United News of Bangladesh

Across its full suite of savings instruments, sweeping modifications have been rolled out under Bangladesh's National Savings Scheme. One key alteration pertains to the Pensioner Sanchayapatra, which now follows a redefined approach to distributing annual gains. From July 2025, the scheme will operate under a revised model, defining yearly profit margins based on investment volume. Both full-term and premature encashment returns are now clearly stipulated. Let’s delve into the refreshed July-December 2025 interest rate structure of the pensioner savings arrangement. Pensioner Savings Certificates’ Profit Framework for July to December 2025 All existing and new investments, across every category of savings certificate, will be aggregated to determine the applicable rate. The new segmentation, reflecting the framework, is outlined below: i) BDT 7,50,000 or less ii) More than BDT 7,50,000 Read more: July 2025 Interest Rates of Paribar Sanchayapatra under Bangladesh's National Saving Scheme Presented below is the latest rate chart, indicating yearly returns based on investment tier and withdrawal status: Table: Yearly Profit Breakdown by Investment Level – Pensioner Sanchayapatra for July-December 2025  Investment Period (Year) Investments Up to BDT 7,50,000 Investments More than BDT 7,50,000 (BDT 7,50,001 and Above) Profit Rate (%) 1st 9.84 9.72 2nd 10.32 10.19 3rd 10.84 10.70 4th 11.39 11.23 5th / At Maturity 11.98 11.80 . Investors selecting the Pensioner Sanchayapatra with a maximum principal of BDT 7.5 lakh (7,50,000 or below) are entitled to the highest annual return upon full maturity. The corresponding annual rate of return is 11.98 percent (11.98%). For investments exceeding BDT 7.5 lakh (7,50,001 and above), the maximum annual return is slightly reduced to 11.80 percent (11.80%). If the investment is encashed before maturity, the return will be based on the rate structure given in the table. For amounts within the BDT 7.5 lakh limit, the first-year return is 9.84 percent. The second, third, and fourth years offer returns of 10.32 percent, 10.84 percent, and 11.39 percent, respectively. For sums exceeding BDT 7.5 lakh, premature encashment yields 9.72 percent in the first year. The applicable rates for the second, third, and fourth years are 10.19 percent, 10.70 percent, and 11.23 percent, respectively. Read more: July 2025 Interest Rates of 5-year Bangladesh Sanchayapatra under National Savings Scheme Who Benefits from the July-December 2025 Interest Rates on Pensioner Savings Certificates? The updated profit rates apply exclusively to Pensioner Sanchayapatra accounts initiated on or after July 1, 2025. A formal review of the revised rates is set to occur six months following implementation. However, the return rate secured at the time of issuance will remain unchanged throughout the duration of the investment. Therefore, the rate assigned upon purchase is fixed for the entire term. In a Nutshell Modifications to the National Savings Scheme have been implemented for the July–December 2025 period. According to the updated framework, the highest annual return for the Pensioner Sanchayapatra is 11.98 percent at maturity for investments up to BDT 7,50,000. For contributions exceeding BDT 7,50,000, the peak return is revised to 11.80 percent annually. This rate structure applies solely to certificates opened on or after July 1, 2025. Read more: July 2025 Interest Rates of 3-Monthly Profit-Bearing Sanchayapatra under Bangladesh's National Saving Scheme

The National Savings Scheme has introduced important revisions across all categories of savings certificates. Among them, the 5-year Bangladesh Sanchayapatra has undergone a key update regarding its profit allocation framework. Effective from July 2025, the revised structure outlines annual return rates. These rates are set both at maturity and for early encashment, based on the scale of investment. Let’s delve into the revised July-December 2025 profit structure of the 5-year savings scheme. 5-year Bangladesh Sanchayapatra's Interest Rates & Profits for July to December 2025 In assessing the applicable return rate, total accumulated investments across all savings instruments, including past contributions, will be included. The latest investment thresholds are detailed as follows: i) Up to BDT 7,50,000 ii) Above BDT 7,50,000 The table below outlines the updated annual profit rates for the 5-year scheme, reflecting both maturity and early withdrawal scenarios: Read more: July 2025 Interest Rates of 3-Monthly Profit-Bearing Sanchayapatra under Bangladesh's National Saving Scheme Table: Annual Return Rates by Investment Tier – 5-year Bangladesh Sanchayapatra for July-December 2025 Period Investment Period (Year) Investments Up to BDT 7,50,000 Investments More than BDT 7,50,000 (BDT 7,50,001 and Above) Profit Rate (%) 1st 9.74 9.72 2nd 10.21 10.19 3rd 10.72 10.70 4th 11.26 11.23 5th / At Maturity 11.83 11.80 . Individuals opting for the 5-year Bangladesh Sanchayapatra with an investment of BDT 7.5 lakh (7,50,000 or below) will receive the highest annual return at full term. This translates to an annual yield of 11.83 percent (11.83%). For amounts over BDT 7.5 lakh (7,50,001 and above), the peak yearly return is slightly lower at 11.80 percent. Should encashment occur before maturity, the applicable profit will align with the specified breakdown. For holdings within the BDT 7.5 lakh threshold, the rate stands at 9.74 percent in the initial year. Returns in the second, third, and fourth years are 10.21 percent, 10.72 percent, and 11.26 percent, respectively. Where the principal crosses BDT 7.5 lakh, early withdrawal will yield 9.72 percent in the first year. The second year offers 10.19 percent, followed by 10.70 percent and 11.23 percent in the third and fourth years, respectively. Read more: July 2025 Interest Rates of Paribar Sanchayapatra under Bangladesh's National Saving Scheme Who Can Access July-December 2025 Interests of 5-Year Bangladesh Sanchayapatra? The revised interest structure applies solely to 5-year Bangladesh Sanchayapatra accounts opened on or after July 1, 2025. A formal reassessment of the rates is scheduled six months after this policy takes effect. Nevertheless, the earnings rate confirmed at the time of purchase will remain fixed throughout the investment's lifespan. In essence, the initially assigned return is locked in for the full term. Piling Up Enhancements to Bangladesh's National Savings Scheme have been introduced for the July–December 2025 cycle. Under the revised structure, the peak annual yield for the 5-year Bangladesh Sanchayapatra reaches 11.83 per cent at maturity for deposits up to BDT 7,50,000. For amounts above BDT 7,50,000, the maximum annual return slightly adjusts to 11.80 per cent. This structure exclusively governs certificates issued from July 1, 2025, onwards. Read more: 6 Popular Bangladeshi Banks Offering Personal Loans for Marriage, Education, Travel, Medical and Other Purposes

The National Savings Scheme in Bangladesh has brought notable updates to all savings certificates. The 3-Monthly Profit-Bearing Sanchayapatra is among those receiving renewed attention. These revisions, effective from July 2025, apply to the profit distribution. The scheme sets quarterly profit rates for maturity and early encashment based on the amount invested. Let’s explore the newly structured July-December 2025 returns under the quarterly interest-bearing savings option. 3-month Profit-bearing Savings Certificates’ Return Framework for July to December 2025 When considering total holdings across all schemes, including prior investments, the applicable return rate will be determined according to the following investment brackets: i) BDT 7,50,000 or less ii) Exceeding BDT 7,50,000 The following table presents the profit structure for this three-year scheme, detailing returns upon maturity and early encashment. Table: Annual Profit Rates by Investment Tier in the 3-Month Interest-Bearing Scheme Investment Period (Year) Investments (Up to BDT 7,50,000) Investments (More than BDT 7,50,000 or BDT 7,50,001 and Above) Profit Rate (%) 1st 10.65 10.60 2nd 11.22 11.16 3rd / At Maturity 11.82 11.77 . Those purchasing the 3-Month Profit-Bearing Sanchayapatra with amounts up to BDT 7.5 lakh (7,50,000 or below) will receive a maximum quarterly profit at maturity. This corresponds to an annual rate of 11.82 percent (11.82%). For investments exceeding BDT 7.5 lakh (7,50,001 and above), the maximum annual rate is slightly reduced to 11.77 percent. In cases of early encashment, profit will be calculated according to the rates indicated in the table. Balances up to BDT 7.5 lakh (7,50,000 or less) attract an annual interest rate of 10.65 percent at the end of the first year. The rate rises to 11.22 percent by the second year.  Amounts above BDT 7.5 lakh (7,50,001 or more) earn 10.60 percent annually if encashed in the first year. The return rate increases to 11.16 percent in the second year. Read more: July 2025 Interest Rates of Paribar Sanchayapatra under Bangladesh's National Saving Scheme Who Qualifies for July-December 2025 Interest Rates on 3-Monthly Sanchayapatra? The updated interest rates are effective exclusively for 3-monthly profit-bearing savings certificates purchased on or after July 1, 2025. Return rates will undergo review six months following the implementation of this directive. However, Investors will continue to earn the rate prevailing at the time of their investment for the full duration. Put simply, the original rate at issuance remains unchanged for the entire investment term. Wrapping Up The National Saving Scheme in Bangladesh has been upgraded for the July to December 2025 period. The highest annual rate offered on the 3-month profit-bearing Sanchayapatra is 11.82 percent at maturity for investments up to BDT 7,50,000. When the investment amount surpasses BDT 7,50,000, the profit rate adjusts slightly to 11.77 percent. This updated rate framework applies only to 3-month Profit-bearing Savings Certificates acquired on or after July 1, 2025. Read more: 6 Popular Bangladeshi Banks Offering Personal Loans for Marriage, Education, Travel, Medical and Other Purposes

