Dhaka, Bangladesh (BBN)-The Bangladesh government on Sunday slashed the yield on its five-year Sanchayapatra (savings certificates) by nearly 2.0 percentage point to ease debt burden following a surge in the demand for the same from the savers.
Under the revised interest rate, which will come into effect on the same day, the yield on five-year savings certificates came down to 11.26 per cent.
Earlier, the interest rate on the savings certificates was 13.19 per cent.
“We’ve cut the yield rate of five years Bangladesh Savings certificate to 11.26 per cent from the existing 13.19 per cent, which will come into force from today (Sunday)” Finance Minister AMA Muhith told reports after hits pre-budget meeting with parliamentary standing committees at the National Economic Council (NEC) in the capital Dhaka.
Earlier on April 14 last, the Cash and Debt Management Committee (CDMC) decided at a meeting held at the Ministry of Finance (MoF) to review the interest rates on the investment tools.
Four types of savings certificates -- Five Years Sanchayapatra, Three Monthly Sanchayapatra, Pensioner Sanchayapatra and Poribar Sanchayapatra -- are now on the money market for public subscription.
Currently, average interest rate on deposit, offered by the commercial banks, is around 8.50 per cent, while the rate for savings tools averaged 13 per cent.