Government bonds — what are they? Types and how to buy
Government bonds are debt securities issued by the State Treasury. Learn about types of bonds, their interest rates, and how to buy them in Poland.
Definition
Government bonds are debt securities issued by the State Treasury, represented by the Minister of Finance. By buying a bond, you lend money to the state, which commits to return it with interest at a specified time. They are considered one of the safest forms of capital investment in Poland.
Types of government bonds
Savings bonds (retail)
Available to individuals, purchased directly through obligacjeskarbowe.pl:
| Symbol | Period | Interest rate |
|---|---|---|
| OTS | 3 months | Fixed |
| DOS/DOR | 2 years | Fixed |
| TOS | 3 years | Variable (WIBOR) |
| COI | 4 years | Inflation-indexed |
| EDO | 10 years | Inflation-indexed |
| ROS/ROD | 6/12 years | Family, inflation-indexed |
Wholesale bonds (market)
Listed on the WSE Catalyst market, available through brokerage account. They can be bought and sold before maturity at market price.
Why invest in government bonds?
- Safety — guaranteed by the State Treasury
- Inflation protection — COI and EDO bonds index interest to CPI inflation
- Accessibility — minimum investment is 100 PLN
- Simplicity — online purchase without brokerage account (retail bonds)
- Diversification — stable element of investment portfolio
Government bonds vs other forms of saving
Compared to bank deposits, government bonds — especially inflation-indexed ones — provide better purchasing power protection in the long term. Unlike ETFs, they don't carry market risk, but offer lower potential profit.
Tax on bonds
Interest from government bonds is subject to capital gains tax (flat tax) of 19%. Exception: bonds purchased on IKE account — there you can completely avoid tax.
How can Freenance help
Freenance allows you to track the value of your government bonds as part of your investment portfolio. It automatically includes them in net worth calculations and Financial Freedom Runway, so you see the full picture of your finances.
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