Govt to cut profit rates on savings certificate from January

December 23, 2025

Profit rates on national savings certificates will reduced by an average of 0.5pc to encourage private sector lending. Popular schemes like the Family, Pensioner, and 5-year Bangladesh Savings Certificates will be affected, while certain bonds and Post Office accounts remain unchanged.

Business Report :

The government is set to reduce profit rates on national savings certificates (Sanchaypatra) from January 1, 2026, marking the second cut in six months, in response to persistent calls from the banking sector to support private credit growth and strengthen financial market liquidity.

Officials said the Finance Division of the Ministry of Finance has prepared a proposal outlining the revised rates and submitted it to Finance Adviser Dr. Salehuddin Ahmed for approval. Once endorsed, the Internal Resources Division (IRD) will issue an official circular to implement the changes.

Finance Adviser Dr. Salehuddin Ahmed noted that he has yet to officially receive the proposal but acknowledged the demands from bankers. “There is a demand from bankers to reduce the profit rates of savings certificates to support credit growth in the private sector,” he said, adding that the final decision will weigh the overall national interest and financial stability.

According to sources, the new proposal suggests an average reduction of 0.5 percent across various schemes while retaining the tiered structure. Under this system, investments up to Tk7.5 lakh will continue to enjoy relatively higher rates, while larger investments will see lower rates.

Currently, the maximum profit rate is 11.98 percent, with the popular Family Savings Certificate offering 11.93 percent for small investments. Other schemes likely to be affected include the Pensioner Savings Certificate, Bangladesh Savings Certificate (5-year), and the Three-Monthly Profit-Based Certificate.

Abdul Hai Sarker, Chairman of the Bangladesh Association of Banks (BAB), welcomed the proposed cut, saying high Sanchaypatra rates often divert deposits away from private banks, limiting the availability of funds for lending. “Reducing these rates will encourage funds to flow into banks, enabling more loans to the private sector, which will support economic activity and investment,” he noted.

Government data shows that in the first four months of FY26 (July-October), Tk2,369 crore was borrowed through savings certificates, with total outstanding debt reaching Tk3.41 lakh crore by the end of October, underscoring the popularity of Sanchaypatra among citizens. Analysts say the move is expected to balance government borrowing requirements while stimulating private sector credit.

Experts also noted that lower Sanchaypatra rates may encourage investors to diversify into equities, corporate bonds, and other financial instruments, potentially strengthening capital markets and fostering broader economic growth. By easing competition for deposits, the government aims to provide banks with greater capacity to extend loans to businesses and entrepreneurs, supporting employment, industrial expansion, and overall investment activity.

The upcoming adjustment marks a continuation of the government’s policy of reviewing and adjusting Sanchaypatra rates every six months as part of its broader debt management and fiscal strategy. Observers say careful monitoring will be necessary to ensure the changes support both public borrowing needs and the health of the banking sector, while safeguarding small investors who rely on these savings schemes for secure returns.