Buy Maltese government stocks.Investing in today’s world is important with real incomes falling all over the place but with bank interest rates at historic lows (and not looking to rise anytime soon), it is important to maximise the most out of your hard earned savings but at the same time, ensure that these are not lost in some speculative investment. One of the safest options which also guarantees a good return is Government Stock where the interest rates are usually quite good, although new stock is at a low level. You could do far worse than go on the Malta Stock Exchange and buy up some stock at a small premium with far higher interest rates, some even touching the 8 per cent mark.

If you are new to this investment scheme, the best thing to do would be to be to talk to a stockbroker who can give you sound advice on which stocks to purchase. There are several excellent and reputed stockbrokers around – these include Rizzo Farrugia Stockbrokers as well as Azzopardi Stockbrokers and Calamatta Cuschieri – the latter have been around for decades and are pioneers in the service. The first thing they will ask you is if you are a cautious or a risky investor, but if you are opting for government stock, then it is more than likely that you are classified as a cautious investor.

After having spoken to your stockbroker, the next thing to do is to identify the stock that you wish to buy. More often than not, the stock that is older and which is about to expire will have a higher interest rate but will also give you less time in which to reap the maximum out of your investment. Since stocks are usually taken out for longer periods of time, the return on your investment is slower but at the same time, it is much more secure. A typical example would be the MGS 2016 at 6.65% – this means that the stock matures in 2016 and gives an annualised return of 6.65% – an excellent rate considering that savings accounts are at 0.1%.

Some stocks are tied to European interest rates so these are very low indeed – at times less than 1% so the only gain which you may make is through a capital gain although such stocks take quite a long time to reap dividends. Your best bet would be to go for the older stocks at higher interest rates – your stockbroker will guide you on what to buy.