Investing more in savings certificates will reduce profits (List)

News Desk: The government has reduced the profit margin by investing more in six of the nine national savings schemes running in the country. The more you invest from now on, the less profit you will get.

The Department of Internal Resources of the Ministry of Finance has issued a circular on Tuesday redistributing the rate of profit in the National Savings Certificate by fixing the rate of return in three steps based on the amount of investment.

The six schemes are: 5-year Bangladesh Savings Certificate, three-month profit-based Savings Certificate, Pensioner Savings Certificate, Family Savings Certificate, Post Office Savings Bank-Term Account and Wage Earner Development Bond. However, the profit of Post Office Savings Bank-General Account, US Dollar Premium Bond, US Dollar Investment Bond has been kept unchanged.

The revised rate will be effective only for those who buy new savings certificates, the notification said. Even if you re-invest after the expiry of the previous savings certificate, the profit will be given at the new rate. This new rate of profit will apply to both individuals and organizations.

The notification further said that the savings certificates purchased before the issuance of this order will be given profit at the rate of purchase time. However, the new rate of profit will be applicable in case of reinvestment at the end of the term. Profits will be given at the applicable rate considering the cumulative investment in all the savings schemes. After the issuance of this order, in case of return of the money invested, it will be given at the applicable rate considering the previous investment. In case of joint ventures, the total investment in all the savings schemes described by each investor will be calculated on the basis of what rate they will get profit. The amount of cumulative investment of each investor will be calculated separately. Profits will be given at a simple rate in all savings schemes.

Family savings certificates are sold more in the country. At the end of the five-year term, the savings rate is 11.52 percent. If you invest up to Tk 15 lakh under the new rules, you will get the same rate of profit. However, if the investment is more than 15 lakh, the profit will be reduced by 10.50 percent. And if you invest more than 3 million rupees, the profit will be further reduced at the rate of 9.50 percent.

In case of five year term Bangladesh Savings Certificate, the profit at the end of the term comes at the rate of 11.28 percent. Under the new rules, if you invest more than Tk 15 lakh in these savings certificates, you will get a profit at the rate of 10.30 percent. And if you invest more than 30 lakh, the profit rate will be reduced by 9.30 percent.

At the end of three years, the profit will be 11.04 percent. According to the new rules, if you invest more than Tk 15 lakh in this savings certificate, you will get 10 percent profit, and if you invest more than Tk 30 lakh, you will get 9 percent profit.

The five-year pension savings account is getting 11.6 percent profit. Under the new rules, investing more than Tk 15 lakh in these savings certificates will reduce the profit rate to 10.75 percent. And with an investment of more than 30 lakh rupees, the profit will be reduced by 9.75 percent.

The three-year term Post Office Savings Bank currently has a profit margin of 11.28 percent. Under the new rules, if you invest more than Tk 15 lakh in this savings certificate, you will get 10.30 percent profit. And if you invest more than 30 lakh, the profit will be reduced by 9.30 percent.

In the case of Wage Earner Development Bonds, 11.20 per cent profit is applicable after 24 months but before 5 years. According to the new rules, if the investment in this bond is more than Tk 15 lakh, the profit will be reduced by 10.27 percent. And if you invest more than 30 lakh taka, you will get 9.33 percent profit and if you invest more than 50 lakh taka, the profit will come down to 7.40 percent.

At present, the general return on investment of Post Office Savings Bank is 6 percent. No changes have been made to this scheme.

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