Govt lowers interest rates on savings certificates

The government has reduced interest rates on all major national savings certificates (NSCs) for the next six months, aligning them with prevailing market interest rates.

Under the revised structure, the highest return on savings instruments will now be 10.59 percent, while the lowest will be 8.74 percent, according to an announcement by the Internal Resources Division on December 30.

The new rates came into effect yesterday. However, the revised rates will apply only to new investments made after January 1, 2026. Investors who purchased savings certificates earlier will continue to receive returns at the rates applicable at the time of issuance.

This is the second reduction in interest rates within six months. Under the current policy, NSC interest rates are reviewed every six months.

Under the new structure, investors with smaller investments – up to Tk 7.5 lakh – will receive comparatively higher returns than those investing above that threshold.

Previously, the most popular instrument, the Family Savings Certificate, offered investors a return of 11.93 percent on investments of up to Tk 7.5 lakh upon maturity after five years. This rate has now been reduced to 10.54 percent.

For the same amount of investment, the Pensioner Savings Certificate offers an interest rate of 10.59 percent, down from 11.98 percent. Five-year Bangladesh Savings Certificate offers 10.44 percent, down from 11.83 percent.

The five-year Bangladesh Savings Certificate now offers 10.44 percent, down from 11.83 percent for up to Tk 7.50 lakh.

For all three above-mentioned savings instruments, investments exceeding Tk 7.5 lakh will provide a return of 10.41 percent, down from 11.80 percent.

Returns on the quarterly interest-based savings certificates have also been cut. Investors with up to Tk 7.5 lakh will now receive 10.48 percent, while those above the limit will earn 10.43 percent.

Interest rates on Wage Earner Development Bonds have also been reduced across all investment slabs, with returns now ranging from 11.20 percent for lower tiers to 8.40 percent for the highest investment bracket.