There are few investment opportunities in Bangladesh for Bangladeshis working abroad. Knowing what opportunities are available is crucial as a result. Many people struggle to keep up some level of financial security after returning home. Therefore, the Wage Earners Development Bond, also known as the “Expatriate Bond,” has been a popular investment choice for foreigners for a long time.
Similar to a bank’s fixed deposit, expats make a one-time investment in this government bond and receive their money back with a profit after a predetermined amount of time. The distinction is that there is death risk insurance, the revenue is fully tax-free, and the profit rate is comparatively large.
This bond offers simple interest at a rate of 12 percent annually. The profit is disbursed every six months. For instance, if an individual invests one lakh taka, they will receive 6 thousand taka after six months, totaling 12 thousand a year. A significant benefit is that this income is exempt from withholding tax or income tax. In contrast to other savings certificates, expatriate bonds are entirely tax-free. Previously, these bonds provided compound interest; however, they now yield simple interest. The government reserves the right to adjust the interest rate periodically.
While the profit from a foreign currency investment of 15 lakh taka in bonds is set at 12 percent, the profit rate decreases to 11 percent for investments ranging from 15 lakh taka to 30 lakh taka, 10 percent for 30 lakh taka to 50 lakh taka, and 9 percent for amounts between 50 lakh taka and 1 crore.
The financial benefit provided to the nominee or designated individual of the bondholder in the event of their death before maturity is referred to as the death benefit. However, this benefit is capped at 20 lakh taka, and the bondholder must be under 55 years of age. To claim the death benefit, the nominee must submit an application within three months following the bond investor’s death. Upon the bondholder’s passing, their heirs will receive both the principal and the accrued profit upon the bond’s maturity.
Expatriate bonds serve not only as a means to generate profits but can also be utilized as collateral for bank loans if required. It is possible to secure a loan of up to 75 percent of the investment amount. However, this loan cannot be taken abroad and cannot be used as collateral for a third party.
The bond has a duration of five years. However, it can be renewed twice if desired—allowing a single investment to remain valid for up to 15 years. Many individuals also utilize it as a long-term pension scheme.
Currently, there is no cap on investments in this bond. If one wishes, several crores of taka can be invested. Although there were previous restrictions, the opportunity is now more accessible for large investors.
In November 2024, the government removed the investment limit on Wage Earners Development Bonds for expatriate Bangladeshis. Starting December 1, expatriate Bangladeshis have been permitted to purchase as many Wage Earners Development Bonds as they wish. Until now, expatriate Bangladeshis had the option to invest in US Dollar Premium Bonds and US Dollar Investment Bonds without limit. Wage Earners Development Bonds have now been included in this category.
According to the government announcement, if an individual purchases Wage Earners Development Bonds once with expatriate income for one term, they will be granted reinvestment options for two consecutive terms. This means that investment can be made for a total of 15 years across three terms.
Non-resident Bangladeshi mariners, pilots, and cabin crew working for foreign-owned shipping and aviation companies will have the chance to invest in Wage Earners Bonds.
To purchase expatriate bonds, you will need a national identity card, passport, a copy of a valid visa, proof of employment, and a savings account in Bangladesh. If you are a business owner, a trade license will be required, and for professionals, a certificate of profession is necessary.
Exchange houses, exchange businesses, scheduled banks, and Bangladesh Bank’s foreign and authorized dealer (AD) branches are the places to buy these bonds. These bonds’ profits are not subject to income tax. Once more, a loan secured by the bonds is an option. In addition, purchasing the bond does not require having a foreign currency or foreign currency (FC) account.
This bond is available for personal investment by the foreign exchange earner (wage earner). Additionally, the wage worker may purchase this bond in his nominee’s name. Wage Earners’ Development Bond investments are also available to government employees employed by Bangladeshi embassies overseas.
If you wish to invest a portion of your hard-earned money overseas in a way that is safe, tax-free, and offers extra advantages, then Wage Earners’ Development Bond may be your best choice. Not only profit, but also long-term security and family security will be guaranteed.
