Govt set to raise interest rate on savings certificates for new investors

The interim government is set to increase the interest rates against various savings certificates to upwards of 12 percent as it looks to provide some relief to the fixed income group squeezed by the elevated inflation.

At present, the interest rates provided against the four savings certificates under the Department of National Savings ranged from 11.04 percent to 11.76 percent.

The savings instruments are: the five-year Bangladesh savings certificate, the three monthly profit-bearing Sanchayapatra, the five-year family savings certificate and the five-year pensioners' savings certificate.

The government will introduce the new system for the savings certificates which will be linked to the government's treasury bond interest rates.

The new system will be effective from January 1, said a finance ministry official, adding that the official notification would come soon.

The chief adviser has approved the new system and the relevant documents have been sent to the Internal Resources Division of the finance ministry for issuing the notification.

According to the proposal, the interest rates against savings certificates will be fixed following the weighted average interest rates of the five-year and two-year treasury bonds.

The interest rates against the treasury bonds will be reviewed every six months and the savings certificates' interest rates will be re-fixed.