Returns on Savings Certificates may be slightly reduced from 1 January

After six months, the interest rates on the savings certificates, Sanchoy Patra, are set to be reduced once again. For the next six-month period starting 1 January, the Finance Division of the Ministry of Finance has prepared a proposal to fix new rates. The division recently submitted a summary of the proposal to Finance Advisor Salehuddin Ahmed’s office for approval.

Once the finance advisor gives his approval, the Finance Division will forward it to the Internal Resources Division (IRD) of the Ministry of Finance, which will then issue a circular. This was learned yesterday, Sunday, from Finance Division sources.

Finance Advisor Salehuddin Ahmed told Prothom Alo Sunday night, “The proposal has not yet reached me. However, from the bankers’ side there is a demand to slightly reduce the returns on savings certificates in the interest of private-sector credit growth. We will take a decision considering the overall interest.”

At present, the highest return on savings certificates is 11.98 per cent and the lowest is 9.72 per cent. Under the new proposal, these rates may be reduced by an average of 0.5 percentage points. However, for smaller investments the return rate will remain comparatively higher, similar to the current structure, while larger investments will earn lower returns. Investments of Tk 750,000 or less will receive higher returns, while investments above Tk 750,000 will receive lower returns.

On 30 June, the government decided to regularly fix the returns on savings certificates as part of its revenue and debt management strategy. At that time, after slightly reducing the average return rate, it was announced that the rates would be reviewed again after six months. That six-month period will be completed on 31 December.

IRD Secretary Md. Abdur Rahman Khan told Prothom Alo yesterday, “I cannot say whether the return rates will go up or down. The entire matter is now being handled by the Finance Division. Once we receive its recommendation, we will issue the circular.”

Among all types of savings certificates under the National Savings Directorate, the Family Savings Certificate is the most popular. For this certificate, the return rate upon maturity of the five-year term is 11.93 per cent for investments below Tk 750,000, and 11.80 per cent for investments above Tk 750,000. Before 1 July, these rates were above 12 per cent.

Currently, for the Pensioner Savings Certificate, the return rate upon maturity is 11.98 per cent for investments below Tk 750,000 and 11.80 per cent for investments above that amount. For the five-year Bangladesh Savings Certificate, the return rate upon maturity is 11.83 per cent for investments below Tk 750,000 and 11.80 per cent for investments above Tk 750,000. For the quarterly profit-based savings certificate, the return rate upon maturity is 11.82 per cent for investments below Tk 750,000 and 11.77 per cent for investments above that amount.

In addition, for time-deposit accounts at the Post Office Savings Bank, the return rate upon completion of a three-year term is 11.82 per cent for investments below Tk 750,000 and 11.77 per cent for investments above Tk 750,000. It has been learned that there will be no change in the return rates for Wage Earners Development Bonds, US Dollar Premium Bonds, US Dollar Investment Bonds, and Post Office Savings Bank general accounts.

Meanwhile, Abdul Hai Sarkar, chairman of the Bangladesh Association of Banks (BAB), the organisation of private bank sponsors, said that when returns on savings certificates are high, savings naturally flow into government funds. If the rates are reduced slightly, those funds will move to banks, which would help boost private-sector credit growth. However, given the country’s current overall situation, demand for loans is already low. Inability to lend to the private sector also becomes a kind of burden for the banking sector.

Sources at the National Savings Directorate said that in the first four months of the current 2025–26 fiscal year (July–October), the government took net borrowing of Tk 2,369 crore from savings certificate sales. In the 2024–25 fiscal year, net borrowing was negative by about Tk 6,000 crore. As of the end of last October, the government’s outstanding debt from savings certificates stood at Tk 341,000 crore.