Government suspends plan to reduce interest on savings certificates

Investors will earn previous returns for January–June, officials say

The government has withdrawn its decision to cut interest rates on some national savings certificates.

As a result, investors will receive the same returns as before for the first six months of this year, January through June, the Internal Resources Division Secretary Abdur Rahman Khan said on Sunday.

“It appears the previous rates have been maintained in the official notification. If not, it will happen shortly,” he added.

The Department of National Savings under the Internal Resources Division (IRD), however, has yet to announce the suspension of the returns ceiling cut.

Earlier, it said the reduced interest rates -- lowered in several categories -- would be effective from the first day of the year.

The finance ministry opted to suspend the previous changes in response to the government's decision.

At the moment, the IRD determines the interest rates for savings certificates every six months.

According to the notification issued on Dec 30, for investments in savings certificates up to Tk 750,000 or less until next June, the maximum profit was set at 10.59 percent, while the minimum was at 8.74 percent.

In July 2025, the profit rates for such savings certificates ranged from 8.74 percent to 11.98 percent.

Per the latest decision, a five-year investment of up to Tk 750,000 will continue to receive an 11.98 percent interest rate, as before.

Additionally, interest rates vary based on the investment tenure.

For family savings certificates, the maximum return had been set at 10.54 percent, compared with 11.93 percent in the July cycle.

For investments exceeding Tk 750,000, the interest rate had been reduced to 10.41 percent from 11.80 percent earlier.

Under the latest decision, interest will now be paid at the July rate.

According to Sunday’s decision, the interest rate on five-year national savings certificates will remain unchanged at 11.83 percent for investments of less than Tk 750,000.

For investments above Tk 750,000, the rate will be 11.80 percent.

For profit-based savings certificates with returns payable every three months, the interest rate will be 11.82 percent for investments below Tk 750,000, and 11.77 percent for investments above that amount.

For post office savings certificates with a three-year term, the interest rate will be 11.82 percent for investments of Tk 750,000, and 11.77 percent for investments exceeding that amount.

Interest rates on bonds for expatriates and other investment instruments will also remain unchanged.

Even if rates are revised, however, the interest rate applicable at the time of purchase remains in force until the maturity of the scheme.

A single or joint investment of up to Tk 750,000 in savings certificates qualifies for one category of interest rate.

For investments exceeding this amount, the government offers comparatively lower rates. Interest rates also vary depending on the duration of the investment.

Under a single scheme, investments can be made for different tenures ranging from a year to five years.

Among savings schemes, family savings certificates account for the highest sales.