Staff Reporter :
The government has reduced interest rates on key national savings certificates by up to 57 basis points, effective from 1 July – a move that may increase pressure on middle-income earners and pensioners who rely on them for income.
The Ministry of Finance issued a circular on Monday announcing the new rates for four key savings instruments, namely the family savings scheme.
According to the notification, the five-year Bangladesh savings certificate will now yield 11.83 percent for investments up to Tk 7.5 lakh, down from the previous 12.37 percent.
The interest rate for the three-month profit-bearing savings scheme at maturity will be 11.82 percent, compared to 12.30 percent previously.
The family savings certificate sees a cut to 11.93 percent from 12.50 percent, while the government will now offer 11.98 percent interest on the pensioner savings certificate, down from 12.55 percent earlier.
The profit rates will be applicable based on the investment threshold of Tk 7.5 lakh, considering the total amount invested across one or more savings schemes, including past investments.
The Post Office Savings Bank Term Account will now carry an interest rate of 11.82per cent for investments up to Tk7.5 lakh and 11.77per cent for higher amounts, payable at maturity after three years. Previously, the rates were 12.30per cent and 12.25per cent , respectively.
These adjustments come as the government prepares to finance a portion of its Tk 1.26 lakh crore budget deficit for the 2025-26 fiscal year from domestic sources, representing 2.0 percent of the GDP. Of this, the government aims to raise Tk 12500 crore from savings certificates.
The move follows a challenging period for the government’s borrowing from NSCs.
Over the last 10 months of the 2024-25 fiscal year, the government had to repay more than it borrowed from savings certificates, incurring net interest payments of Tk 7431 crore.
The circular also states that interest rates for four other instruments under the National Savings Scheme – Wage Earner Development Bond, US Dollar Premium Bond, US Dollar Investment Bond, and general accounts under the Post Office Savings Bank, will remain unchanged.
The government routinely revises the interest rates of savings certificates as part of its fiscal and debt management strategy. However, this comes as a blow to middle-class families and pensioners who rely on savings income, especially following the 2025-26 budget, which did not raise the tax-free income ceiling.
