Govt lowers interest rates on savings instruments

The government has reduced interest rates on key national savings certificates by up to 57 basis points, effective 1 July – a move that may increase pressure on middle-income earners and pensioners who rely on them for income.

According to a circular issued by the Internal Resources Division of the Ministry of Finance yesterday (30 June), the new rates will remain in effect for the next six months.

The five-year Bangladesh Savings Certificate will now yield 11.83% for investments up to Tk7.5 lakh and 11.80% for amounts above that, payable at maturity after five years. Previously, the rates were 12.40% and 12.37%, respectively.

For the three-month profit-bearing savings scheme, the rate will be 11.82% for investments up to Tk7.5 lakh and 11.77% for higher amounts, payable at maturity after three years. Previously, the rates were 12.30% and 12.25%, respectively.

The Pensioner Savings Certificate will now carry an interest rate of 11.98% for investments up to Tk7.5 lakh and 11.80% for higher amounts, payable at maturity after five years. Previously, the rates were 12.55% and 12.37%, respectively.

The Family Savings Certificate will offer 11.93% for investments up to Tk7.5 lakh and 11.80% for amounts above that, payable at maturity after five years. Previously, the rates were 12.50% and 12.37%, respectively.

The Post Office Savings Bank Term Account will now carry an interest rate of 11.82% for investments up to Tk7.5 lakh and 11.77% for higher amounts, payable at maturity after three years. Previously, the rates were 12.30% and 12.25%, respectively.

The Bangladesh Savings Certificate, Pensioner Savings Certificate, and Family Savings Certificate have tenures ranging from one to five years, while the three-month Profit-Bearing Savings and Post Office Term Accounts offer tenures from one to three years. The rates mentioned above apply to the maximum tenure of three or five years, depending on the scheme. Shorter tenures will yield lower rates.

The finance ministry circular also states that interest rates for four other instruments under the National Savings Scheme – Wage Earner Development Bond, US Dollar Premium Bond, US Dollar Investment Bond, and general accounts under the Post Office Savings Bank – will remain unchanged.

The government routinely revises the interest rates of savings certificates as part of its fiscal and debt management strategy. However, this comes as a blow to middle-class families and pensioners who rely on savings income, especially following the 2025–26 budget, which did not raise the tax-free income ceiling.