Govt to cut savings certificate profit rates from January

National savings certificates_11zon

The government is set to slash profit rates on national savings certificates (Sanchaypatra) from January 1, 2026, marking the second reduction in six months, following calls from the banking sector.

The Finance Division of the Ministry of Finance has drafted a proposal outlining the new profit rates, which has been submitted to Finance Adviser Dr. Salehuddin Ahmed for approval, officials said.

Once endorsed, they said, the Internal Resources Division (IRD) will issue an official circular to implement the changes.

Finance Adviser Salehuddin Ahmed said that he has yet to officially receive the proposal, bankers have been advocating for a rate cut.

"There is a demand from bankers to reduce the profit rates of savings certificates to support credit growth in the private sector," he said, adding that the final decision will consider the overall national interest.

This move follows a decision made on June 30, where the government resolved to review and adjust profit rates every six months as part of its income and debt management strategy.

According to sources within the Finance Division, the new proposal suggests an average reduction by 0.5 percent across various savings schemes. The tiered interest structure will remain. It means-

Small investments-For investments up to Tk7.5 lakh, profit rates will remain relatively higher.

Large investments- For investments exceeding Tk7.5 lakh, the profit rates will be significantly lower.

Currently, the maximum profit rate stands at 11.98 percent, while the minimum is 9.72 percent.

The family savings certificate, the most popular scheme among citizens, currently offers 11.93 percent for investments below Tk 7.5 lakh. This is expected to see a slight dip. Other schemes affected include:

Pensioner savings certificate: currently 11.98 percent (below 7.5 lakh).

Bangladesh savings certificate (5-year): currently 11.83 percent (below 7.5 lakh).

Three-Monthly Profit-Based Certificate: currently 11.82 percent (below 7.5 lakh).

No changes are expected for the Wage Earner Development Bond, US Dollar Premium Bond, US Dollar Investment Bond, or Post Office Savings Bank ordinary accounts.

Abdul Hai Sarker, Chairman of the Bangladesh Association of Banks (BAB), welcomed the cut-down move.

He said high interest rates on government savings certificates often lure deposits away from private banks. "If these rates decrease, funds will move toward banks, which will help facilitate private sector loans."

Government data shows a shift in borrowing trends. In the first four months of the current 2025–26 fiscal year (July–October), the government borrowed Tk2,369 crore through savings certificates.

As of the end of October, the government's total outstanding debt in savings certificates stood at Tk3.41 lakh crore. - UNB