Profit rates of savings certificates reduced after six months

Staff Report: PNN

For the first time in six months, the government has reduced the profit rates of savings certificates. The new rates, announced by the Internal Resources Division (IRD), became effective from Wednesday (January 1).

According to the new decision, the maximum profit rate for different types of savings certificates has been set at 10.59% and the minimum at 8.74%. Previously, rates had also been reduced in July. According to government policy, savings certificate rates are reviewed every six months.

IRD sources said that the amount of investment was considered while determining the rates. Investments under 750,000 Taka will receive slightly higher returns, while larger investments will get slightly lower rates.

For instance, under the Family Savings Certificate, an investment under 750,000 Taka will yield a 10.54% profit after five years, while larger investments will earn 10.41%. For the Pensioner Savings Certificate, the maximum rate is 10.59% for smaller investments and 10.41% for larger ones. Bangladesh Savings Certificate will offer 10.44% for smaller investments and 10.41% for larger ones. Three-month profit-based certificates have also been adjusted to 10.48% and 10.43%, respectively.

IRD stated that certificates issued before July 1, 2025, will retain the previous rates, but new investments after maturity will follow the updated rates.

Economists note that most savings certificate holders are middle-class and retired citizens. With inflation hovering around 8–9%, the reduced rates could increase financial pressure on this group in the new year.