The Social Insurance Fund interest income of Mongolia increased by MNT 8.9 billion in August 2025. This growth stems from agreements the Fund signed with major commercial banks. Previously, the Fund earned MNT 26.1 billion in interest during May, June, and July. As a result, the total Social Insurance Fund interest income reached MNT 35 billion by the end of August. Experts predict that over the full one-year deposit term, the Fund will generate around MNT 105 billion in interest.
The General Department of Social Insurance (GDSI) carefully manages the Fund’s cash. It placed the Fund’s free balance of MNT 700 billion in four systemically important commercial banks. These deposits are structured as one-year term deposits at an annual interest rate of 15 percent. Furthermore, the GDSI reviewed all arrangements with the ad hoc Professional Committee. In addition, the Public Oversight Council under the National Council of Social Insurance monitored the process to ensure transparency and accountability.
Under the General Law on Social Insurance, the Fund may invest its free balance in approved financial instruments. These instruments must meet strict principles, including safety, efficiency, responsibility, transparency, and independence. By a recent resolution of the National Council of Social Insurance, the interest rate for deposits in commercial banks has been updated. This adjustment aligns with the Fund’s strategy to maximize returns while maintaining financial security.
Moreover, this disciplined investment approach allows the Fund to secure future payments to beneficiaries. It also strengthens the social insurance system in Mongolia by providing predictable revenue streams. Analysts emphasize that carefully placing cash in stable banks reduces risk and ensures consistent interest earnings. Consequently, the recent increase in Social Insurance Fund interest income highlights effective financial management and strategic planning.
Looking ahead, the Fund plans to continue monitoring market conditions closely. It will adjust deposit strategies when necessary to maintain strong performance. By balancing safety and profitability, the Fund aims to protect public money while generating meaningful returns. Overall, the growth in Social Insurance Fund interest income reflects both prudent management and forward-looking financial policies that benefit Mongolia’s social programs and long-term economic stability.
