Federal loan bonds for the population (OFZ-n)

Federal loan bonds are a reliable investment tool for individuals. OFZ-n securities issued for circulation by the state in 2022 can be purchased at VTB or Sberbank from March 15 to September 14. Provided that government bonds are purchased during this period and held for 3 years, the profitability of OFZ-n will exceed the benefit from any deposit in a Russian bank for the same period.

What is OFZ in simple words

Before we figure out how OFZ differs from OFZ n, let me remind you of the main points.
OFZ are federal loan bonds. They are a security, by purchasing which you lend the state of the Russian Federation a certain amount. After a predetermined period, the borrower returns the investment to you along with accrued interest, which is called a coupon. Today there are several types of OFZ, for example:

• OFZ PD - with a constant income that is known in advance;
• OFZ PC – with a variable coupon that is unknown in advance;
• OFZ IN – with an indexed denomination, which constantly increases in accordance with inflation.

Among these varieties there is OFZ n. These are bonds for the population, which are also often called people's bonds. They are also coupon-paying securities. But they are quite different from ordinary government bonds. Let’s look at what exactly it is right now.

What are they and why are they needed?

Using federal loan bonds, the state raises funds from individuals and legal entities. The issuer of such bonds on behalf of the state is the Ministry of Finance of the Russian Federation. Private investors can buy and sell federal bonds on the secondary market. Large players, in addition, can also participate in primary placement auctions, purchasing large lots of bonds.

There are no more reliable instruments on the Russian market for individuals than federal government bonds. In 2022, against the backdrop of non-residents withdrawing from OFZs, special types of federal loan bonds, aimed specifically at individuals, began to receive active distribution. But more on that a little later.

Hurry up to take advantage of the doubling of the tax deduction until December 31, 2022.

State goals

The primary task of issuing federal loan bonds is to maintain balance and cover the budget deficit. In addition, the goal may be to pay off debt to other states. Infrastructure development is also included in the list of targets for the issue of federal loan securities. In recent years, for example, a large amount of funds raised from individuals has gone to large-scale infrastructure projects.

Validity

Federal loan bonds are issued with different maturities. In 2022, the prevailing number of issued instruments aimed at individuals have a maturity of 3 years. On the Moscow Exchange you can find issues with both shorter and longer circulation periods. Federal loan bonds are often divided into short-, medium- and long-term.

Concept and types

Let me remind you that a bond is a debt security that records the debt of the company (organization) that issued it to the buyer. Issuers can be commercial enterprises from all sectors of the economy, banks, regional governments and even the state. It is the latter, represented by the Ministry of Finance, that issues OFZs.

OFZ stands for federal loan bond. By buying it, you are lending to the state. It undertakes to return the nominal value (RUB 1,000) to you within a predetermined period and regularly pay coupons (percentage of the nominal value) for the period of holding the security.

Why are government bonds considered a low-risk instrument? Because the option of an investor not receiving invested money and coupons can only occur in the event of a default by the issuer, i.e. the state. Of course, this can happen, but this is a last resort for any country. Today, the Russian economy is much stronger on its feet than at the end of the last century.

Any long-term investor has OFZs in his portfolio. Primarily as a protective mechanism against swings in the stock market, when stock prices can fall significantly. What share of the total capital they should constitute is determined by each individual independently. But the general recommendation is that the shorter the investment period, the higher this share should be.

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For example, you are saving for retirement. When it is 15–20 years away, you can safely take risks and invest money in stocks and corporate bonds. There is still time to recoup. But when there are only 5 – 10 years left, you cannot risk money. In this case, it is better to increase the share of low-risk assets in the portfolio, for example, using OFZs.

The following types of government bonds are currently circulating on the market.

• With constant coupon income (PD) - the most common type on the Moscow Exchange

You know in advance what coupon you will be paid. For example, OFZ-26212-PD. According to it, you will receive 35.15 rubles every six months. at a rate of 7.05% per annum. And so on until the maturity date, January 19, 2028. The advantage of bonds with a constant coupon is their predictability; the investor knows in advance the amount of profit and the yield of his securities. You can select securities for your portfolio so that you receive coupons every month. So much for passive income.

