Profit Rates Across Different Savings Certificates

Amid the ongoing distress in the banking sector, middle-class investors increasingly view savings certificates as the safest investment option. Alongside security, these certificates also offer comparatively favourable interest rates. The National Savings Directorate currently provides four types of savings certificates: Pensioner Savings Certificates, Family Savings Certificates, Five-Year Bangladesh Savings Certificates and Three-Month Profit-Based Savings Certificates. Except for the Family Savings Certificate, individuals as well as institutions may invest in all other categories.

Among the four types, the Pensioner Savings Certificate offers the highest profit rate. For investments below Tk 7.5 lakh, the profit rate at the end of the fifth year (upon maturity) is 11.98 per cent. For investments exceeding Tk 7.5 lakh, the maturity profit rate stands at 11.80 per cent. Eligible buyers include retired government officials and employees, retired Supreme Court judges, retired members of the armed forces, and spouses or children receiving family pensions of deceased employees.

Following the Pensioner Savings Certificate, the Family Savings Certificate provides the next highest return. Only adult women are eligible to purchase it. Investments below Tk 7.5 lakh yield a maturity profit rate of 11.93 per cent, while investments above this threshold earn 11.80 per cent.

The Five-Year Bangladesh Savings Certificate offers a profit rate of 11.83 per cent for investments under Tk 7.5 lakh, and 11.80 per cent for higher investments. Meanwhile, the Three-Month Profit-Based Savings Certificate provides a profit rate of 11.82 per cent on investments below Tk 7.5 lakh, whereas investments above this amount earn 11.77 per cent.

If savings certificates are encashed before maturity, the profit earned decreases. The profit rates are reviewed every January and July, and adjustments are made when necessary.

Khaborwala/SS