THE Retirement Fund may pull out its multi-million dollar deposit in Bank of Saipan if the banking institution decides to reduce its interest rate.
Fund Administrator Karl T. Reyes told Variety yesterday that the Fund’s board of trustees has to decide whether it will continue keeping the agency’s money in the bank once it resumes operation.
“The board has to make sure that the Fund’s money is safe and is earning the best interest,” Reyes said.
He said their decision will depend on the “acceptability of Bank of Saipan’s instruments” to the other local banks and the government.
The Fund has $5.57 million deposited in Bank of Saipan. The amount is equivalent to 35 percent of the total government deposits in the bank.
Bank of Saipan offered a 3.5 to 3.75 percent monthly interest for deposits, but this could be reduced due to the bank’s problems, Reyes said.
The Fund has four accounts of time certificate deposits with Bank of Saipan, he said.
Two of these accounts will mature this month, while the remaining two accounts will reach maturity next month.
“(When the Fund made the deposits), Bank of Saipan offered the best interest,” Reyes said.
