Wage Earners Development Bond: Safe and Profitable Investment for Expatriates

Although investment opportunities within the country are limited for Bangladeshi expatriates working abroad, the Wage Earners Development Bond (also known as the Expatriate Bond) has long been a popular investment option. Similar to a fixed deposit in a bank, this bond allows investors to make a one-time investment to the government and receive their principal amount back after a specified period, along with a high return. Compared to other savings instruments, this bond offers a higher profit rate, is tax-exempt, and includes life insurance coverage against death risk.

The bond provides a simple interest rate of 12% per annum, paid semi-annually. The profit rate varies slightly depending on the investment amount: up to BDT 1.5 million earns 12%, from BDT 1.5 million to 3 million earns 11%, and from BDT 5 million to 10 million earns up to 9%. Additionally, in case of the bondholder’s death, the nominated nominee receives life insurance coverage up to BDT 2 million.

Investors can obtain loans from banks up to 75% of their investment amount, though such loans cannot be taken abroad or used as collateral for third parties. The bond has a tenure of five years and is renewable up to a maximum of 15 years. Many expatriates use it as a long-term pension plan.

Since November 2024, the government has lifted the investment ceiling on the Wage Earners Development Bond, allowing investors to invest unlimited amounts. Investment opportunities have also been opened for foreign-owned shipping and airways company employees such as mariners, pilots, and cabin crew.

To purchase the bond, investors need to provide a national ID card, passport, valid visa, proof of employment, and a savings account in Bangladesh. Businesspeople and professionals must also provide relevant certificates. Bonds can be purchased at Bangladesh Bank, exchange houses, exchange companies, and authorized dealer branches of scheduled banks.

By investing in this bond, expatriates can enjoy tax-free profits along with long-term financial security and death risk insurance. Therefore, the Wage Earners Development Bond is an excellent choice for expatriates to safely and profitably invest their hard-earned money abroad.