Business, Front Page

Profit on savings certificates cut


Published : 21 Sep 2021 10:33 PM | Updated : 22 Sep 2021 08:37 PM

The government has reduced the profit rate on the National Savings Certificate schemes.

On Tuesday, the Finance Ministry's Internal Resources Department issued a notification in this regard.

According to the new rate, the profit rate in savings schemes up to Tk 15 lakh has been kept the same as before, but the rate of return has been reduced in more schemes.

The revised rate will be effective only for those who buy new savings certificates, the notification said.

In addition, the new rate of return will be effective if the previously purchased savings certificates are reinvested after expiration.

The new rate of return will apply to both individuals and organizations.

Professor Abu Ahmed, an eminent economist and professor of the Dhaka University, told Bangladesh Post, “The government has reduced the rate of interest of the National Savings Certificate Schemes which will discourage some clients to invest here.”

He said many retired people have injected money for getting more profit from here as other sectors like banks have given lower interest.

For reducing interest on Savings Certificates, some people, who run their families by managing money from the National Savings Certificate Schemes, will be more affected, he added.

Md Shamsul Alam, a retired government official, told Bangladesh Post, “I have invested 30 lakh on the National Savings Certificate Schemes. I managed my family expenses from this. I have no alternative income. I want to request the government not to reduce the rate of interest on the National Savings Certificate Schemes.”   

According to the notification, the five-year savings certificate currently yields 11.28 percent profit at the end of the term.

However, under the new rules, those who will invest more than Tk 15 lakh in these savings certificates will get a profit at the end of the term at the rate of 10.30 percent.

In addition, if one invests more than 30 lakh, the profit rate will be 9 percent.

However, the profit rate will remain the same up to Tk 15 lakh.

At the end of the term, the three-year term of the three-month profit-based savings certificate is 11.04 percent.

It has now been reduced to 10 percent for investments of more than Tk 15 lakh.

In addition, with an investment of more than Tk 30 lakh, the profit will be 9 percent at the end of the term.

However, the profit rate will remain the same up to Tk 15 lakh.

At the end of the term, the five-year term pension savings for the retirees would have yielded a profit at the rate of 11.76 percent. 

Now those who invest more than Tk 15 lakh in this savings certificate will get 10.75 percent profit at the end of the term. 

In addition, if you invest more than 30 lakh, this rate will be 9.75 percent. However, the profit rate will remain the same up to Tk 15 lakh.

At the end of the five-year term of the family savings certificate, the profit rate is currently 11.52 percent. 

However, from now on, the profit rate has been reduced to 10.50 percent by investing more than Tk 15 lakh in this savings certificate. 

In addition, in case of investment of more than Tk 30 lakh, this rate is 9 percent. Its profit rate up to Tk 15 lakh will remain the same.

There has been no change in the general profit rate of Post Office Savings Bank. The profit rate of this scheme has been kept at 7.50 percent.

At present, the three-year term profit of Post Office Savings Bank is 11.28 percent. 

However, under the new rules, the rate of return on investment of more than Tk 15 lakh will be 10.30 percent. The investment of more than 30 lakh will be 9.30 percent.

In addition, the current profit margin of Wage Earner's Development Fund is 11.20 percent. 

However, if one invests more than 15 lakh at the new rate, the profit will be 10.27 percent. 

In addition, with an investment of more than 30 lakh, the profit will be 9.33 percent. Besides, if the investment is more than 50 lakh, the profit will be available at the rate of 8.40 percent.