• With variable or floating coupon income (PC)

The coupon size varies depending on the RUONIA rate. The main disadvantage is the inability to calculate profits in advance. The advantage is protection from sharp fluctuations (volatility) in the Central Bank key rate. This process affects the yield of OFZ.

RUONIA is the weighted average rate at which the country's large banks issue loans to each other for 1 day. Its value is calculated daily by the Central Bank of the Russian Federation using a special method, but does not go far from the key rate. Linking OFZ to RUONIA looks like this: the next coupon will be equal to the average RUONIA rate 6 months before the coupon determination date, plus a small premium.

Let's look at the example of OFZ-29006-PK. The last known coupon will be paid on February 5, 2020 in the amount of 8.73% per annum or 43.53 rubles. For example, on February 10, 2016 it was equal to 14.48% or 72.2 rubles. Coupons are defined as the 6-month average RUONIA + 1.2%.

• With debt amortization

The investor does not receive coupon payments during the life of the security. The Ministry of Finance is gradually repaying the nominal value of OFZ. Everything is also quite predictable. For example, according to OFZ-46011-AD, depreciation looks like this:

• With denomination indexing (IN)

The bonds pay small coupons (2.5%), but the face value increases annually by the amount of inflation. As of December 2022, only two issues are traded on the Moscow Exchange: OFZ-52001-IN with maturity in August 2023 and OFZ-52002-IN with maturity in February 2028. This is what coupon payments look like:

How to make money from them

For individuals who are ready to buy OFZs, the main option for making a profit is regular coupon payments. A coupon reinvestment strategy may be a good solution here.

Other types of federal bonds are traded on an exchange, which means there is a way to benefit from the market price of the bond. Let me give you a real example. Government paper series 26207 in September 2022 cost 95% of the face value, and at the end of 2022 and the beginning of 2022 it was already trading at about 100% of the face value. Investors who bought this security during that period, in addition to the coupon, could earn on the increase in value.

How is the OFZ rate calculated?

The rate on federal loan bonds closely correlates with the key rate of the Central Bank. For example, in the period from September 17, 2018 to December 16, 2018, the key rate was 7.50%, and from December 17, 2018 it increased to 7.75%. Representatives of the Central Bank say that in the future rates may turn around and go down. Given this information, it is possible to predict future yields on federal loan bonds.

For FD type debt receipts (fixed income), the coupon value is set only once for the entire circulation period. For government bonds with floating rates, the coupon is constantly changing.

As an example, I’ll take the OFZ bond 29006. It assumes a floating coupon and redemption in 2025. The regularity of payments is every 182 days, the previous coupon was accrued on 02/06/2019 at a rate of 8.25% per annum.

The next payment is scheduled for 08/07/2019, but the coupon rate, due to the increase in the RUONIA index, will now be 8.48% per annum. To calculate the rate and yield on instruments, individuals can use special bond yield calculators located on the cbonds and rusbonds websites.

What is the profitability

The coupon yield on federal loan bonds will be a couple of percent higher than the rate on deposits for individuals. For example: a deposit in Sberbank in 2022 guaranteed an interest rate of 5–5.5% per annum. And the rate on OFZs aimed at individuals, which was offered by the same Sberbank also with the acquisition in 2018, is 7.25%. In addition, it involves more regular payments, the reinvestment of which will help individuals increase the percentage of earnings from investments in federal receipts.

Risks

Among Russian assets, federal loan bonds have the highest reliability rating. Payments under them are guaranteed not by private individuals, but by the state. Many investors classify such government securities as risk-free assets.

Are they taxable?

All types of federal loan bonds are exempt from tax on coupon income. However, 13% PFDL will still have to be paid if there is a profit from an increase in the value of the body of the promissory note. But this applies only to sales on the secondary market and does not affect popular OFZs aimed at individuals.

Is it profitable to buy

The benefits of purchasing OFZs compared to a deposit are obvious. Many individuals, other things being equal, have already begun to prefer bonds to standard deposits, and this is a good sign for the general financial mentality. Higher profitability, liquidity and regularity of payments, combined with the highest level of reliability, give these instruments an unconditional advantage.

Is it possible to buy on IIS?

An individual investment account is another tool that individuals have begun to actively adopt at the present time. You can use this account to purchase any type of federal loan bond. With only one limitation: the maximum amount you can top up your account per year is 1 million rubles.

