BM Desk: Interest rates on savings certificates are decreasing. The government is re-fixing this rate in all types of savings certificate schemes, which will be effective from July 1. According to the type, in the first phase, the interest rate has been reduced from 12.55 percent to 11.82 percent for investors below 7.5 lakh taka. For investors above 7.5 lakh taka, the rate has been reduced from 12.37 percent to 11.77 percent.
The Treasury and Credit Division of the Ministry of Finance has approved this and the Finance Department has requested the Internal Resources Department (IRD) to issue an order.
Earlier, in January, the interest rate on savings certificates was increased from 12.25 percent to 12.55 percent, which expired on June 30. Although it was increased in the first phase, the interim government reduced this rate in the second phase.
One of the conditions that the International Monetary Fund (IMF) originally gave to Bangladesh in return for a loan of 4.7 billion taka was to reduce the government’s debt from savings certificates and make its interest rate market-based. The interest rate on savings certificates is determined based on the six-month average Treasury bill interest rate, which means that if the Treasury bill interest rate increases, the interest rate on savings certificates will increase, and if it decreases, the interest rate will decrease.
Interest rates for savings certificates are on the decline. The government is adjusting this rate across all savings certificate schemes, effective from July 1. In the initial phase, the interest rate for investors with amounts below 7.5 lakh taka has been lowered from 12.55 percent to 11.82 percent. For those investing above 7.5 lakh taka, the rate has decreased from 12.37 percent to 11.77 percent.
The Treasury and Credit Division of the Ministry of Finance has sanctioned this change, and the Finance Department has instructed the Internal Resources Department (IRD) to issue the necessary order.
Previously, in January, the interest rate on savings certificates was raised from 12.25 percent to 12.55 percent, a rate that was set to expire on June 30. Although there was an increase in the first phase, the interim government has opted to reduce this rate in the second phase.
One of the stipulations set by the International Monetary Fund (IMF) for Bangladesh in exchange for a loan of 4.7 billion taka was to lower the government’s debt from savings certificates and to establish a market-based interest rate. The interest rate on savings certificates is linked to the six-month average Treasury bill interest rate, indicating that an increase in the Treasury bill interest rate will lead to a rise in the savings certificate interest rate, while a decrease will result in a lower interest rate.
