The government is weighing a further reduction in profit rates on national savings certificates, with the revised returns likely to come into force from 1 January, subject to approval by the Finance Adviser. The proposal, prepared by the Finance Division of the Ministry of Finance, forms part of a broader strategy to manage public borrowing costs while aligning savings instruments more closely with prevailing market and monetary conditions.
Finance Division officials said that once the proposal receives formal approval, the Internal Resources Division (IRD) will issue a circular detailing the new rates. At present, profit rates on savings certificates range from a maximum of 11.98 per cent to a minimum of 9.72 per cent. Under the latest proposal, the average return would be reduced by around 0.5 percentage points, continuing a gradual downward adjustment that began earlier this year.
Finance Adviser Salehuddin Ahmed told reporters on Monday night that the proposal had not yet reached his desk. Nevertheless, he acknowledged that commercial banks have been urging the government to reduce savings certificate yields to encourage a greater flow of funds into the banking system. “There is pressure from the banking sector to lower these rates slightly to support private-sector credit growth. Any decision will be taken in consideration of the overall economic interest,” he said.
Officials emphasised that the proposed revision would preserve the existing tiered structure, under which smaller investments receive relatively higher returns. Investments of up to Tk 750,000 would continue to earn a higher profit rate, while investments exceeding this threshold would attract lower returns. This approach is designed to protect small savers, including pensioners and middle-income households, while discouraging large-scale investments that increase the government’s borrowing costs.
On 30 June, the government decided to adopt a policy of regular reviews of savings certificate rates as part of its income and debt management framework. At that time, average rates were trimmed modestly, with a commitment to reassess them after six months. That review period expires on 31 December, creating the immediate context for the proposed adjustment.
IRD Secretary Md Abdur Rahman Khan said it was premature to confirm whether the rates would ultimately be reduced. “The matter is currently under examination by the Finance Division. Once we receive their recommendation, we will issue the circular accordingly,” he said.
Among the products offered by the National Savings Directorate, the Family Savings Certificate remains the most popular, particularly among households seeking secure long-term returns. Current profit rates on major savings instruments are as follows:
| Instrument | Investment up to Tk 750,000 | Above Tk 750,000 |
|---|---|---|
| Family Savings Certificate (5 years) | 11.93% | 11.80% |
| Pensioner Savings Certificate | 11.98% | 11.80% |
| Bangladesh Savings Certificate (5 years) | 11.83% | 11.80% |
| Quarterly Profit-based Certificate | 11.82% | 11.77% |
| Post Office Time Deposit (3 years) | 11.82% | 11.77% |
These rates exceeded 12 per cent before 1 July, illustrating the steady easing trend. Officials confirmed that no changes are planned for Wage Earner Development Bonds, US Dollar Premium Bonds, US Dollar Investment Bonds or ordinary Post Office Savings Bank accounts.
The banking community has welcomed the prospect of lower savings certificate yields. Abdul Hai Sarker, chairman of the Bangladesh Association of Banks (BAB), said high returns on government instruments tend to divert household savings away from banks. “A slight reduction will encourage deposits to return to the banking system, which will support private-sector lending and economic activity,” he observed.
According to data from the National Savings Directorate, the government raised a net Tk 2,369 crore through savings certificate sales during the first four months of the 2025–26 fiscal year (July–October). By contrast, net borrowing in the previous fiscal year was negative, at nearly Tk 6,000 crore. As of the end of October, outstanding government liabilities from savings certificates stood at Tk 341,000 crore, underlining their continued importance in Bangladesh’s public debt landscape.