Decision to cut savings certificate profit rates withdrawn, previous rates retained

The government has withdrawn its decision to reduce the profit rates on savings certificates and has reinstated the previous rates.

The Finance Division requested the Internal Resources Division (IRD) to issue a gazette notification cancelling the newly announced profit rates and maintaining the earlier rates today, Sunday.

The IRD will now issue the relevant notification in this regard.

As a result, investors in savings certificates will continue to receive profits at the same rates that were in effect from 1 July to 31 December 2025 for the next six months as well.

On 28 December, through a gazette notification, the government had reduced the profit rates on all types of savings certificates for the period from 1 January to 30 June 2026.

This decision caused significant hardship for middle-class and limited-income investors. In view of the situation, the government has decided to retain the previous rates.

Profit rates are comparatively higher for smaller investments and lower for larger investments. In this case, the threshold has been set at Tk 750,000.

Investments of up to this amount attract higher profit rates, while investments exceeding Tk 750,000 receive lower rates.

As part of its income and debt management strategy, the government regularly determines profit rates on savings certificates.

Among all types of savings certificates issued under the National Savings Directorate, the most popular is the Family Savings Certificate.

Until now, for investments of less than Tk 750,000, the profit rate upon completion of the five-year term stood at 11.93 per cent; this rate has been retained. For investments exceeding Tk 750,000, the profit rate was 11.80 per cent, which also remains unchanged.

For the Pensioners’ Savings Certificate, the profit rate for investments of less than Tk 750,000 at the end of the fifth year, upon maturity, was 11.98 per cent; this rate has also been retained. For investments exceeding Tk 750,000, the profit rate remains unchanged at 11.80 per cent.

For the five-year Bangladesh Savings Certificate, the profit rate upon maturity for investments of less than Tk 750,000 was 11.83 per cent; this rate will remain in effect for the next six months. For investments exceeding Tk 750,000, the profit rate was 11.80 per cent, which has also been retained.

In addition, for the three-monthly profit-bearing savings certificates, the profit rate upon maturity is 11.82 per cent for investments of less than Tk 750,000, while for investments exceeding Tk 750,000, the rate stands at 11.77 per cent.

Savings certificate investors are primarily drawn from the country’s ordinary middle-class households. In times of financial distress, families often encash savings certificates to manage emergencies.

Moreover, a portion of monthly household expenditure for many families is met from the profit earned on these certificates.

Due to rising commodity prices, the country has been experiencing high inflation for more than two years. Although inflation has eased somewhat in recent months, it remains within the range of 8 to 9 per cent.

Profit rates are reviewed every six months. As the decision to reduce the profit rates has been withdrawn, savings certificate profit rates will remain unchanged for nearly a year.