Shah Alam Nur :
The small and medium investors have been losing their interest to fresh investment in state-run savings instruments amid cut in interest rate by the government.
The cut in interest rate also hurts the small and medium savers, pension holders and insolvent families.
The sale of state-run savings certificates has declined in recent months following reduction of interest rates, an official at the Department of National Savings (DNS) told the New Nation on Sunday.
The new decision has been discouraging small and middle-income investors, the official said.
He said the sale of savings certificates has been affected seriously as presently the daily sale of savings tools declined by more than 8 per cent.
The DNS data showed the rates of return on Family Savings Certificate declined further from 13.45 per cent to 11.52 whereas Five-Year Bangladesh Savings Certificate from 13.19 pc to 11.28, Three-Month Savings Certificate from 12.59 pc to 11.04, Pensioner Savings Certificate 13.19 pc to 11.76 and Post Office Savings Certificate from 13.24 pc to 11.28.
According to bankers, if a retired person invests Tk 100,000 in a national saving certificate, he/she gets nearly Tk 1070 a month but now he/she will get Tk 912 which is less than 14 per cent compare with previous time.
Abdur Rahman, a retired government officer from Sirajganj said he lost his interest to state-run savings certificates as the government cut the rates on savings certificates in May last.
He said the government move to reduce the interest rate of national savings certificates hit hard the low and middle-income households.
Rafique Mazumder from Mirpur said following reduction in the rates of savings certificates, he got discouraged to invest in the DNS instruments.
Low and middle-income households prefer savings certificates because they are secure and offer higher rates of interest than the bank deposit rates.
Savings certificates are widely regarded as risk-free investments for the retired persons by the state but cut in interest has been taking toll on fresh investment in the certificate.
The official gazette of the decision was published on June 10, 2015 by the Finance Ministry’s Internal Resources Division (IRD). The new rates are applicable only to instruments sold after May 23, 2015. Those sold earlier will retain the previous rates.
