From January 2026, 10% tax at source on all savings certificates is being deducted for all customers, regardless of the amount invested in savings certificates.
As a result, small investors who previously received a 5% tax at source benefit on investments up to Tk5 lakh, that benefit has been effectively withdrawn.
The impact of the increase in tax at source is directly affecting the monthly income of investors. Many customers are receiving less money in January than in December from the same amount of investment.
Although the difference is not very large in terms of numbers, this reduced income is significant for those who use the profits from savings certificates to meet their daily expenses.
Dissatisfaction is growing, especially among housewives, retired officials, senior citizens and low-income investors. They allege that the decision was taken silently—without any government announcement, notification or advance notice.
National savings certificates have long been one of the safest investments for the middle class, retired and limited income people. Due to low interest rates in banks, many rely on savings certificate profits to meet their monthly expenses.
But since the decision to increase the tax at source on savings certificates came into effect without any announcement or notification at the beginning of this year, new uncertainty has been created in place of that trust.
According to sources from the National Savings Department, until now, the tax at source was 5% for investments of less than Tk5 lakh and 10% for investments of more than Tk5 lakh.
According to the new decision, now, regardless of the investment amount, 10% tax at source has been implemented for everyone.
Deputy Director (Administration and Public Relations) of the National Savings Department Md. Rezanur Rahman said: “Earlier, the tax at source was 5% for investments of less than Tk5 lakh and 10% for investments above that. Now, 10% tax at source has been fixed for all investors.”
Notably, although the government announced a reduction in the profit rate of savings certificates at the beginning of this year, it withdrew it within a few days.
As a result, the profit rate of savings certificates remains unchanged on paper and in writing. Currently, the maximum profit varies from 11.82% to 11.98% depending on the scheme.
However, in reality, the amount of money reaching investors has decreased due to additional source taxes. In other words, even though the profit rate has remained unchanged, the effective profit has decreased, especially in the case of small investors.
According to analysts, the policy of gradually discouraging savings certificates in the context of the government's revenue collection pressure and liquidity management in the banking sector is not new.
However, if the burden of that policy falls more on relatively weak investors, then questions may arise about the social and economic impact.
According to economists, savings certificates are essentially an alternative tool for social security. It was fair to have a separate benefit for small investors here. Transparency and explanation were necessary before withdrawing it.
A large portion of investors in savings certificates seek additional income opportunities beyond regular income or pension. Many of them do not want to take the risk of banks or the capital market. Those concerned believe that the sudden decision to increase tax at source without any announcement could undermine that trust.
