BB issues notice on savings certificate interest cuts


FE Team | Published: September 26, 2021 19:43:59 | Updated: September 27, 2021 08:41:25


BB issues notice on savings certificate interest cuts

Bangladesh Bank (BB) has notified the banks about cuts in interests for people investing more than Tk 1.5 million in six types of savings certificates.

These investors will earn less from their savings than others and the profit will decline further in case of investment above Tk 3.0 million.

The move comes as part of efforts to decrease pressure on the government for borrowing from the savings instruments and to ensure bigger fund flows into the private sector as the country is still recovering from the effects of the coronavirus pandemic.

The central bank issued the notice on Sunday after the finance ministry announced the readjusted rates last week with three thresholds among nine savings schemes, cutting profits on six of them for the investors who will buy savings instruments worth over Tk 1.5 million.

The six are: 5-Year Bangladesh Sanchayapatra, 3-Monthly Profit Bearings, Family Savings Certificates, Pensioner Sanchayaptra, Post Office Savings Bank’s Fixed Deposit and Wage Earner Development Bond.

Profit rates for ordinary accounts at Post Office and US Dollar Premium Bond have remained unchanged at 7.5 per cent; it is 6.5 per cent for US Dollar Investment Bond.

The new rates, which will be applicable on new investments only, are:

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