Six months after introducing a bold framework, the Bangladesh government have once again made significant changes to all national savings schemes. The revisions cover various schemes, including the well-known Paribar Sanchayapatra. These changes focus only on return rates against different investments. Let’s explore the newly announced profit rates of the Family Savings Certificate. Paribar Sanchayapatra (Family Savings Certificates’) Yield Structure from July 2025 In the case of any existing holdings across all schemes, along with previous investments, the return rate will apply based on the following investment limits: i) BDT 7,50,000 or belowii) Above BDT 7,50,000 The profit breakdown for this five-year savings scheme is detailed in the following table: Table: Revised Interest Rates of Paribar Sanchayapatra Applicable from 1st July, 2025 Year Investments Up to BDT 7,50,000 Investments More than BDT 7,50,000  ( BDT 7,50,001 and Above) Profit Rate (%) 1st 9.81 9.72 2nd 10.29 10.19 3rd 10.80 10.70 4th 11.35 11.23 5th / At Maturity 11.93 11.80 For Paribar Sanchayapatra investments up to BDT 7.5 lakh (7,50,000 or below), the highest monthly return will follow an annual rate of 11.93 percent (11.93%). For amounts exceeding BDT 7.5 lakh (7,50,001 and above), the top rate slightly drops to 11.80 percent. For early encashment, profit will be paid at the annual rates shown in the table above. Within the BDT 7.5 lakh ceiling, returns will be 9.81 percent in the first year. The second, third, and fourth years will offer 10.29 percent, 10.80 percent, and 11.35 percent, respectively. For investments above BDT 7.5 lakh, early encashment yields 9.72 percent in the first year. In the second, it will be 10.19 percent. The third and fourth years bring returns of 10.70 percent and 11.23 percent, respectively. Read more: 6 Popular Bangladeshi Banks Offering Personal Loans for Marriage, Education, Travel, Medical and Other Purposes Who Can Avail the July 2025 Return Rates of Paribar Sanchayapatra? The revised profit rates apply exclusively to purchases made on or after July 1, 2025. Investments prior to this date will remain under the previous terms. The profit rate will be revised six months after this order takes effect. However, investors will receive the rate applicable at the time of purchase for the entire tenure. In other words, the initially issued rate will remain unchanged throughout the investment period. Summing Up The maximum annual rate, featured in Paribar Sanchayapatra, for investments up to BDT 7,50,000 is 11.93%. For amounts above BDT 7,50,000, the highest rate stands at 11.80%. Only those who purchase Family Savings Certificates on or after July 1, 2025, will fall under this revised rate structure. Read more: Sanchayapatra at Maturity: Encashment or Renewal of Bangladesh’s National Savings Certificate

With rising inflation driving up the cost of everyday necessities, managing regular expenses can feel overwhelming, let alone saving for the future. Yet, building a financial safety net is more crucial than ever. In 2025, saving money demands a smarter approach—streamlining expenses, boosting income, and maximizing financial efficiency. Discover actionable strategies to safeguard your finances and thrive in the face of economic challenges. Smart Money Strategies for 2025 Here are some practical steps to help you save more in the coming year. Set Attainable Financial Goals Make sure your financial resolutions don't fade away after the initial months of the new year. Setting smart goals can keep your financial resolutions fresh, strong, and versatile throughout the year. Defining short-term savings targets can help you to build an emergency fund. On the other hand, long-term savings targets can energize you to run the race for fulfilling your big dreams like buying an apartment, studying abroad, or making a retirement fund. Read more: How to Improve Focus by Training the ‘Attention Muscle’ Instead of burdening yourself with strict frugal behavior, it would be wise to set specific, measurable, achievable, relevant, and time-bound financial objectives to save money. Review Expenditure Generally, not all products or services you pay for are essential, some are less necessary, and few are luxury. Tracking your spending behaviour is an effective trick to set realistic saving targets. Don’t do calculations in your head. Write down the costs on paper. Utilizing a smart financial app or personal finance spreadsheets, one can easily identify one’s spending patterns. Control Expenses After reviewing your spending behaviour, you can easily understand where to retrench. For instance, saving money doesn’t mean you have to eat less and suffer from malnutrition; rather, it means cut costs on dinners outside that can be replaced by homemade meals. Read more: Shiny Object Syndrome in Business, Career: Symptoms, Effects, Prevention In the same way, you can be thrifty about your wardrobe. For example, caring for winter clothes can save your money from buying new shawls and sweaters every year. Nowadays, people tend to spend on digital products every month. However, cancelling unnecessary subscriptions reduces your expenses. Services you don’t use regularly should also be considered for discontinuation to save money. While shopping for groceries, try to shop for a month instead of a week, it can let you enjoy some discounts and cashback. Compare prices to find