Dhaka, Bangladesh (BBN)- The net sale of national savings certificates jumped by more than 215 per cent in the first seven months to January of the current fiscal year (FY) 2014-15 due mainly to higher interest rate on the government-approved securities, officials said.
The net sale of savings instruments rose to BDT 157.09 billion during the period under review from BDT 49.83 billion in the same period of the previous fiscal, according to official figures.
“Higher interest rates on savings instruments were encouraging the small savers to invest more in risk-free instruments,” a senior official of a leading commercial bank told BBN in Dhaka.
Currently, the average interest rate on deposits, offered by the commercial banks, is below 8.0 per cent while the rate for savings instruments is, on an average, 13 per cent, he added.
The senior banker also said the net investment in national savings certificates and bonds would increase further in the coming months if the existing sluggish business condition persists.
The government in the current budget set a net borrowing target of BDT 90.56 billion from national savings schemes to partly finance its budget deficit.
BBN/SSR/AD-27Feb15-9:52 pm (BST)