Interest rates on savings tools slashed

The government has lowered the interest rates on savings certificates to maintain a logical difference with the interest rate on bank deposits. 

From now on, the fresh rate will be applicable only for those who buy new savings certificates, said the Internal Resources Division of the Finance Ministry in a notice on Tuesday.

However, the existing savings certificates holders will continue to enjoy previous rates until the maturity of their instruments.

The return of five-year savings schemes after the maturity will remain the same at 11.28 per cent on the investment up to Tk 15 lakh, however. 

The rate has been lowered to 10.30 per cent under the revised rates, according to the notice. But when the investment is more than Tk 30 lakh, the profit rate has been fixed at 9.30 percent.

The new interest rates will be applicable for both individuals and organisations.

The interest rates on savings schemes have been cut to adjust with the interest rates on bank deposits, said an official at the Finance Ministry.

People have been rushing to invest in the savings certificates as an alternative investment amid the pandemic due to the higher return as the interest rates on bank deposits recently declined sharply around 6 per cent.

The Bangladesh Bank recently asked the banks not to offer deposit interest rates below the inflation rate aiming to protect the people’s purchasing capacity. 

At present, the inflation rate has been hovering around 6 per cent.

In the current fiscal 2021-22, the government has set the target to borrow Tk32 crore by selling the saving certificates.    

For the three-year term savings certificate based on three-month profit, the rate of return is 11.04 percent which is reduced to 10 per cent for investments of more than Tk15 lakh. 

Those who have invested more than Tk30 lakh in these savings certificates will get profit at the end of the term at the rate of 9 percent.

The five-year term pension savings for the retirees before get the profit at the rate of 11.76 per cent which have now decreased 10.75 percent at the end of the term who will invest more than Tk15 lakh in savings certificate. And if the investment is more than 30 lakh, this rate will be 9.75 percent as per the new circular. 

At the end of the five-year term, the most sold family savings certificates rate is now 11.52 percent which was reduced to 10.50 with an investment of more than Tk15 lakh. In case of investment of more than Tk 30 lakh, this rate will be 9.50 percent.

The post office savings bank’s general profit will remain unchanged which is currently 7.59 per cent.  

Currently, the profit of post office savings certificates for three-year term is 11.28 percent which will decrease 10.30 percent with an investment of more than Tk15 lakh and 9.30 percent while the investment is more than 30 lakh.