Saving certificate sales drop Tk1,287cr in Jan
Bankers say people are now averse to savings due to high inflation
- Tk7,964 crore worth savings certificates sold in Jan
- Tk9,251 crore paid as interest and principal in Jan
- Saving certificate sales drop Tk7,350 crore in Jul-Jan
- Bank deposit jumps by Tk13,259 crore in Dec 2023
- Investment in saving certificates may further decrease
The net sales of national saving certificates dropped 1,287 crore in the first month of this year as people opted for encashing their savings amid inflationary pressure.
According to the central bank data, savings certificates worth Tk7,964 crore were sold in January. However, Tk9,251 crore was paid as interest and principal of the certificates sold earlier.
Bankers said people are now very averse to savings due to high inflation. Instead, they are meeting family expenses by encashing their investment from saving certificates.
Keep updated, follow The Business Standard's Google news channel
Meanwhile, the deposit amount of the bank sector was Tk16.40 lakh crore in November. It increased to Tk16.54 lakh crore in December. That is, deposits in the bank sector increased Tk13,259 crore in the last month of 2023.
The interest rates of bank loans and deposits have been continuously increasing since the introduction of SMART rate, bankers said. As a result, money is entering banks from other sectors.
In this regard, Md Mezbaul Haque, executive director and spokesperson of the Bangladesh Bank, said the interest rate on bank loans has been increased to control inflation. With this, the interest rate on bank deposits has also increased.
"That is why money has started entering the bank. Now the investment in saving certificates and other sectors will decrease a lot," he added.
According to the data of the National Savings Directorate, savings certificates worth Tk49,257 crore were sold in the first seven months (July-January) of the current financial year. During the same period, the government had to pay Tk56,506 crore as interest and principal.
As such, the government did not receive any money from saving certificates in the seven months. On the contrary, an additional payment of Tk7,350 crore had to be made.
Ahsan H Mansur, executive director of the Policy Research Institute, said due to the reduction in interest rates and the imposition of various types of restrictions, the sale of saving certificates, the safest investment option of the common man, has decreased.
Besides, he noted that the government has to cover interest and principal payments from the exchequer.
