Savings certificate profit rates cut again
The profit rates on savings certificates have been reduced once again after an interval of six months. The Internal Resources Division (IRD) has announced new profit rates for savings certificates for the next six months. The new rates came into effect today, 1 January.
Under the revised rates, the maximum profit rate on savings certificates will be 10.59 per cent, while the minimum rate will be 8.74 per cent. The rates had also been reduced last July. Now, six months later, they have been cut again. The profit rates on savings certificates are reviewed every six months.
It can be seen that profit rates are relatively higher for smaller investments, while larger investments earn lower rates. In this regard, a threshold has been set at Tk 750,000. Investments of this amount or less will attract higher profit rates, while investments exceeding Tk 750,000 will earn lower rates. As part of its income and debt management strategy, the government regularly sets profit rates on savings certificates.
As a result, overall pressure on the middle class has increased further from the beginning of the new year. Those whose household expenses rely heavily on income from savings certificate profits will come under even greater strain.
New profit rates
Among all the types of savings certificates issued under the Department of National Savings, the most popular is the Family Savings Certificate. Previously, for investments of less than Tk 750,000, the profit rate at maturity after five years was 11.93 per cent, but this has now been reduced to 10.54 per cent. For investments exceeding Tk 750,000, the profit rate was 11.80 per cent, which has been reduced to 10.41 per cent.
In the case of the Pensioner Savings Certificate, the profit rate at maturity at the end of the fifth year for investments of less than Tk 750,000 was 11.98 per cent which has now been set at 10.59 per cent. For investments exceeding Tk 750,000, the profit rate was 11.80 per cent and from now on it will be 10.41 per cent.
The profit rate on the five-year Bangladesh Savings Certificate has also been reduced. For investments of less than Tk 750,000, the profit rate at maturity was 11.83 per cent, which will now be 10.44 per cent. For investments exceeding Tk 750,000, the profit rate was 11.80 per cent, and will now be 10.41 per cent.
In addition, profits will also decrease for investments in quarterly profit-bearing savings certificates. For investments of less than Tk 750,000, the profit rate at maturity was 11.82 per cent, which will now be 10.48 per cent. For investments exceeding Tk 750,000, the rate was 11.77 per cent but now it will be 10.43 per cent.
Moreover, for all national savings schemes issued before 1 July 2025, the profit rate applicable at the time of issuance will continue to apply for the original tenure. However, in the case of reinvestment, the profit rate applicable on the date of reinvestment will be applied. The profit rates will be revised again after six months.
Meanwhile, the primary customers of savings certificates are ordinary middle-class families in the country. In times of difficulty, they encash savings certificates to cope. In addition, a portion of monthly household expenses is met from the profit earned on savings certificates.
Due to rising prices of goods, the country has been experiencing high inflation for more than two years. Although inflation has eased slightly in recent months, it remains in the 8-9 per cent range. As a result, overall pressure on the middle class has increased further from the beginning of the new year. Those whose household expenses rely heavily on income from savings certificate profits will come under even greater strain.