Govt cuts interest rates on savings certificates

Staff Correspondent: The government yesterdayreduced the interest rates on all types of savings certificates.
Under the new rules, those who have invested more than Tk15 lakh in five-year savings certificates, will get a 10.30% profit at the end of the term.
If the investment is more than Tk30 lakh, the profit rate will be 9.5%, said a notice from the Internal Resource Division of the Bangladesh Bank.
Meanwhile, the interest rate for three-year savings certificate has been reduced to 10% for investments of more than Tk15 lakh while those who will invest more than Tk30 lakh will get 9% interest at the end of the tenure.
Retirees who will invest more than Tk15 lakh in the five-year term pensioner savings certificate will get 10.75% profit at the end of the term and if the investment is more than Tk30 lakh, this rate will be 9.75%.
The rate of interest on the investment of more than Tk15 lakh in five-year family savings certificates has been reduced to 10.50%, while for investments above Tk30 lakh, the rate is 9.50%.
Stocks up on rate cuts in savings certificatesThe revised rate will be effective only for those who will buy new savings certificates from now on, the notice said.
After the expiry of the previously bought savings certificate, the new rate will be effective if the same amount is reinvested.
This new rate of interest will apply to both individuals and organisations.
Currently, the rate of interest on three-year savings certificates is 11.04%, five-year savings certificates 11.28%, five-year pensioner savings certificates 11.76% and on five-year family savings certificates it is 11.52% at the end of term. The current rate of interest of the post office savings has been kept unchanged at 7.5%.