The government is deciding to increase the profit rate of all types of savings cards to prevent the decline in sales of savings cards. Also, for the benefit of the retirees, it has been decided to pay the pensioner’s savings certificate every month instead of every three months.
Sources said that at present, only women and citizens above 65 years are given the profit of Family Savings Certificate every month.
It is known that on Tuesday, Secretary of the Internal Resources Department and Chairman of the National Board of Revenue. These decisions were made in the meeting held under the chairmanship of Abdur Rahman Khan.
According to sources, at present there is no automatic second investment in savings bonds. It was decided in the meeting that if no one withdraws the savings investment in future it will automatically be shown as second investment.
After the meeting, the NBR chairman told the reporters that for so long the investors in pensioner’s savings certificates used to get interest or profit every three months. From now on they will be paid their profit every month.
When asked about the increase in the interest rate on savings bonds, he said that a committee led by the finance department is working on this matter. In the light of the decision of that committee, the matter of increasing the interest rate of savings will be final.
He said that Bangladeshi mariners, pilots and cabin crew did not get the opportunity to invest in Wage Earners Development Bond until now, the meeting decided to give them the opportunity to invest in this bond.
According to the sources, at present the profit of three-month term savings certificate is 11.04 percent, the profit of full term family savings certificate is 11.52 percent, the profit of five-year term savings certificate is 11.28 percent, the profit of pension savings certificate is 11.76 percent. In the future, the rate of profit may be increased from 0.5% to 1.5%. If everything goes well, this new profit rate will be implemented from January 1.
According to sources, the government wants to increase the amount of borrowing from savings bonds due to reduced revenue collection and reducing borrowing from the banking sector.
From the last financial year 2022-2023, the government reduced net borrowing from savings bonds. In that year, the amount of net loan taken from savings bonds was negative 3 thousand 347 crores. In the budget of the last financial year, the target of net borrowing from savings bonds is Tk 18 thousand crores. But in the revised budget, the target is set at negative 7,310 crores.
On the other hand, a target of Tk 15,400 crore has been set for borrowing from this sector in the current financial year.
Finally, the government reduced the interest rate of all types of savings certificates by 2 percent in the case of investment of more than 1.5 lakh rupees from September 22, 2021, in order to reduce sales so that the government does not have to pay more interest in the savings certificate sector. As a result, the sales of Sanchpatra also decreased. In addition, most people currently do not have much money to save due to the rising cost of living due to inflation. As a result, the sale of savings bonds has collapsed.
It should be noted that the rate of tax at source on profits has been increased from 5 percent to 10 percent from July 1, 2019 to reduce the sale of savings certificates. At the same time, TIN (Tax Identification Number) has been made mandatory for buying savings certificates above Rs.1 lakh. Some more stringent measures are taken, including the imposition of a condition not to sell savings bonds without a bank account. The authorities hope that the new rules will give investors a new incentive to invest in savings bonds.
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