Sales of saving tools slump for yield cuts

The net sales of national savings certificates (NSC) fell by 51.43 per cent in the first eleven months of the just-concluded fiscal year (July to May) thanks to the yield cuts and strict regulations.

Net sales of savings instruments fell by Tk19228.54 crore year-on-year to Tk18157.44 crore during the period (July-May) from Tk37, 385.98 crore in the same period of the FY21, as per the latest data from the Bangladesh Bank.

The sales of saving instruments dropped drastically owing to the yield cuts and tightened rules and regulations relating to investment in saving certificates, as per the industry insiders.

Up to 2.0 per cent of yields were slashed on almost all savings schemes in September of last year in the face of dissatisfaction of the buyers who have little or no alternative choice.

On the other hand, in the FY2019-20 budget, the government imposed a five per cent tax at source on the interest income from NSCs worth up to Tk5, 00000. It also levied a 10 per cent tax at source for investment in schemes above Tk5, 00000.