Where can I see the list of products available for purchase?

Those OFZs that are traded on the Moscow Exchange can be tracked through special sites on investment topics: rusbonds, cbonds, etc. Information is available online through interactive broker terminals. If you need information on OFZ-N for individuals, which are sold only in the banking system, then you should look for it in the current offers of banks.

How much does 1 piece cost?

In most cases, the face value of one federal loan bond is set at 1 thousand rubles. However, the purchase of national bonds for individuals now has a minimum financial threshold of 30 thousand rubles.

More about federal loan bonds

One of the most reliable ways to receive income from investments is to purchase bonds of the Ministry of Finance of the Russian Federation, or federal loan bonds (OFZ). The main difference between such securities is that in this case the borrower is the state, therefore, the risk of default is minimized. On April 26, 2022, the Ministry of Finance began issuing “people’s” OFZs - bonds intended not for companies, but for individuals. For the state, this is an opportunity to attract additional funds, and for investors, to receive income with a guarantee of return on investment.

Are they taxable?

The only fees that a people's bond is subject to are bank charges. Agent banks, which are VTB and Sberbank, charge a commission when closing a bond. For an amount up to 50 thousand rubles it will be 1.5% of the transaction, from 50 to 300 thousand - 1%, and from 300 thousand - 0.5% of the total amount. The state does not impose taxation on this type of securities.

Read in a separate article all the features of taxation of OFZ, corporate and foreign currency bonds.

Main characteristics of government bonds

Basic characteristics The issuer is the one who issued the bond. Issuers can be large companies or government agencies. The investor buys securities from them. The face value is the amount that investors receive on the maturity date of the bonds. The maturity period is the period of time (a year or several years) during which the issuer uses investors' money. The repayment period is known immediately and is the same for everyone. A coupon is an interest payment from the issuer to all bondholders. Payments are regular, most often the schedule is determined and known in advance. To receive the money, you must own the bond on the coupon payment date. The issuer sets the coupon size. It can be constant or linked to inflation and interbank rates.

Issuer Features

Such securities are issued only in digital form; to purchase them you will need to use brokerage services. Brokers are exchange intermediaries who, for a certain fee, provide access to special accounts. After completing the transaction, the buyer becomes the owner of government securities, the minimum quantity for purchase is 30 pieces.

From the 2nd quarter of 2022, the Ministry of Finance began issuing bonds in a new format: unlike the first issue, clients will not have to pay large brokerage commissions; the issuer will bear all expenses. In addition, holders will have the opportunity to obtain loans from banks secured by such securities. The first version did not allow such operations.

Bonds of the Ministry of Finance are an opportunity to attract a wide range of investors throughout the country and receive additional capital for the implementation of various government projects. Buyers are attracted by the opportunity to receive income at a floating rate: the longer the bond is in the hands of the buyer, the higher the yield will be on it; this scheme is beneficial specifically for those who are planning long-term investments.

Purchase without intermediaries

Issues of OFZ-n are carried out by the Ministry of Finance for individuals who are not familiar with exchange trading. Purchasing securities directly from an agent bank requires a smaller volume of transactions; you just need to open an account and conclude an agreement. On the other hand, purchasing OFZ-n from a bank reduces the profitability due to the commission to 1.5%.

To obtain the maximum benefit from a bond, you can use brokerage services; such companies operate both as separate structures and as subsidiaries of the same agent banks.

Opening a brokerage account is no more complicated than opening a bank account, and there are no large commissions for the purchase of securities. The inconvenience is the need to install a trading terminal on your computer and independently purchase bonds through it. The positive aspects include savings on the service, and the ability to purchase any number of bonds and resell them without financial losses.

Advantages of investing in OFZs

Investing in federal loan bonds is an opportunity to be guaranteed not to lose your invested funds. The commercial sector is subject to various economic factors; even the most reliable companies may unexpectedly encounter financial difficulties and fail to meet their obligations. The state acts as a guarantor of debt repayment.

