Interest rates on savings certificates to fall within two months
Senior Correspondent, bdnews24.com
Published: 02 Jun 2017 09:34 PM BdST Updated: 02 Jun 2017 09:34 PM BdST
The interest rates on savings certificates will be reduced in two months to maintain a logical differential with the interest rate on bank deposits, says AMA Muhith.
The finance minister made the disclosure at a press conference on the government’s new budget at the Osmani Memorial Auditorium in Dhaka on Friday.
“Changes to the interest rate on savings certificates used to be irregular,” Muhith said.
“Some years the rate was not changed at all. But we have now made a rule to review the (savings certificate) interest rate once a year going forward.
"This is because there should not be too substantial a difference between the market interest rate and the rate on savings certificates.”
The high rate of interest on savings certificates is used as an incentive Muhith said.
“But this does not mean the difference should be too high,” he added.
“The interest rates on savings certificates will remain higher than other assets. If not next month, the rate will be reviewed the month after.”
Currently; interest rates on bank deposits are between 4-6 percent. The interest rate on savings certificates is approximately between 11 and 12 percent.
The review of the savings certificate interest rate comes about two years after it was reduced by 2 percent on May 10, 2015.
“Our interest rate on savings certificates is really quite high,” Muhith said.
“Usually the difference between the savings certificate rate and the rate on bank deposits is about 1-2 percent, but currently the difference is over 4 percent!”
-
China's Q1 GDP grows at record pace as recovery speeds up
-
China’s economy is booming. Shoppers are skittish anyway
-
Pandemic drives up debt for marginalised families in Bangladesh: survey
-
Hong Kong Courts the rich as China tightens its grip
-
IMF favours global minimum corporate tax: chief economist
-
G20 to discuss uneven recovery from COVID crisis, officials say
Most Read
- Bangladeshi folk fantasy, action film star Wasim dies at 74
- Bangladesh arrests Hifazat leader Mamunul Haque, known for hate speech and aggression
- COVID patient of Mugda hospital jumps to his death
- Former JU teacher Tareque Shamsur Rehman found dead
- Bangladesh reports 101 deaths for second day in COVID flareup
- Five die in clash between police and power plant workers in Banshkhali
- Actor SM Mohsin, who graced television for decades, dies of COVID
- Banshkhali clash: 'Whiff of instigation' in protest over 'back pay, working hours' at power plant
- Kabori: The passing of a spellbinder
- Bangladesh says teary goodbye to Kabori, who enchanted cinema lovers for decades