Bangladesh Bank issues notice on savings certificate interest cuts

Bangladesh Bank has notified the banks about cuts in interests for people investing more than Tk 1.5 million in six types of savings certificates.

These investors will earn less from their savings than others and the profit will decline further in case of investment above Tk 3 million.

Customers queue up at the principal branch of state-owned Sonali Bank in Dhaka’s Motijheel commercial area on Tuesday as the government gradually starts to ease the lockdown rules during the coronavirus crisis.

The move comes as part of efforts to decrease pressure on the government for borrowing from the savings instruments and to ensure bigger fund flows into the private sector as the country is still recovering from the effects of the coronavirus pandemic.

The central bank issued the notice on Sunday after the finance ministry announced the readjusted rates last week with three thresholds among nine savings schemes, cutting profits on six of them for the investors who will buy savings instruments worth over Tk 1.5 million.

The six are: 5-Year Bangladesh Sanchayapatra, 3-Monthly Profit Bearings, Family Savings Certificates, Pensioner Sanchayaptra, Post Office Savings Bank’s Fixed Deposit and Wage Earner Development Bond.

Profit rates for ordinary accounts at Post Office and US Dollar Premium Bond have remained unchanged at 7.5 percent; it is 6.5 percent for US Dollar Investment Bond.

The new rates, which will be applicable on new investments only, are:

 

Up to Tk 1.5m (%)

 

Over Tk 1.5m-Tk 3m (%)

 

Over Tk 3m (%)

 

Family Savings Certificates

11.52

10.5

9.5

5 Years Bangladesh Sanchayapatra

11.28

10.3

9.3

3-Monthly Profit Bearings

11.04

10

9

Fixed Deposit at Post Office

11.28

10.3

9.3

Pensioner Sanchayaptra

11.76

10.75

9.75

Wage Earner Development Bond

12

11

10

The interest will decrease further to 9 percent for more than Tk 5 million investment in Wage Earner Development Bond.