The government is considering another reduction in profit rates on national savings certificates, with revised returns likely to take effect from 1 January, subject to final approval by the Finance Adviser. The move, proposed by the Finance Division of the Ministry of Finance, is part of a wider effort to rein in public borrowing costs and bring state-backed savings instruments into closer alignment with prevailing market and monetary conditions.
Officials familiar with the process said that once the proposal receives formal clearance, the Internal Resources Division (IRD) will issue a circular announcing the new rates. At present, profit rates on national savings certificates range from a high of 11.98 per cent to a low of 9.72 per cent. Under the current proposal, the average return would be reduced by approximately 0.5 percentage points, continuing a gradual downward trend that began earlier this year.
Finance Adviser Salehuddin Ahmed told reporters on Monday night that the proposal had not yet reached him officially. However, he acknowledged sustained pressure from the banking sector, which has long argued that high savings certificate returns divert deposits away from banks and constrain private-sector lending. “There is demand from banks to lower these rates slightly to support credit growth in the private sector. Any decision will be taken after considering the overall economic interest,” he said.
Officials stressed that the proposed revision would maintain the existing tiered structure, under which smaller investments receive comparatively higher returns. Investments of up to Tk 750,000 would continue to earn higher profit rates, while amounts above this threshold would attract lower returns. Policymakers say this structure is intended to protect small savers, pensioners and middle-income households, while discouraging large-scale investments that increase the government’s cost of borrowing.
On 30 June, the government adopted a policy of regular reviews of savings certificate rates as part of its income and debt management framework. At that time, average rates were trimmed modestly, with a commitment to reassess them after six months. That review period expires on 31 December, creating the immediate context for the proposed adjustment.
IRD Secretary Md Abdur Rahman Khan said it was still too early to confirm the final outcome. “Whether rates will go up or down cannot be said at this stage. The issue is being examined by the Finance Division, and once we receive their recommendation, we will issue the circular accordingly,” he said.
Among the various instruments offered by the National Savings Directorate, the Family Savings Certificate remains the most popular, particularly among households seeking secure, long-term returns. Current profit rates on major savings instruments are outlined below:
| Instrument | Investment up to Tk 750,000 | Above Tk 750,000 |
|---|---|---|
| Family Savings Certificate (5 years) | 11.93% | 11.80% |
| Pensioner Savings Certificate | 11.98% | 11.80% |
| Bangladesh Savings Certificate (5 years) | 11.83% | 11.80% |
| Quarterly Profit-based Certificate | 11.82% | 11.77% |
| Post Office Time Deposit (3 years) | 11.82% | 11.77% |
These rates were above 12 per cent before 1 July, highlighting the steady easing of returns over recent months. Officials confirmed that no changes are planned for Wage Earner Development Bonds, US Dollar Premium Bonds, US Dollar Investment Bonds or ordinary Post Office Savings Bank accounts.
The banking community has welcomed the prospect of lower savings certificate yields. Abdul Hai Sarker, chairman of the Bangladesh Association of Banks (BAB), said generous government-backed returns naturally draw household savings away from banks. “If rates are reduced slightly, funds will return to the banking system, supporting private-sector lending and overall economic activity,” he said.
According to National Savings Directorate data, the government raised a net Tk 2,369 crore through savings certificate sales during the first four months of the 2025–26 fiscal year (July–October). In contrast, net borrowing in the previous fiscal year was negative, at nearly Tk 6,000 crore. As of the end of October, outstanding government liabilities from savings certificates stood at Tk 341,000 crore, underlining their continued importance—and cost—in Bangladesh’s public debt management strategy.