The interest rates for savings schemes operated under the National Savings Directorate are set to increase.
Depending on the type of savings certificate, the rates will rise to between 12.25% and 12.55%.
Finance Division of the Ministry of Finance requested the Internal Resources Division (IRD) to issue an order determining the increased rates on Wednesday (8 January).
Although the new rates were supposed to be effective from 1 January, it has already been eight days since, and it may take several more days for the IRD's notification.
Finance Division stated in a letter that the proposal prepared by the Finance Division had been approved by the chief adviser of the interim government, Professor Muhammad Yunus. T
he recommendation came from the Cash and Debt Management Committee (CDMC), headed by the finance secretary, and was supported by the Treasury and Debt Management Division of the Finance Division.
National Savings Directorate currently operates nine savings schemes, including five-year Bangladesh Savings Certificates, profit-based savings certificates payable every three months, pensioners' savings certificates, and family savings certificates.
Additionally, there are general and term accounts under the Post Office Savings Bank.
The letter further specified that the interest rates for savings certificates would be determined based on the average interest rates of five-year and two-year Treasury Bonds.
To establish the new rates, the latest six auctions of these two types of Treasury Bonds must be considered.
Finance Division has already calculated the average interest rate of six-month bonds, which stands between 12.25% and 12.37%.
Analysis shows that the interest rate for any savings certificate will not fall below 12%.
The lowest return, 12.25%, will be from the Post Office Savings Bank, while the highest return, 12.55%, will be from the pensioners' savings certificates.
The letter mentioned that the new rates would apply from January to June.
After six months, new rates will be set for the period from July to December.
The revised rates will be applicable to new investors, while those who invested before 1 January will continue to receive returns at the previous rates.
Besides the interest rate change, the letter also suggested modifications in the investment thresholds.
Under the existing rules, five-year Bangladesh Savings Certificates offer a return of 11.28% upon maturity.
For investors with more than 1.5 million Taka, the rate is 10.30%, and for those with over 3 million Taka, the rate is 9.5%.
The new system proposes two tiers of investment - below Tk750,000 and above it.
For instance, in the five-year Bangladesh Savings Certificates, investors with under Tk750,000 will receive 12.40%, while those with higher investments will get slightly less, at 12.37%.
Similarly, there will be two rates for other schemes as well.
Pensioners' savings certificates will continue to offer the most attractive rates, with those investing below Tk750,000 receiving 12.55%, and those above this amount receiving 12.37%.
However, the interest rate will decrease if the certificates are encashed before maturity.
