Revised rates begin affecting sales of savings certificates

Revised interest sales on savings certificates have begun to take its effect, as sales figures in September were reportedly 22.15% lower than August earlier this year.

According to data from the Directorate of National Savings (DNS), net savings certificates worth Tk2,825.56 crore were sold in September, which was Tk3,629 Crore in August and a drop of Tk804 crore.

On the other hand, net sales in September last year was Tk4,152.78 crore, resulting in a year-on-year drop of 32%. 

In the first quarter (July-September) of current fiscal year 2021-2022, the net sales was at Tk8,558.14 crore, which was Tk11,608.24 crore during the same quarter last year, a year-on-year fall by 26.27%.

Asked about the sudden collapse in the sale of savings certificates and its impact, a DNS official, requesting anonymity, told Dhaka Tribune: “In September, the government implemented new interest rates on savings certificates. I think the new reduced rates were behind the low sales figures.” 

As a result, the amount of government borrowing from savings certificates will also be further reduced in the coming days, he added.

According to the September circular, the new interest rates were applicable for investments over Tk15 lakh for both individual and institutional investors. 

For investments below Tk15 lakh, the investors will get the existing interest rate, which is 11.28%. 

However, the interest rate will be 10.30% instead of 11.28% for five years savings certificates over Tk15 lakh. 

If it goes above Tk30 lakh, the interest rate will be further reduced to 9%.

In the case of wage earners development bond, the new interest rate will be 10.27% instead of 11.20% if the amount crosses Tk15 lakh. 

For Tk30 lakh and above, the interest rate will be 9.33% and above Tk50 lakh, 8.4%. 

Earlier, on May 23, 2015, the government reduced the profit rate of all types of savings certificates by an average of 2%.

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