Govt reverses cuts in savings certificate interest rates

The government has reversed its recent decision to cut interest rates on savings certificates, reinstating the current rates for the next six months.

The Internal Resources Division (IRD) issued the notification yesterday.

As a result, investors will continue to receive interest at the same rates that were applicable from July 1 to December 31, 2025, until June 30 this year.

Last week, the government issued a gazette notification announcing lower interest rates on all types of savings certificates for the January-June 2026 period.

The move drew criticism as it affected middle- and lower-income investors who rely on savings certificates for financial security, prompting the authorities to reverse the decision.

Interest rates on savings certificates vary based on the size of investment, with higher returns offered on investments of up to Tk 7.5 lakh. Returns decline for investments exceeding this threshold.

Among savings instruments offered by the National Savings Directorate, the Family Savings Certificate remains the most popular. The interest rate at maturity after five years stands at 11.93 percent for investments below Tk 7.5 lakh, while investments above that amount earn 11.80 percent. Both rates remain unchanged.

For Pensioners' Savings Certificates, the interest rate at maturity is 11.98 percent for investments below Tk 7.5 lakh and 11.80 percent for larger investments.

The five-year Bangladesh Savings Certificate offers an interest rate of 11.83 percent for investments below Tk 7.5 lakh and 11.80 percent for investments above the threshold, both of which will remain in force.

Meanwhile, the three-monthly profit-based savings certificate offers returns of 11.82 percent for investments below Tk 7.5 lakh and 11.77 percent for higher investments.