Savings certificate sales rise further | The Daily Star
12:00 AM, September 01, 2017 / LAST MODIFIED: 12:00 AM, September 01, 2017

Savings certificate sales rise further

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Sales of national savings certificates continue to soar, riding on much higher returns compared to other investment schemes available in the market.

According to the latest data of the Directorate of National Savings Certificates, the net sales of the schemes increased by 44.45 percent to Tk 5,053.54 crore in July, the first month of the current fiscal year, compared to that in the same month a year ago.

The net investment in the savings schemes registered a record Tk 52,327 crore in fiscal 2016-17 against the government-set target of Tk 19,610 crore.

“The demand for the national savings tools has increased in recent months after the finance minister hinted in June that the interest rates will be adjusted in line with other market rates,” said a BB official.

However, the government is yet to take any decision on lowering the rates.

People are allured to invest their money in the savings certificates as banks offer 5 to 6 percent interest on their deposit products. On the other hand, savings schemes offer between 11.04 percent and 11.76 percent depending on the different types of schemes. High sales and the hefty returns on the savings tools have been pushing up the government's debt burden every year, analysts said.

The government has to pay interest rates between 2.84 percent and 7.6 percent for borrowing from the treasury bills and bonds.

“Sales of savings tools will continue to rise this fiscal year unless the government cuts the interest rates,” said a senior private banker. 

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