Additional advantages of investing:

1. Increased profitability compared to bank deposits. You can earn larger passive profits.
2. Average return times. Long-term programs are not of interest to all investors; an investment for 3 years will be the best option.
3. Relatively low entry threshold. This makes OFZ available to individuals.
4. Known returns are an important difference from investing in large company stocks. They may not pay dividends, but the state is guaranteed to fulfill its obligations on coupon income.

The disadvantage of OFZs is the relatively low interest rate. This option is suitable for those who prefer conservative rather than risky investment strategies.

Investor reviews

Many experienced investors use this tool and have mostly positive reviews of it. Market participants note the high liquidity of federal loan receipts. Instead of storing money in cash, most traders park their capital in short government bonds. Also, according to active investors, recent years have been good in terms of earning opportunities provided by the government securities market.

Conditions for purchasing bonds

The total volume of the first state issue of 2022 amounted to 15 billion rubles. The face value of 1 bond is 1000 rubles, therefore, for the minimum purchase you will need to invest at least 30 thousand. Such securities have several features:

1. Impossibility of resale to third parties. Unlike ordinary bonds, Ministry of Finance securities are not allowed to be resold on the stock exchange.
2. Possibility of presenting for redemption at any time. The owner may demand early repayment of the debt - in this case, he will only lose the coupon income that has not been paid for the remainder of the term.
3. Rising interest rate. The longer securities remain in the hands of the owner, the higher their profitability will be. The starting rate is 7.5%, the second payment is 8%, the third is 8.5%, etc.
4. The frequency of payments is 2 times a year.
5. The duration of the return is 3 years.

The average yield on a Ministry of Finance bond is around 9% per annum, which is significantly higher than the average yield on offered bank deposits. Because of this, OFZs will become a profitable purchase for a wide range of buyers.

Price today

The price for purchasing OFZ-n changes every day. They are posted on the official website of the Ministry of Finance of the Russian Federation on this page. To view, you need to go to the “placement prices” document. The price will be indicated as a percentage of the face value. The denomination is 1000 rubles. Those. if 98% is indicated, then one bond will cost you 980 rubles, and 1010 rubles if 101%. In addition, you will need to pay on top and the accumulated coupon income (ACI) for each security, if it is not zero.

OFZ and OFZ n: what are the differences

At first glance, there is no particular difference between OFZ and OFZ:

1. OFZs give you the right to receive a coupon income (on average 6-7%) from the invested amount. You can purchase them on a brokerage or individual investment account (IIA).
2. OFZ n - everything is the same. But these securities can only be purchased from large banks. Moreover, you don’t need to open an IIS for this - just come to the office or even buy OFZ online.

Fundamental difference

However, in reality there is a difference. Ordinary OFZs are classic market bonds that are freely traded on the Moscow Exchange. This means that at any time you can buy and sell them at the market price, and thanks to this, make money on the positive difference. In this sense, OFZs are no different from stocks, indices, ETFs and other securities.

But people's OFZs can be purchased not on the stock exchange, but only in 4 banks:

1. Sberbank.
2. VTB.
3. Promsvyazbank.
4. Post Bank.

And not at the market price, but at par (1 piece = 1000 rubles). And you will also sell them at par upon early repayment, because in this case the coupon income payments, i.e. those same percentages will not exist. And if you repay on time, you will receive both the face value and the coupon.

It turns out that these are OFZ n - these are bonds for the mass consumer who does not want to go into the intricacies of exchange trading, but simply wants to invest a certain amount and receive a guaranteed interest not lower, or even higher than bank deposits. In this sense, they are no different from a regular deposit: they came to the branch, deposited money, and after an agreed period received a known percentage.

Comparison table

How else do OFZs differ from market bonds? The main points are described below.

*Coupon income is the payment of interest, as on a bank deposit. It is set differently for each bond issue. But on average (as of December 2022) it is 6-7% per annum. For ordinary OFZs, it is also often known in advance - for example, for bonds with constant income OFZ PD. And with OFZ public bonds it is always known.

**It is quite difficult to compare yields, since they change periodically depending on the specific issue, the maturity of the bonds, market conditions and other factors. Therefore, the table presents average values ​​for December 2022.

***You will not be able to transfer (donate, sell) these securities to another person. But you will be able to provide a notarized power of attorney to access the account of your spouse, adult children and others.

