Expense on Post Office Savings Scheme again pulled down

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Expense on Post Office Savings Scheme again pulled down

The government again took U-turn to Post Office Savings Scheme as from now on an individual can invest maximum Tk 10 lakh instead of Tk 30 lakh and in joint account it is Tk 20 lakh instead of existing Tk 60 lakh.

The Internal Resources Department of the Ministry of Finance on Thursday issued a notice signed on May 20. The notification said the order would be effective from the day it is issued.

“The government has to incur huge loss for the difference in interest rate as n bank deposits is 6 percent while the interest rate on post office savings schemes or savings certificates is 11.28 percent,” a IRD official said preferring anonymity.

As the expenditure is ballooning over the extra burden on health and relief sectors for Covid-19 and Amphan Cyclone, the government had to take this decision, the official added.

Meanwhile, the post office savings scheme has introduced a system of opening online accounts to stop black money and excess investment.

The new module of ‘National Savings Scheme Online Management System’ was inaugurated by Finance Minister AHM Mustafa Kamal on March 11, 2020.

The government On February 13, this year issued a notification to reduce the interest rate of the post office savings scheme by almost half.

However, the reduction in interest rates on this savings scheme was widely criticised inside, outside and through social media within a month. In the face of criticism, the finance minister promised to reconsider the interest rate issue.

According to the revised circular, the interest rate on general accounts of the post office savings scheme will be 7.5 percent. Besides, the interest rate of the three-year post office savings scheme will be 11.28 percent. In case of redemption before maturity, the interest for the first year will be 10.20 percent and 10.70 percent in the second year.

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