The government has begun the new year with another cut in interest rates on National Savings Certificates, dealing a fresh blow to middle-income families and retirees who rely on these instruments for regular income.
The Internal Resources Division (IRD) announced that the revised rates took effect from Thursday, marking the second reduction in profit rates on savings tools in the past six months.
As 2026 begins, many savers are finding their financial cushion shrinking.
National Savings Certificates, commonly known as Sanchaypatra, are widely used to meet daily household expenses, medical costs and education fees, particularly by pensioners and small investors.
Under the new rates, the popular five-year Family Savings Certificate now offers a return of 10.54 percent for investments up to Tk7.5 lakh, down sharply from the previous 11.93 percent.
For investments above Tk7.5 lakh, the rate has been fixed at 10.41 percent.
Pensioners have also been affected, with the Pensioner Savings Certificate rate reduced from 11.98 percent to 10.59 percent for investments under Tk7.5 lakh while returns for larger investments have been set at 10.41 percent.
Similarly, the five-year Bangladesh Savings Certificate rate has been lowered from 11.83 percent to 10.44 percent for smaller investments, and to 10.41 percent for amounts exceeding Tk7.5 lakh.
The three-month profit-based savings certificate now yields 10.48 percent for investments up to Tk7.5 lakh, compared to the earlier 11.82 percent while returns for higher investments stand at 10.43 percent.
The revised structure effectively creates two categories of savers with those investing more than Tk7.5 lakh facing steeper reductions in monthly returns.
Officials say the rates are reviewed every six months as part of broader fiscal management.
By cutting savings tool rates, the government aims to reduce pressure on public borrowing and encourage depositors to keep more money in banks, strengthening liquidity and lending capacity in the banking sector.
However, certificates purchased before July 1, 2025, will continue to earn returns at the previously fixed rates until maturity.
The new rates will apply only to fresh investments or reinvestments after existing certificates expire.