienced investors. Moreover, currently many issuers offer products with various advantages and easy and fast ways of transacting. Anyone has the opportunity to own government, private and retail bonds.

digibank by DBS provides securities with low nominal value, namely
1. Purchases start from IDR 1 million

In the digibank by DBS application, you can buy bonds starting from IDR 1 million for IDR bonds. As for dollar Bonds, you can buy $1000 Bonds.

You can have securities starting from a nominal value of Rp. 1 million only so that anyone can have it.
2. More Diverse Products

Prospective investors should not hesitate to invest through digibank by DBS. This platform is very complete. There are 70 choices of secondary market bond products that can be tailored to the needs and desires of investors. Many choices make it easy for investors to choose the one that suits their needs and availability of funds.
3. All transactions can take place in the palm of your hand

One of the things that makes investors lazy to invest is having to come to the bank for processing. However, by using the digibank by DBS application, all transactions can be carried out from the palm of your hand, namely the SID registration, buying and selling processes can be carried out directly from the platform. For those who want to buy but do not have an SID can directly register online. So, you don’t need to queue in advance.

Government bonds are a type of safe and profitable investment. because there is a guarantor, investors do not need to worry about the risks that may occur. Moreover, it is available with a small nominal that allows anyone to invest. The potential for double income from both yields and capital gains provides maximum benefits. Come on, invest in bonds through the digibank by DBS application. Experience the convenience of transacting without the slightest hassle. The security of your data is guaranteed. So what are you waiting for?