Dhaka, Bangladesh (BBN) – Government savings certificates sale has dropped by 65 percent in the first quarter (Q1) of the current fiscal year against the same period of the previous fiscal, officials said.

The net sale of savings tools has stood only at BDT 4.98 billion in July-September period of fiscal 2011-12, down from BDT 14.33 billion in the same period in FY11, according to the official figures.

The sale amounted to BDT 3.11 billion in July, BDT 260 million in August and BDT 1.61 billion in September respectively, the data showed.

“The interest rates on bank deposits are higher than the return of savings certificates. So a significant portion of investors is switching to bank deposits,” an expert said, adding that the commercial banks now offer interest rates maximum at 12.00 per cent on deposits, but the government fixed the rates at 11 percent for different savings certificates this year.

BBN/SSR/AD-03Nov11-10:58 am (BST)