How to buy OFZ for an individual

OFZ purchase and sale transactions are carried out on the Moscow Stock Exchange. However, the purchase of bonds by an individual is carried out through an intermediary - a broker.

Therefore, the first step is choosing a brokerage company and concluding an agreement. At the moment, there are many different organizations, the most reliable of them are VTB Capital, Sberbank, Otkritie Broker, as well as Finnam, BCS.

Sequencing:

1. Download the distribution kit of the Quik terminal program. Through it, the investor selects bonds, analyzes quotes and makes purchase and sale transactions.
2. Deposit money into a brokerage account. The minimum price for a lot is 1000 rubles, so you can start with small amounts.
3. Preparing for your first purchase. It is more convenient to first create a pivot table by adding the “T+Bonds” class. The terminal will display all key parameters: par value, maturity date, market value, trading volume.
4. Purchase. Purchase prices are indicated as a percentage relative to the face value (for example, 90% is 900 rubles) and are marked with a green marker, the sale price - in red. In the application window you can specify the price and quantity.
5. The program will tell you how much you need to pay for the purchase, taking into account commission fees and accumulated CD. To complete the operation, you need to click on the “Yes” button.

After all the manipulations, the coupon income and the payment of the par value are made to a personal account - a bank or brokerage account.

Important: You cannot withdraw money from an IIS before the account is closed. If an investor plans to withdraw money, the broker should be warned that payments must be made to a bank account.

Pros of OFZ

The main advantages of conventional OFZs can be identified at least 4:

1. They can be sold ahead of schedule at a better market price.
2. The income for some of them is also known in advance - we are talking about OFZ PD.
3. Moreover, some bonds are guaranteed to protect your investments from inflation. We are talking about bonds with an indexed par value of OFZ IN.
4. Finally, purchasing OFZs, as well as other securities on an individual investment account, allows you to receive a Type A tax deduction, which will increase your income by 13% per annum. This is the fundamental difference between OFZ and OFZn.

It’s worth dwelling on the last advantage in more detail, since almost all investors can take advantage of the tax deduction, which means this will allow you to be guaranteed to increase your profitability. Let's say you open an individual investment account in December 2022, deposit 300 thousand and buy PD bonds with a previously known coupon of 7.0% (in fact, the coupon will increase every six months, but for simplicity we will assume that it does not change).

Then, already in 2022, you have the right to apply for a refund (deduction) of 13% of the contribution of 300 thousand, i.e. 39,000 rubles. Thanks to this, you receive an additional 13% per annum - the total return will be 13 + 7 = 20% per annum. Next year you will be able to receive a deduction again (if, of course, you replenish your IIS again). And this can continue indefinitely as long as the corresponding rule of law is in effect.

3 conditions for receiving a deduction

However, receiving a deduction is possible only if the following conditions are met:

1. You deposit a certain amount into the account (maximum 400 thousand, because a deduction is not provided for a larger amount).
2. You receive income subject to personal income tax (for example, salary), since the deduction is provided in the form of a refund of previously withheld income tax.
3. Your account will last for at least 3 years. If you close it early, the right to deduction is lost. And if you previously received payments from the tax office, they will have to be returned along with penalties.

Important!

You can also choose deduction B instead of deduction A. In this case, all income from IIS is exempt from personal income tax of 13%. But coupon income on bonds is not subject to income tax in any case. Therefore, in this case, deduction A will be more profitable.

What determine the market price and OFZ yield?

A beginner can be confused by the large number of OFZs on the stock exchange. How to choose from such a variety? First, you must decide on the investment period. You can choose bonds whose repayment will occur in the year and month when you need the money. Secondly, pay attention to profitability. It can be different:

• current – ​​yield for the current coupon period;
• current modified – yield taking into account the coupon and the difference in price at the time of purchase of the bond;
• easy to redeem - the sum of the current yield from the coupon and the difference in price, does not take into account the reinvestment of coupons;
• effective to repayment - the average annual yield taking into account all payments to the investor, redemption of par value and reinvestment of coupons.

If you do not intend to reinvest coupons, then when choosing, look at simple yield. If you reinvest, pay attention to the effective one for repayment.

The market price of a bond may be higher or lower than its face value. What does this depend on? From the Central Bank key rate, risks, maturity, supply and demand in the market. The first two factors most significantly affect the price.

