Government prepares to reduce interest on savings certificates from January, awaiting proposal approval

Dec 22, 2025
Business

Photo: Savings Certificates (Collected)

Staff Report: PNN

The Ministry of Finance is preparing to reduce the interest rates on government savings certificates for investors. A proposal has been drafted and will come into effect once approved by the Finance Adviser, after which the Internal Resources Division (IRD) will issue an official circular.

Currently, the interest rate ranges from 9.72% to 11.98%. The new proposal suggests reducing the average rate by up to 0.5%, potentially effective from January.

The proposal prioritizes protecting small investors, offering comparatively higher rates for investments up to BDT 750,000 and slightly lower rates for higher amounts.

The National Savings Directorate reports that the Family Savings Certificate is the most popular scheme, with returns of 11.93% for investments below BDT 750,000 over five years. Returns for larger investments are 11.80%. Other schemes like Pensioner Savings Certificates and five-year Bangladesh Savings Certificates have similar rates.

Private banking stakeholders expect that reducing savings certificate rates will redirect funds into the private banking sector, supporting credit flow growth.