6.25% interest for FNPF members

Reforms have helped the Fund get to where it is

Fiji National Provident Fund members are expected to receive a massive 6.25 per cent interest rate payout. This was announced by the Minister for Finance, Aiyaz Sayed-Khaiyum, during the 2016-2017 National Budget announcement on Wednesday night.

The 6.25 per cent interest rate would be the highest paid by the fund since 2006. Once paid out, this interest rate would provide a major boost to members’ funds. It is worth noting you may not be able to get such high interest rates on any term deposits. Mr Sayed-Khaiyum said the strong financial position of FNPF was achieved because of the reforms implemented under the Bainimarama Government a few years ago. “The reforms adopted by the fund have produced an extremely sound investment mechanism for FNPF and an important source of investment for the nation,” he said. “This was recently also reconfirmed by third party actuarial assessments.” Mr Sayed-Khaiyum recognised FNPF’s major role in helping maintain our economy performance when the country was struck by disaster in the form of Tropical Cyclone Winston. “The FNPF allowed members to withdraw $1000 in post-cyclone assistance and up to $5000 for quick repairs assistance,” he said. “FNPF has paid out $276 million to 180,000 members under this cyclone assistance.”