For example, the Central Bank raised the key rate. This means that lending to the Russian economy will become more profitable. New OFZ issues will have increased yield. The demand for them will increase and the price will rise. And investors will begin to sell old issues in order to invest money in more profitable new ones. Supply increases, price falls. And so on until the prices for new and old issues are equalized.

A bond's yield is proportional to its price. The higher the price, the lower the profitability and vice versa. Such swings are more typical for long-term bonds; for securities with short maturities, volatility is less pronounced. The longer the repayment period and the higher the risks, the more profitable the OFZ.

The yield of government bonds can be increased with the help of an individual investment account. Let's look at an example of how to do this:

1. We open an IIS according to type “A” and deposit 400 thousand rubles every year for 3 years.
2. We buy OFZs every year. We receive coupons twice a year. At the beginning of the year following the reporting year, we submit documents for an income tax refund in the amount of 13% of the invested amount. And again we invest them in the purchase of OFZ.
3. Ideally, choose a paper with a maturity date of 3 years, when you can close the IIS. For example, OFZ-26220-PD. The coupon rate is 7.4%. Repayment – ​​December 7, 2022.

That is, the yield consists of the yield to maturity (5.6% if without reinvestment, and 5.799% if you reinvest coupons) and a return of 13% from the state.

There is no taxation of coupon income on all types of OFZs, including national ones. But on the positive difference between the sale and purchase prices you will have to pay 13% personal income tax. But this will only happen if the security is sold before maturity.

Method one: OFZ-n through a bank

The first thing that usually comes to mind is to contact the bank, they should know what bonds are and how to buy them. There is logic in this, and recently, for example, it is actually possible to purchase federal loan bonds at Sberbank, but there are nuances that we will now talk about.

People's OFZs and their differences from others

When referring to OFZ bonds, the adjective “folk” . This word “stuck” in everyday life to federal loan bonds so much that many began to consider all these securities to be popular. However, the term refers to only one type of such bonds, namely OFZ-n . This little addition in the form of the letter “n” means folk. Certain banks are engaged in the sale of OFZ-n.

Reference. OFZ-n were issued by the Russian government in the spring of 2022 to attract investment from citizens in order to pay off government debts and develop the economy.

At the same time, the most active buyers were, as a rule, people with little financial experience, or even without it at all. These bonds became an alternative to bank deposits and made it possible to diversify the financial portfolio. People's bonds were well popularized, so their first issues sold like hot cakes. Over time, the people cooled down and thought about it. Why?

Commissions for purchasing OFZ-n

When the excitement around OFZ-n subsided, the first buyers of these securities discovered some unpleasant nuances over time. They concerned bank commissions.

Point No. 1. It turned out that you will have to pay them twice:

1. when buying a bond;
2. in case of early sale.

Or, as an option, don’t trade bonds at all, but wait until they mature in three years (bummer).
Point No. 2. Bank commissions decrease as the amount entering the market increases.
That is, the larger the volume of bonds purchased, the lower the commission (this is beneficial for the bank). Commission limits are from 0.5 to 1.5%. Consequently, there is a high probability that the main advantage - the “cream” of OFZ-n in the form of a premium to the average yield of 0.5% - will be eaten up by the commission. Point No. 3. The minimum threshold for contribution to OFZ-n is the amount of 30 thousand rubles (30 bonds of 1000 rubles each). But in order to avoid losses on commissions, the investor will most likely need to purchase these debt securities in an amount no less than 300-500 thousand rubles (300-500 bonds!). Wow. Thus, “people’s” bonds “smoothly” transform into bonds for “wealthy people”, because at the current level of income such deposits are inaccessible to the majority of ordinary citizens.

Well, Memento mori (which in Latin is “we are all mortal”). The government called “people’s” bonds a tool for “increasing the financial literacy of the population,” since this mechanism is not “tested” enough. (Which, given the 2% activity in the purchase of bonds by ordinary people, can indeed become a “stuffing of cones”).

Where to buy OFZ-n?

You can buy OFZ-n for individuals through the largest banks that provide similar services. To do this, you just need to contact any of the branches for the appropriate service, preferably the most reliable and popular:

• Sberbank;
• VTB 24.

