NRBs can now invest any amount in Wage Earner Bond

The government has lifted investment caps for non-resident Bangladeshis (NRBs) in the Wage Earner Development Bond to encourage investment by expatriate professionals and businesses.

This adjustment aligns the Wage Earner Development Bond with other diaspora bonds, such as the US Dollar Premium Bond and the US Dollar Investment Bond, according to a press release issued by the Internal Resources Division today.

Additionally, the directive introduces greater flexibility by allowing automatic reinvestment for multiple terms.

Under the Wage Earner Development Bond Rules, 1981 (amended on 23 May 2015), there was no limit on the amount that could be invested in the bond.

However, during the Covid-19 pandemic, the Internal Resources Division imposed an investment cap of Tk10 million (or its equivalent in foreign currency) on the Wage Earner Development Bond, US Dollar Premium Bond, and US Dollar Investment Bond.

While the cap on the US Dollar Premium Bond and the US Dollar Investment Bond was lifted in 2022, allowing unlimited investments, the restriction remained in place for the Wage Earner Development Bond.

Under the new guidelines, NRB mariners, pilots, and cabin crew members employed by foreign-owned shipping and airline companies are also now eligible to invest in the Wage Earner Development Bond.

Additionally, pensioners will now have the option of receiving monthly profit payouts on Pensioner Savings Certificates, rather than the previous quarterly structure.

These changes, which take effect on 1 December 2024, include the option to reinvest in National Savings Scheme products, such as the Family Savings Certificate, Pensioner Savings Certificate, three-month profit-based Savings Certificate, Wage Earner Development Bond, US Dollar Premium Bond, and US Dollar Investment Bond.

For the five-year Bangladesh Savings Certificate and Post Office Savings Bank Term Accounts, both principal and interest will be eligible for reinvestment upon maturity.

Under the revised policy, NRBs can invest remitted funds in the Wage Earner Development Bond for an initial term, with the option to reinvest for two additional terms, enabling up to 15 years of total investment.

Similarly, the US Dollar Premium Bond and US Dollar Investment Bond allow reinvestment for up to four additional terms, also providing a total investment period of 15 years.

The Internal Resources Division believes these incentives, along with the elimination of the investment cap, will attract more foreign currency investments from expatriates, fostering sustained economic progress in Bangladesh.