A J$100,000 minimum puts Bank of Jamaica certificates of deposit within reach of more investors—but understanding the auction, the return and when you may need your money is essential.
Jamaicans interested in Bank of Jamaica certificates of deposit can participate through an authorised primary dealer, with a minimum application of J$100,000 for the short-term issue discussed on Taking Stock.
Crystal Hall, a trader at JMMB, explained the process during the programme’s October 27 episode, outlining how BOJ CDs differ from longer-term Government of Jamaica securities and why investors need to look beyond the headline interest rate.
What the BOJ CD offered
Hall highlighted the auction scheduled for October 28, 2026. The BOJ term sheet specified an offer of J$28 billion, settlement on October 30 and maturity on November 27—a 28-day tenor despite the instrument’s “30-day” description.
The fixed coupon was 6.25 per cent per annum, with interest payable at maturity and subject to withholding tax. The issue price is determined through competitive bidding, so coupon and investment yield are not necessarily the same.
BOJ and government securities serve different purposes
BOJ CDs are central-bank instruments used in managing liquidity and implementing monetary policy. Government of Jamaica Treasury bills and bonds are government borrowing instruments.
Hall contrasted the short tenor of the weekly BOJ offering with GOJ instruments that can run for years. She noted that longer-term securities may make interest payments quarterly or semi-annually, depending on their individual terms.
She also cautioned that the Government’s published issuance calendar is an indication of planned activity. The bonds actually offered or reopened can change with financing needs, market liquidity and investor demand.
How to submit a bid
The starting point is an account with an investment institution authorised to handle the transaction. Hall said JMMB clients also have a JamClear Central Securities Depository account arranged through their broker for the registration and custody of the securities.
Opening an investment account does not, by itself, place a bid. Hall said clients currently need to speak with an adviser and complete the relevant instruction form, identifying the instrument, amount and desired yield.
Where the appropriate email indemnity is on file, instructions can be submitted by email. The adviser verifies the instruction and that the account is funded before submitting the bid on the client’s behalf.
Hall encouraged investors to send instructions ahead of the auction, normally the previous day, to allow time for processing. An application is subject to the auction’s allocation rules.
What if you need your money early?
For longer-term GOJ securities, Hall said investors can ask their broker about a secondary-market sale. She described JMMB’s process of checking whether another client may want the instrument where a direct market trade is not immediately available.
The key question is whether the investment’s maturity fits the investor’s plans. A possible secondary-market sale should not be treated as guaranteed immediate access to cash: it depends on a buyer and the price available.
She also pointed to unit trust options for people who want exposure to government securities without directly holding a particular long-dated bond. A fund has its own terms, risks and redemption arrangements, which investors should discuss with an adviser.
“Is this right for me?” was the first question she recommended asking. The answer depends on the investor’s goals, risk appetite, available funds and ability to wait until maturity.
Based on Crystal Hall’s discussion on Taking Stock, Episode 340, aired October 27, 2026. Watch The Analysts. Information is educational and is not a personalised investment recommendation.
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