Bangladesh Bank Orders Lenders to Continue Savings Certificate Sales

Bangladesh Bank has instructed all scheduled banks across the country to continue selling government savings certificates and ensure that customers receive proper service when seeking to invest in these instruments. The central bank has also directed banks to take swift action in response to customer complaints and improve oversight of savings certificate-related operations at branch level.

The directive was issued on Wednesday through a circular from Bangladesh Bank’s Debt Management Department and sent to the managing directors and chief executive officers of all scheduled banks.

The move comes amid growing complaints from customers, many of which have surfaced on social media in recent days, alleging that some banks have been reluctant to facilitate investments in savings certificates despite being authorised to sell them. According to the complaints, customers have encountered various procedural obstacles and discouragement when attempting to purchase the government-backed instruments.

In its letter, the central bank noted that it had recently received complaints from investors at different levels claiming that certain scheduled banks, although listed as authorised sales agents, were discouraging clients from investing in savings certificates through a range of administrative practices.

Bangladesh Bank reminded lenders of their responsibilities under Article 3 of the Savings Certificate Rules, 1977. Under these provisions, banks designated as issuing offices are required to provide full support to investors seeking to purchase savings certificates and to ensure a satisfactory standard of service.

The regulator advised bank management to maintain regular supervision of savings certificate-related activities at branch level so that customers can access the products without unnecessary complications. Banks have also been instructed to prominently display complaint submission procedures in visible locations within branches, enabling customers to report service-related concerns easily. Any complaints received should be addressed promptly, the circular stated.

Savings certificates remain one of the most popular low-risk investment options in Bangladesh, particularly among retirees, middle-income households and individuals seeking stable returns. They are backed by the government and are often viewed as a secure alternative to many market-based investment products.

At present, the National Savings Directorate offers four categories of savings certificates:

1. Family Savings Certificate
2. Pensioner Savings Certificate
3. Five-Year Bangladesh Savings Certificate
4. Profit-Based Savings Certificate, which provides returns every three months

With the exception of the Family Savings Certificate, all other schemes are open to both individual and institutional investors.

Depending on the type of certificate and whether it is held until maturity, investors currently receive interest rates ranging from 11.77 per cent to 11.98 per cent. These comparatively attractive returns have helped sustain demand for the instruments despite changes in the broader financial market.

Government savings certificates are sold through both the National Savings Directorate and authorised scheduled banks, making banks a key channel for facilitating public investment in these schemes. Bangladesh Bank’s latest directive is aimed at ensuring that eligible investors continue to receive uninterrupted access to these savings products and that banks fulfil their responsibilities as authorised issuing institutions.