The profit rates on national savings certificates have been reduced once again within a six-month interval. The Internal Resources Division (IRD) has announced revised interest rates for savings certificates for the next six months, which came into effect from January 1.

Under the updated structure, the highest profit rate on savings certificates will now stand at 10.59 percent, while the lowest rate will be 8.74 percent. The rates were previously cut in July, and following the regular six-month review cycle, they have now been lowered again.

The revised framework continues to offer relatively higher returns for smaller investments. A threshold has been set at BDT 750,000—investments up to this amount will receive higher profit rates, while returns decline for investments exceeding this limit. The government adjusts savings certificate rates periodically as part of its broader income and debt management strategy.

Updated Profit Rates

Among all savings instruments under the National Savings Directorate, the Family Savings Certificate remains the most popular. Previously, investments below BDT 750,000 earned 11.93 percent upon maturity after five years; this has now been reduced to 10.54 percent. For investments above that limit, the rate has dropped from 11.80 percent to 10.41 percent.

For Pensioner Savings Certificates, returns on investments below BDT 750,000 at maturity were 11.98 percent, which have now been revised to 10.59 percent. Investments exceeding the threshold will earn 10.41 percent, down from 11.80 percent.

Profit rates on five-year Bangladesh Savings Certificates have also been lowered. Investments under BDT 750,000 will now earn 10.44 percent, compared to the earlier 11.83 percent. Higher investments will again receive 10.41 percent, reduced from 11.80 percent.

Returns on quarterly profit-bearing savings certificates have also declined. Investments below BDT 750,000 will now yield 10.48 percent, down from 11.82 percent, while higher investments will earn 10.43 percent, compared to the previous 11.77 percent.

Savings certificates issued before July 1, 2025, will continue to follow the profit rates applicable at the time of issuance until maturity. However, any reinvestment will be subject to the prevailing rates on the reinvestment date. The rates will be reviewed again after six months.

Savings certificates are widely used by middle-income households, often serving as a financial buffer during emergencies and as a regular source of household income. With inflation remaining elevated—hovering between 8 and 9 percent despite some recent easing—the latest reduction in returns is expected to place additional pressure on middle-class families. Those who rely heavily on savings certificate income to meet monthly expenses are likely to feel the impact most strongly from the start of the new year.