Pensioners' savings scheme from today

The government is introducing from today a new pensioners' savings scheme for retired employees of government, semi-government and autonomous bodies.

The new scheme with a five-year term bears 11 percent interest and a

retired employee can buy certificates worth up to Tk 20 lakh. Beneficiaries can draw the profit every three months.

The other schemes now have 10.5 percent and 11 percent rates and postal savings offer 12.5 percent interest. But the government is contemplating slashing these rates to market-based rates from this month in line with a suggestion of the International Monetary Fund (IMF), finance ministry sources said.

Chairman of National Board of Revenue (NBR) Khairuzzaman Chowdhury said to The Daily Star last night, "The new savings certificates can be purchased at the National Savings Directorate, banks and post offices."

"... The certificates, which are being printed now, will be available after a couple of days," added Chowdhury, also secretary of the Internal Resource Division of the finance ministry.

"The government employees are used to a life on monthly salaries. After retirement they need to have some ways to invest their limited savings safely and draw profits periodically."

"Although the interest rates of other savings instruments may be cut in the future, the rates of this scheme will not be reduced," the NBR chief said explaining the rationale for the new scheme.

Finance ministry sources put down the government move to cut interest rates of the certificates in general down to its being burdened with high interest.