Banks Told to Maintain Savings Certificate Sales

Bangladesh Bank has directed all scheduled banks to continue selling government savings certificates and ensure that investors receive uninterrupted access to these popular savings instruments. The central bank has also instructed banks to respond promptly to customer complaints and strengthen oversight of savings certificate-related services at branch level.

The directive was issued on Wednesday through a circular from Bangladesh Bank’s Debt Management Department and sent to the managing directors and chief executive officers of all scheduled banks operating in the country.

The move follows a growing number of complaints from customers who alleged that some banks were either unwilling to facilitate investments in savings certificates or were discouraging potential investors through cumbersome procedures. Over recent days, such concerns have gained traction on social media platforms, prompting calls for regulatory intervention.

In its letter, Bangladesh Bank stated that complaints had been received from investors across various segments of society claiming that certain banks, despite being authorised to sell savings certificates, were creating obstacles for customers seeking to invest. According to the regulator, some institutions were reportedly discouraging clients through administrative complexities and delays.

The central bank reminded banks of their obligations under Article 3 of the Savings Certificate Rules, 1977. As designated issuing offices, scheduled banks are required to provide full cooperation to investors and ensure a satisfactory standard of service throughout the investment process.

To address the issue, Bangladesh Bank advised bank management to maintain regular supervision of savings certificate-related activities across their branch networks. The regulator stressed that investors should not face unnecessary barriers when attempting to purchase government-backed savings instruments.

Banks have also been instructed to prominently display customer complaint procedures in visible locations within branches. This measure is intended to make it easier for customers to lodge complaints and seek redress if they encounter difficulties. The circular further emphasised that all complaints should be addressed swiftly and effectively.

Savings certificates have long been regarded as one of Bangladesh’s most trusted and secure investment options. They are particularly popular among retirees, pensioners, middle-income families and risk-averse investors seeking stable returns. Backed by the government, these instruments provide a reliable source of income and capital preservation, making them an attractive alternative to many market-based investment products.

At present, the National Savings Directorate offers four categories of savings certificates:

• Family Savings Certificate
• Pensioner Savings Certificate
• Five-Year Bangladesh Savings Certificate
• Quarterly Profit-Based Savings Certificate

Among these products, the Family Savings Certificate is primarily intended for individual investors, while the remaining schemes are open to both individuals and institutions.

Interest rates on savings certificates remain relatively attractive compared with many conventional deposit products. Investors who retain their certificates until maturity currently earn returns ranging from 11.77 per cent to 11.98 per cent, depending on the scheme. These rates have helped sustain demand despite evolving conditions in the banking and financial sectors.

Government savings certificates also play a significant role in the state’s domestic borrowing programme. Funds mobilised through these instruments contribute to financing government expenditure while offering citizens a secure avenue for long-term savings. As a result, ensuring smooth access to these products remains an important policy objective.

The latest directive from Bangladesh Bank underscores the regulator’s determination to protect investors’ interests and ensure that authorised banks fulfil their responsibilities. By reinforcing service standards and requiring greater accountability, the central bank aims to restore confidence among customers and guarantee that eligible investors can continue to invest in savings certificates without unnecessary hindrance.