Keeping money “under the mattress” is not a good solution as it does not bring any gain and can even generate losses due to inflation. In addition, there is a risk of damage or theft of money. The National Bank of Moldova, in partnership with the Independent Think Tank “Expert-Grup”, presents the saving and investment possibilities available on the financial market of the Republic of Moldova. The information is provided as part of a set of informative materials on various financial topics, intended for consumers of all ages, IPN reports.
Bank deposits in the national currency or foreign currency (euros and US dollars) are one of the popular saving methods. Deposits can be demand or term. In the case of demand deposits, there is no keeping period, while term deposits are set for a definite period of time, which can vary from a few months to a few years.
Savings accounts are a form of deposit that combines the particularities of demand deposits and term deposits. They are a savings product with a fixed or indefinite maturity and offer more flexible conditions for accessing resources than in the case of classic term deposits.
According to the NBM, deposits are considered safe forms of savings. A guarantee mechanism applies to the saved amounts entrusted to banks. Regardless of what can happen, the money is recovered within the limit of the ceiling of 100,000 lei. Starting with 2025, this ceiling will be 200,000 lei. The level of coverage is calculated per depositor and per bank, regardless of the number of deposits held, their size or currency and regardless of which bank the money was placed with. The bank will also have the obligation to pay interest on the deposit, calculated according to the contract.
The non-banking financial market offers another savings product, namely savings deposits with Savings and Loan Associations (SLA). To check the list of eligible candidates (SLAs holding a category B license and the Central National Association of SLAs), one can access the NBM page. Unlike bank deposits, savings deposits are not guaranteed.
As for the possibilities of nesting in the capital market, although the range of financial instruments in the Republic of Moldova is not yet at the level of those in other more developed states, it still offers particular investment options. These are investments in shares – equity securities. Investors can buy newly issued shares of a company to obtain the necessary capital for investment and development, or they can buy shares that already exist and are available for trading. Stock trading can take place on the stock exchange or over-the-counter market.
One can also invest in bonds – debt securities. They are debt-type investments through which the investor grants a loan to a bond issuer (entity that borrows the money).
Corporate bonds are another investment tool. Here the issuer is a private company, which can be registered as a joint stock company or as a limited liability company.
Another instrument is the investment in municipal bonds, where the issuer is a local public authority (LPA), which borrows money to finance particular local development projects. This investment product became available on the capital market relatively recently. The municipal bonds are guaranteed by the future revenues of the LPAs. Municipal bonds are issued only through an investment company that will provide all the intermediation services in connection with the investment process.
Persons can also invest in state securities, which are financial instruments issued by the Ministry of Finance through which the state borrows for the purpose of financing public expenditure. There are several types of state securities, which differ in maturity and interest payment: treasury bills and government bonds.
According to the NBM, the legal framework on crowdfunding (Law 181/2023) came into force at the beginning of 2024. It offers a new opportunity to attract financing and, respectively, to invest. Crowdfunding is a mechanism for financing business ideas with the help of the general public, through a platform (usually online) – information system. Within this mechanism, on the one hand, there is the project developer, who seeks to obtain financing, and on the other hand, there are potential investors, willing to invest their money to finance this project. The process is intermediated by a provider authorized to offer crowdfunding services, which also ensures that the sheet with essential information about the investment is made available to potential investors. Crowdfunding can be investment-based or loan-based.
Interest income from bank deposits, savings deposits placed with SLAs, corporate or municipal bonds, state securities, crowdfunding, but also the received dividends are subject to a 6% tax that is withheld at source.
The National Financial Education Campaign is carried out with the support of USAID (MISRA).
