New savings rates: Who benefits most?
The government has initiated steps to increase the profit rates on savings programmes under the National Savings Directorate. Depending on the scheme, the profit rates will rise from the current 9.35–11.76% to 12.25–12.55%.
However, not all investors will benefit from these new rates. The increased rates will only apply to investments made on or after the date the new rates take effect. Existing investments will continue to earn returns based on the previous rates.
Proposed changes and implementation
A proposal to increase the profit rates, prepared by the Finance Department, has been approved by Chief Adviser Dr. Muhammad Yunus. The recommendation suggests implementing the new rates from January 1, though final confirmation is pending approval by the Secretary and Advisor.
A notification is expected soon, with the Internal Resources Division (IRD) working to finalise the rates.
Profit rates by scheme and investor tier
Family Savings Certificate
Current Rates: 9.5% (Year 1) to 11.52% (Year 5).
Proposed Rates:
≤7.5 lakh taka: 12.50%.
>7.5 lakh taka: 12.37%.
Example:
Previous Return: Tk 11,520 per year on Tk 1 lakh.
New Return: Tk 12,500 (≤7.5 lakh) or Tk 12,370 (>7.5 lakh).
Five-Year Bangladesh Savings Certificate
Current Rates: 9.35% (Year 1) to 11.28% (Year 5).
Proposed Rates:
≤7.5 lakh taka: 12.40%.
>7.5 lakh taka: 12.37%.
Example:
Previous Return: Tk 11,280 per year on Tk 1 lakh.
New Return: Tk 12,400 (≤7.5 lakh) or Tk 12,370 (>7.5 lakh).
Quarterly Profit-Based Savings Certificate
Current Rates: 10% (Year 1) to 11.04% (Year 3).
Proposed Rates:
≤7.5 lakh taka: 12.30%.
>7.5 lakh taka: 12.25%.
Example:
Previous Return: Tk 11,040 per year on Tk 1 lakh.
New Return: Tk 12,300 (≤7.5 lakh) or Tk 12,250 (>7.5 lakh).
Pensioner Savings Certificate
Current Rates: 9.70% (Year 1) to 11.76% (Year 5).
Proposed Rates:
≤7.5 lakh taka: 12.55%.
>7.5 lakh taka: 12.37%.
Example:
Previous Return: Tk 11,760 per year on Tk 1 lakh.
New Return: Tk 12,550 (≤7.5 lakh) or Tk 12,370 (>7.5 lakh).
Post Office Fixed Deposit
Current Rates: 10.20% (Year 1) to 11.28% (Year 3).
Proposed Rates:
≤7.5 lakh taka: 12.30%.
>7.5 lakh taka: 12.25%.
Example:
Previous Return: Tk 11,280 per year on Tk 1 lakh.
New Return: Tk 12,300 (≤7.5 lakh) or Tk 12,250 (>7.5 lakh).
Tax implications
Currently, tax is deducted at source at 5% for investments up to Tk 5 lakh and 10% for higher amounts. The new proposal does not clarify whether these rates will change.
Investment limits
The investment cap remains unchanged:
Single Name: Tk 50 lakh.
Joint Name: Tk 1 crore.
Key takeaways
The profit rates will increase by approximately 1% across schemes.
Only new investments after the effective date will benefit from the revised rates.
Existing investments will continue at the previous rates, ensuring no retroactive changes.
The move is aimed at encouraging savings while maintaining a balance between investor returns and fiscal sustainability.