There, potential investors will definitely be advised which OFZs are better, depending on the goals they are pursuing. But if they explain to you that certain bonds are more profitable, do not forget to ask: “To whom”? Treat the recommendations received critically, not forgetting that bank employees are obliged to follow management’s orders when working with clients.

Important! Don't misunderstand. The mentioned banks also have access to the stock exchange. But this will already be a brokerage service and another legal entity. Sber and VTB even have convenient applications for smartphones for trading on the stock exchange. There you can buy any bonds and other instruments.

Who is eligible to purchase?

OFZ-n can be purchased by adult citizens of the Russian Federation who are individuals. The purchased securities cannot be transferred for registration to other banks and depositories, sold or transferred in any other way, or used as collateral. People's loan bonds can only be returned to the same bank where they were purchased.

After the expiration of the 3-year period, the cost with additional interest will be credited to the client’s personal account, after the application, or automatically. You can sell bonds before they expire, losing part of your investment income.

Method two: OFZ through a broker

Reading about all the bank commissions, you involuntarily begin to think that all this is not at all beneficial for the common person. The benefit is really dubious, but there is a solution - OFZ can be bought without huge commissions if you use companies that are brokers . And figuring this out is not as difficult as many people think.

Stock market concept and trading

Reference. The stock market (otherwise known as the securities market) is a space for trading securities (stocks and bonds) of various issuers.

Trading on the stock market takes place through exchanges, and can be done by both legal entities and almost anyone (individual) who has a computer device with Internet access to perform the necessary transactions and track financial flows.

How can an ordinary person enter the stock exchange?

To become a participant in exchange trading, all you need is:

• choose a broker for trading on the stock market: BCS, Tinkoff Investments (<- recommended), FINAM, Sberbank Investor, VTB Investments;
• conclude an agreement with him.

After this, the investor can buy and sell securities on the exchange using brokerage services.

Reference. A broker is a client’s trusted representative in the stock market, who knows well certain segments of the market and is able to predict the actions of issuers and other investors. In addition, using his experience and knowledge, this specialist can professionally help find unique solutions that meet the client’s financial needs without disclosing confidential information.

A good broker is one with which you can make the right trading decision and not lose your invested funds, as well as keep abreast of the main news and trends, which, you see, is important for a novice trader.

Small percentage for transactions

FACT. Commissions for brokerage operations are so meager that they can be said to be practically non-existent.

The commission figures for brokerage services are such that they can be neglected, since they will not make a difference.
The fact is that in this case there is no agent between the investor and his bonds in the form of a bank, which charges the lion's share of the commission - 3%. The percentage of the brokerage account is also added here. When working directly with a broker ( note: this applies only to OFZ, but not OFZ-n ), only the brokerage percentage remains.
For example, in BCS it looks like this:

If you have invested less than 30,000 rubles, then this is 170 rubles for monthly depository services per month when making a transaction in the current month + 0.043% for the transaction itself. The total is 0.343% (compared to 3% in the case of OFZ-n). If you are serious about investing and have invested more than 30,000, the commission will remain 0.043%.

You can buy bonds profitably only on the stock exchange through an official broker.

How to buy?

OFZ can be purchased only after opening a brokerage account . After opening an account, brokers offer different methods to choose from:

• buy through a mobile application (today almost every broker has it);
• quik trading terminal and buy through it;
• use the webquik trading terminal - this is an analogue of quik, but works directly in the browser (the link and login information are provided by the broker);
• contact the broker with whom the agreement is concluded directly and ask him by phone to complete the purchase.

Thus, individuals who have access to the stock exchange through a broker can buy any federal loan bonds with minimal commissions. But there are ways to reduce them even more, and even earn money by receiving a special deduction.

Advantages and disadvantages

Specific types of federal loan instruments have their pros and cons. I'll tell you about the general positive aspects. If you compare the rates of OFZ and deposits, it becomes clear that the profitability of the former is higher. In addition, the level of reliability of bonds is higher.

Bonds can be bought and sold on the secondary market without loss of return for the period. I’ll make a reservation that this point does not apply to people’s OFZs, which were actively offered for purchase to individuals through state banks.

State bonds have few downsides, although I note that they are far below corporate bonds in terms of profitability.