Saving tools interest may go up in FY22

Staff Correspondent

18 May, 2021 12:00 AM printer

Saving tools interest may go up in FY22

The interest rate on national saving certificates is likely to go up in the budget for fiscal 2021-22 to benefit the middle and lower-middle income groups during the pandemic situation. 

However, the limit of investment will remain unchanged.

The government is planning to hike the interest rate on saving tools to 12-12.5 per cent, sources at the National Board of Revenue (NBR) said.

Currently, the highest profit rate for family savings certificates is 11.52 per cent. Of these, the five-year Bangladesh Savings Certificate has a profit margin of 11.28 per cent, the three-month profit-based Savings Certificate has a profit rate of 11.04 per cent, Family Savings Certificate has a profit rate of 11.52 per cent and Pensioner Savings Certificate has a profit rate of 11.76 per cent.

The government pays interest on the money invested in national savings schemes from time to time. Money invested is also refunded after maturity.

Last time interest rates on all types of savings certificates were cut by 2.0 per cent on an average in May 2015, to discourage investment in saving tools. Earlier, the profit margin on savings certificates was more than 13 per cent.

Finance Minister AHM Mustaf Kamal will place the proposed national budget of FY2021-22 on June 3 in the parliament.

On December 5, 2020, the government reduced the investment limit in national savings certificates. According to the new rules, a single investor can invest up to Tk 5 million on saving certificates. The limit for a joint investment is Tk 10 million.

In the first eight months (July-February) of the current FY 2020-21, savings certificates worth over Tk 751 billion have been sold, up from Tk 671 billion during the same period of FY 20. Prior to that, the total sales of savings certificates FY 2018-19 was over Tk 930 billion, the highest sales recorded in the history of savings certificates.