Interest rates on post office saving certificates (Dakghar Shanchaya Patra) to be halved in order to discourage investment in those instruments. Interest on the three-year savings certificate is currently 6 per cent, which had so long been for 11.28 per cent.
In a circular released by the finance ministry on Thursday, the profits of those investments in these savings certificate will down go down by half. The new interest rate has come into effect from Thursday. This reduced interest rate does not apply to other savings instruments.
According to the new circular, the irate for one year certificate has been set at 5 per cent, which was previously 10.20 per cent. For two years it was 5.50 per cent, previously it was 10.70 per cent. And for three years the interest is now fixed at 6 per cent instead of the rate of 11.28.
According to the National Savings Department, net investment in the post office savings certificates in 2018-19 was about Tk 8000 crore. Of this, Tk 7500 crore was invested in the three-year term certificates.
The government had been taken various measures to discourage investment in savings certificates. Tax at source was increased this year from 5 per cent to 10 per cent.