a nearby grocery shop, super shop, or market where you can find goods and products at reasonable prices. Growing vegetables on the rooftop or your balcony can also save you some money on groceries. What’s more, don’t forget to negotiate for lower rates on products and services. Read more: Top 10 Wallet Apps to Organize Finances Make A Budget Without a fixed weekly or monthly budget, it is hard to control costs in diverse sectors like grocery, clothing, travel, etc. Those who have spouses, children, elderly family members, or dependents need to consider all kinds of expenses while preparing the budget. While creating a budget for a month or week, you can implement the 50/30/20 rule which means allocate 50% for needs, 30% for wants, and 20% for savings and debt repayment. Grow Your Earnings Savings can be easier if you can boost your income. To increase earnings, service holders can look for additional income sources such as freelancing, tutoring, online business, etc.  Besides, you can learn new skills for better career opportunities or promotions. Nowadays, diverse international platforms and reputed universities are offering free and paid online courses. Read more: Using the 37 Percent Rule to Make Better Decisions in Life Furthermore, you can rent out unused assets, like a room or a car.  Automate Savings Even when setting clear financial objectives and budgets, you may forget to put money into your savings accounts for a number of reasons. To avoid this issue, you can opt for automatic transfer of funds to a high-yield savings account like DPS. Many reputed banks in Bangladesh offer such profitable DPS schemes that will automatically transfer a certain amount of money from your salary account to your DPS account each month. Minimize Loans & Debts Avoid taking on loans or debts unless necessary. The banks lure people to take credit cards and personal loans. Uncontrolled credit card spending can trap you in huge debts. To avoid this, you can follow your budget strictly and pay through cash. While taking personal loans, look for banks with lower interest rates and flexible repayment options. Avoid taking a new loan besides repaying your previous loan. To avoid loans, it would be wise if you can build savings for rainy days. Read more: Micro-acts of Joy: Secret to Being Happier and Healthier? Monitor and Adjust Regularly With time, your necessities, earnings, and spending behavior will change. In some months, you may fail to control expenditures due to unforeseen situations. Therefore it is necessary to review your budget and financial goals monthly. Adjust strategies based on life changes or new priorities. And, don’t forget to celebrate milestones to stay motivated. Conclusion Savings help you to be financially stable and independent. Not to mention, during hard times, like medical emergencies or unemployment periods, savings can give you financial protection and mental strength. However, saving money is a habit that requires determination and sacrifice. By implementing the above-mentioned strategies, you can significantly increase your savings in 2025 while building a stronger financial foundation. Read more: Top Strategies to Prepare for 2025: Start the New Year with Confidence and Purpose

Sanchayapatra is a popular investment option in Bangladesh that has gained significant attention from investors in recent years. It is a savings instrument offered by the Bangladesh government, designed to help individuals save money for the future and grow it at the same time. The program offers an attractive interest rate, making it a great investment opportunity for those looking to secure their financial future. The Sanchayapatra program is considered to be a safe investment option as it is backed by the Bangladesh government. It offers a guaranteed return on investment and is ideal for individuals who are looking for a low-risk investment option. The program is open to everyone, including students, housewives, and the elderly, making it an inclusive investment option. In this article, we will discuss different types of Sanchayapatra and the process of buying Sanchayapatra in Bangladesh in 2023. Types of Sanchayapatra in Bangladesh Currently, the Directorate of National Savings of the government offers 11 unique investment programs. Among these programs, there are four distinct types of Sanchayapatras: 3 Monthly Interest Bearing Sanchayapatra, 5 Years Sanchayapatra, Pensioner Sanchayapatra, and Poribar Sanchayapatra. 