Government Lowers Savings Bond Interest Rates

The new year has begun with disappointing news for investors nationwide. On Thursday, 1 January, the Directorate of National Savings, operating under the Ministry of Finance’s Internal Resources Division, issued an official notice announcing revised interest rates for various government savings instruments.

Under the updated framework, the maximum interest rate on savings bonds has been reduced to 10.59%, while the minimum rate now stands at 8.74%. This adjustment follows the previous reduction implemented in July 2025, reflecting the government’s ongoing effort to align interest rates with current economic conditions.

A significant modification in the revised structure is that interest calculation will now depend on the size of the investment. Investments of up to BDT 750,000 will attract a relatively higher rate, whereas amounts exceeding this threshold will earn interest at a lower rate.

The table below highlights the changes for the most commonly held savings instruments:

The Ministry of Finance has clarified that savings bonds issued before 1 July 2025 will continue to accrue interest at the previous rates. The new rates will apply only to reinvestments or newly issued certificates. Authorities have also indicated that interest rates will be reviewed and adjusted every six months to reflect market conditions.

Economic analysts view the reduction as a strategic measure aimed at maintaining financial stability while balancing investor security with reasonable returns. Experts advise investors to reassess their savings strategies to optimise benefits under the revised structure.

Despite the lower short-term returns, government savings bonds remain a safe and reliable long-term investment, fully guaranteed by the state. They continue to be a preferred choice for risk-averse investors seeking secure avenues for wealth accumulation.