The government has curtailed the interest rate on all types of savings certificates for investments of over Tk 1.5 million in a bid to rein in the blistering sale of the saving tools.
Internal Resources Division (IRD) of the finance ministry issued a circular on Tuesday, cutting the interest rates by up to 2 percentage points on the sale of new certificates. However, the rates on savings certificates purchased previously will remain unchanged.
Net sale of savings certificates almost tripled in a year to Tk 420 billion in FY2020-21 from Tk 144.28 billion a year earlier against Tk 200 billion targets set last fiscal.
Under the new rules, those who will invest more than Tk 1.5 million in five-year savings certificates will get a 10.30 per cent profit at the end of the term. If the investment is more than Tk 3 million, the profit rate will be 9.5 per cent, according to new circular.
Meanwhile, the interest rate on the three-year savings certificate has been reduced to 10 per cent for investments of more than Tk 1.5 million while those who will invest more than Tk 3 million will get 9 per cent interest at the end of the tenure.
Retirees who will invest more than Tk 1.5 million in the five-year pensioner savings certificate will get 10.75 per cent profit at the end of the term and if the investment is more than Tk 3 million, the interest rate will come down to 9.75 per cent.
The rate of interest on the investment of more than Tk 1.5 million in five-year family savings certificates has been reduced to 10.50 per cent, and for investments above Tk 3 million, the rate is 9.50 per cent.
Currently, the rate of interest on three-year savings certificates is 11.04 per cent, five-year savings certificates 11.28 per cent, five-year pensioner savings certificates 11.76 per cent and five-year family savings certificates carry 11.52 per cent interest at the end of term.
The current rate of three-year term deposits parked at post office savings bank has been kept unchanged at 11.28 per cent, but if the investment crosses Tk 1.5 million the rate will go down to 10.30 per cent and it will be 9.30 per cent for investment of over Tk 3 million.
Similarly, in the case of over Tk 1.5 million investment in wage earners’ development fund, the interest rate has been slashed to 10.27 per cent but the rate will remain unchanged at 11.20 per cent for investing amounts below the threshold.
If the investment is over Tk 3 million, the profit will be 9.33 per cent and for over Tk 5 million investment, the interest rate will be 8.40 per cent.