Do you want to keep your savings secure while earning regular profits? Then the "Three-Month Profit-Based Savings Certificate" could be an option.
Introduced nearly 28 years ago, the special feature of this savings certificate is that it can be purchased by Bangladeshi citizens from all professions and walks of life.
It also offers the opportunity to withdraw profits every three months against the investment.
Unlike the Family Savings Certificate (Poribar Sanchayapatra) and Pensioner Savings Certificate, it is not restricted to specific groups of people.
However, there are certain rules regarding investment limits, profit rates, and purchasing procedures.
These savings certificates are available in denominations of Tk1 lakh, Tk2 lakh, Tk5 lakh, and Tk10 lakh.
They can be purchased from District Savings Offices, National Savings Special Bureaus, commercial banks, and post offices.
The tenure of this certificate is three years.
For investments up to Tk7.5 lakh, the profit rate upon maturity is 11.82%.
For investments exceeding that amount, the rate is 11.77%.
Encashing the certificate before maturity yields a relatively lower profit rate.
If excess profit has already been paid out, it will be adjusted against the principal amount.
An individual can invest a maximum of Tk30 lakh in a single name and Tk60 lakh in a joint name.
Additionally, various institutions and firms can purchase these savings certificates under specific conditions.
- Provident Funds: Opportunity to invest up to 50% of the total balance, subject to a maximum limit of Tk50 crore.
- Firms: The maximum investment limit for firms is Tk2 crore.
- Special Institutions: Organizations established to support autistic individuals, orphanages, child welfare homes, and registered shelters for the elderly can invest up to Tk5 crore.
Eligibility
Bangladeshi citizens of all classes and professions can purchase these savings certificates.
In addition, under specific conditions, recognized provident funds, agricultural and farm-based income-generating institutions, organizations supporting autistic individuals, and registered shelters for distressed orphans and the elderly are eligible to invest.
Tax is deducted at source (TDS) from the profits of the savings certificate.
A tax of 10% is deducted if the investor has a Taxpayer Identification Number (TIN), and 15% if they do not have a TIN.
However, this withheld tax is no longer a final tax liability. During the submission of income tax returns, there is an opportunity to adjust the tax deducted at source according to the rules.
One of the main advantages of this savings certificate is the opportunity to collect profits every three months.
Additionally, nominees can be appointed. In the event of the purchaser’s death, the nominee can either encash the certificate to withdraw the funds or continue collecting profits every three months until maturity.
Furthermore, investors can utilize the automatic reinvestment facility by contacting the issuing office before maturity.