3-Monthly Profit Bearing Sanchayapatra This investment program, also called the "Tin Mash Ontor Munafa Vittik Sanchaypatra," requires a minimal investment amounting to Tk 1,00,000 and has a three-year maturity period. This program was first introduced in 2004. Read More: What to Consider Before Buying Land: A Step-by-Step Guide Price Tk. 1,00,000, Tk. 2,00,000, Tk. 5,00,000, and Tk. 10,00,000. Duration Three years maturity period. Where to Buy Purchase and encashment can be done from National Savings Directorate, Bangladesh Bank branches, commercial banks and post offices. Profits Name of savings scheme Duration The Current rate of profit   Amount of investment         Up to Tk. 15,00,000 Tk. 15,00,001 to Tk. 30,00,000 Tk. 30,00,001 and more 3-Monthly Interest Bearing Sanchayapatra       Rescheduled Profit Rate (%)     After one year 10.00% 10.00 9.06 8.15   After two years 10.50% 10.50 9.51 8.56   After three years 11.04% 11.04 10.00 9.00 (Source: National Savings Directorate, retrieved on April 04, 2023) Read More: Shares vs Bonds: What is the Ideal Investment Opportunity Tax For up to Tk 5,00,000 (five lacs) investment, 5% tax is deducted at source on the profit, and for investment above five lac 10% tax is deducted at source on the profit. Who Can Buy 3-monthly Profit Bearing Sanchayapatra? All Bangladeshi citizens regardless of profession, or educational levelAny certified autistic cooperative institution (the profits of which must be used to benefit those with autism) approved by the District Social Services Office. Highest Ceiling (max limit) for Buying 3-Monthly Interest Bearing Sanchayapatra The ceiling for investment is capped at Tk 30,00,000 for individual investors and Tk 60,00,000 for joint investors. Other Benefits - Profit is payable quarterly.- Nominees can be appointed.- After the death of the purchaser, the nominee can immediately encash the savings certificate and withdraw the money or keep it and withdraw the profit, as usual, every three (3) months until maturity. Read More: Apartment Buying Mistakes to Avoid to Secure Your Investment

Basic money habits are important for everyone and when it comes to saving it is fundamental. You should teach your kids good saving and spending habits as early as possible at the age of 7. Remind your children of the famous quote of Warren Buffet “Do not save what is left after spending; instead, spend what is left after saving.” Explore here 10 effective ways to implant the habit of saving in your child. Why is it necessary to teach children to save money If you can develop good habits in your children it will be beneficial for them and helps them become responsible adults. Besides, the habit of good saving helps the child understand the value of money rather than being overly prudent or economical. It is necessary to teach them about delayed gratification when it comes to money. This can help them guard against unnecessary spending and learn to value establishing control of their money.  Read Newborn Baby, Infant Care Tips during Summer Ways to develop habit of saving in your child Check below the 10 steps to get your kids on the saving pattern. Responsible Spending Firstly, you need to teach your children the value of saving. Make sure you help them to differentiate between wants and needs. Needs comprise the basics- food, shelter, basic clothing, healthcare, and education. On the contrary, wants are all the extra things such cinema tickets, candy, bicycle or the latest smartphone. So, do not buy your child everything that they ask for at any time.  When they ask for an expensive toy or game, make them understand that it is not fundamental for them. Explain to them to save this money to buy anything fundamental. Then they will be able to truly value the effort which goes into saving and earning. You can also hang a picture of the toy or game that they want to buy next to their money box or saving jar so that they stay focused on their goal. Read: Effects of Domestic Violence on Children Provide a Place to Save You can buy a money box or a savings jar for children so that they can save their spare change and of course, it will be an excellent idea. If children get this chance they will be less wasteful and realize that any amount of money saved is always good for the future. Besides, it would be better if you make them understand the concept of disciplined savings by not letting them open the box till it is completely full and there is no room left. Moreover, when your children become older, you can set up their own savings account at a bank or even get a kid-friendly debit card. If they have their own savings account, they will be more encouraged to save money.  Read Creative Toys for Children to Foster Creativity Staying Away from Electronics Set Savings Goals If you tell your kids to save, it may seem pointless to them. So, it must be a better way if you help children define a savings goal. Saving goals will inspire them and they will be motivated.  When they know what it is they want to save for, allow them to break down their goals into achievable bites. For instance, if they want to buy an item of about TK.100 and they get a TK.10 allowance each day, help them figure out how long it will take to reach that goal, based on their savings rate.  Give incentives to encourage Savings  The interesting thing you can do to encourage your children to save is you can set incentives for your child. To do so you can fix a small amount of money which you add to their savings every time they save a specific amount. Read Best Educational YouTube Channels for Children For example, for every TK.500, your child adds another TK.200 to their savings. This will undoubtedly make them want to save more as they would want to reap more rewards. Explain to them how to invest Let your children understand what investing money means. To do that look for child-friendly investment schemes which are comparatively safer than other plans and encourage disciplined savings. Now, these schemes are available. You can choose anyone suitable for you and your child.   