• Wednesday, Nov 25, 2020
  • Last Update : 02:00 pm

Kamal: Govt to revisit decision about rate cut of postal savings

  • Published at 08:48 pm February 19th, 2020
Bangladesh Postal Services
Logo of Bangladesh Postal Services

Kamal was talking to reporters after the meeting of Cabinet Committee on Public Purchase at the Cabinet Division

Finance Minister AHM Mustafa Kamal has said the government would revisit the decision to cut interest rate of postal saving scheme.

His comment came on Wednesday against the backdrop of the widespread concern among savings certificate holders, mainly from pensioners and middle-class people following interest rate cut of postal savings scheme, reports UNB.

Kamal was talking to reporters after the meeting of Cabinet Committee on Public Purchase at the Cabinet Division.

The government on February 13 slashed the interest rate on savings in post office by half to facilitate implementation of the single-digit interest rate in the country’s banking sector.

Finance Ministry’s Internal Resources Division published a gazette notification with immediate effect. According to it, the interest rate on three-year fixed deposit was reduced to 6% from 11.28% on maturity.

File photo of Finance Minister AHM Mustafa Kamal | Courtesy

The interest rate for the first year and second year of the deposit has been set at 5% and 5.5% from previous 10.20% and 10.70% respectively.

Meanwhile, the interest rate on savings in ordinary accounts of post office has also been reduced to 5% from 7.5%.

The decision triggered huge criticism from depositors. Economists said it would severely affect the middle-class and pension holders.   

Mustafa Kamal, however, questioned the idea of keeping interest of saving certificates higher while bank interest rate is getting lower. 

“If we keep the interest rate of saving instrument higher, banks won’t be able to do business and none would deposit money in banks,” he said. 

“But I’ll look into the matter. I do agree that in one push, the interest rate should not be slashed to half,” he added.

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