In the first five months of FY23, the pattern of redeeming older investments on saving certificates rather than fresh ones has persisted.
The most recent data from Bangladesh Bank show that from July to November, savers withdrew Tk36,549 crore from the savings certificates.
On the other hand, new investors purchase saving certificates worth Tk34,934 crore during this time.
Data analysis reveals that between July and November of the current fiscal year, consumers withdrew Tk1,610 crore more than was put into new savings certificates.
Officials from the central bank explained the downward trend by stating that customers withdrew money to safeguard their spending power or in quest of higher returns due to inflationary pressures.
However, economists believe that people are unable to increase their savings in order to cover their cost of living because of growing commodity prices and declining income.
Instead, many are leveraging their previous savings to cover bills.
Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh (PRI), told Dhaka Tribune that due to inflation and rising living cost, people have less money in hand. They are no longer able to save as before.
However, the government set a Tk35,000 crore borrowing target from savings certificates in FY23.
But data analysis shows that after five months of FY23 authorities had to pay Tk1,610 crore more to savers, let alone borrowing during this period.
During the corresponding period last year, the government's net borrowing from savings tools stood at Tk10,025 crore.
The amount in the first five months of FY21 was Tk19,044 crore.