Allow them to earn their own money A survey by the American Institute of Certified Public Accountants (AICPA) shows that ⅔ of parents said that they paid their children an allowance with kids earning $5 per day, based on two hours of chores.  Read Young Kids Wearing Makeup: Health Risks and Ways of Prevention In this way, you can make your children savers by allowing them to earn and save money. Thus,  you can provide them with the opportunity to learn how to use it. With your allowances in exchange for chores, they are also learning the value of their hard work. Track Spending A better save is always to try to know where his money is going. You can track expenditures easily with a bank or debit card app. Besides, you can do it the old-fashioned way- maintaining a notebook.  Help your children write down their purchases each day and tell them to sum up at the end of the week. From this, they will get an eye-opening experience. Inspire them to think about their spending. Teach them how much faster they could reach their savings goal if they could change their spending patterns. Read Helping Kids with Sharing: How to teach a child to share Leave Room for Mistakes Let your kids control their own money. Allow them to learn from their errors. It will help them to step in and guide them away from a potentially costly mistake.  But make sure that mistake is a teachable moment. Teach them in such a way so that they will know what not to do with their cash in the future. Be a role model Your children always follow you so you should lead by example. To do so, you can set up a saving jar in the house in which you save money. They will learn the importance of savings and do it themselves. Read Nail-biting in Children, Teenagers: Causes, Dangers, Ways of Prevention Money Talks Make sure you talk about money with children if you want kids to learn about saving. Make a  schedule and talk with the child about money.

Saving and investing money both make up a huge part of financial planning. Both strategies offer resolute financial security for the future. Yet there are some major differences between the two. While savings offers a safe enclosure for immediate monetary needs, investment is a process of increasing the existing wealth. Therefore what are the pros and cons of savings and investment? And which one should you choose? Let's find out. What is Saving? Savings is typically the act of storing away the money. It offers a safety net for sudden or immediate needs. Banks offer long term fixed deposits and short-term savings account as per the need of the client. Depending on your need, you can start saving on a long-term and/or short-term basis. READ: Best Sites to Sell Used Electronics in Bangladesh From another perspective, savings are associated with low risk and low return. The cash is readily available at hand but the growth opportunity is very low. Pros of Savings Access and Availability Nowadays, it is quite easy to open a savings account. You have 24/7 access to your deposited money through ATM or debit card. In addition to that, you can also transfer funds from one account to another instantly. Security In Bangladesh, the savings accounts can be opened in Bangladesh Bank authorized banks only. As per the regulation of the constitution, Bangladesh Bank acts as the superintendent of all the existing government and private banks of the country. Due to high regulatory monitoring, your money is safe and secured beyond any reasonable doubt. Read What makes a Great Manager: Know the Qualities and Skills Accrue Interest A savings account accrues interest over your deposited money. The interest rate differs from bank to bank and it also depends on the amount of money deposited. There is also the factor of the type of deposition. For example, a fixed deposit will accrue more interest compared to a current savings account. However, the rate, in general, is quite low so you shouldn’t be expecting much to be added to your savings. No lock-in period Unless you are opting for the fixed deposit scheme, there is no lock-in period with your account. That is you can switch your account status as well as the minimum amount any time you want. This allows an added flexibility which can be useful in the long run. Read Earn Money Online: Best ways for Students to generate income during pandemic Cons of Savings Inflation The economy is susceptible to inflation. The worth of money 10 years ago grossly differs from the worth it has today. So if your bank is not providing you with a competitive interest rate, the savings might be subjected to inflation. That is to say, the worth of your deposit right now might be less in a year. Minimum balance requirement Most banks have a provision for minimum balance requirements. You need to maintain a threshold amount all year round. This can be problematic if you are saving a little. However, the threshold amount is very low in the case of current savings. But it can go up if you opt for a fixed deposit scheme. READ: Renowned online payment gateways in Bangladesh for domestic, international transactions