The aim of any investment has always been to grow the initial capital. People invest hoping to double or triple their initial sum and get a substantial ROI. But investment strategies are not that simple. With the risks associated with investments, there are more ways to lose money than gain. This is where Sanchayapatra, the national saving scheme of Bangladesh is different. The scheme offers a secure haven for investment at flexible conditions and good returns on investment. What is Sanchayapatra? In short, Sanchayapatra is a national savings certificate. It is a saving scheme implemented by the government of Bangladesh through its different financial subsidiaries. In hindsight, the initial intention for introducing the savings certificate was different. Sanchayapatra was first introduced in 1972 against the backdrop of a war-torn economy. The government encouraged people to save money to finance deficient economic spending. The extra expenditure of the government was financed from the savings received against the issued certificate. Read Is Gold a Good Investment in 2022? Historically, Sanchayapatra provided a good ROI through its interest schemes. This has grossly motivated people to save more and more. And soon enough Sanchayapatra became one of the top investment schemes in Bangladesh. The government of Bangladesh introduced more and more saving schemes over the years. Currently, there are 11 different types of national saving schemes of which 4 are of different Sanchayapatra schemes. Read E-commerce Scams: Ways to Protect Your Investment from Online Frauds Types of Sanchayapatra There are a total of 5 different types of Sanchayapatra. The difference is based on benefits and heads who can apply. Each scheme is unique to its own and caters to its targeted audience. The 5 Year Bangladesh Sanchayapatra This Sanchayapatra scheme provides profit every 3 months. It has an investment cap of 30 lac for single applicants or 60 lac for joint applicants. It provides one of the highest interest rates at 10.75% in the 4th year with 11.28% on maturity. Small enterprise and provident funds do not have any investment cap within this scheme. 3 monthly Profit Basis Sanchayapatra The 3 monthly profit basis scheme has a 3 year maturity period. Just like the Bangladesh Sanchayapatra scheme, the individual investment cap is 30 lac whereas a joint investment has a cap of 60 lac. The scheme doesn’t allow organizations or provident funds to invest. The interest rate is 10.50% in the 2nd year with 11.04% payable on maturity. Read Investment: What Factors to Consider before Investing Money? Pensioner Sanchayapatra The pensioner Sanchayapatra is a 5-year investment with a 50 lac investment cap. A person has to be a retired government, semi-government, autonomous, or semi-autonomous official to be eligible for this scheme. The interest in the 4th year is 11.00% with an 11.52% interest payable at maturity. Poribar Sanchayapatra The Poribar Sanchayapatra is exclusively designed for adult Bangladeshi females. The investment cap for this scheme is 45 lac BDT. There is no option for joint investment in this scheme. The interest payable in the 4th year is 11.20% with 11.76% on maturity. Each of these schemes has a profit accrual period of 1-year. Meaning if the savings are withdrawn before the completion of the first year, the investor will not receive any form of profit. In addition to that, a standard 5% tax will be accrued on the profit. Read Investment Opportunities in Bangladesh amid Pandemic Pros of Investing in Sanchayapatra So, why should someone invest in Sanchayapatra? There are several reasons to justify the investment. Secured Saving Sanchayapatra is a national saving certificate meaning it is directly run by the government through its subsidiary, the Bangladesh post office. Being a national scheme, there aren’t any underlying security issues with this investment. an investor can stay worry-free that their investment is safe and secured. High-Interest Payable Sanchayapatra offers some of the highest interest payable on a fixed investment across any savings denomination in Bangladesh. The high-interest payable combined with the security offered by the government can be a huge motivator to invest in Sanchayapatra. Read Angel Investment 101: Is It the Right Track for Your Startup? Tax Rebates This is another benefit of investing in Sanchayapatra. At 25%, Bangladesh has a fairly high-income tax. However, the NBR allows for tax rebates on income invested on Sanchayapatra. Meaning a person is not only benefitting from the saving but are also getting a tax cut for doing so. Cons of Investing in Sanchayapatra While there aren’t any personal cons of investing in Sanchayapatra other than the investment getting locked in for a certain period, there is some negative implication for the overall economy of the country. Investment Diversion The high interest payable on Sanchayapatra has been heavily criticized considering it is over the inflation rate. The rate is not matched by private organizations or high-risk investment instruments like stocks. As a result, people are becoming more and more inclined to invest in Sanchayapatra compared to other heads of investment which is creating an imbalance in the economy. Read Investment Guide: How Bangladeshi Youths Can Invest money and Create Wealth? Added Liability for the Government The national savings certificate is essentially a scheme outlining a system where the government borrows from individual investors. With more and more Sanchayapatra being sold, the government liability is also increasing at an equal rate. And with the high return on the NSC, it might soon go out of hand and create a liquidity trap for the government. Organizations like CPD and IMF have suggested the government reduce the rate of return and sale of NSC and eventually phase them out in the near future. Should You Invest in Sanchayapatra in 2022? Sanchayapatra is the perfect savings choice for risk-averse investors. In recent years, the rate of return has been considerably reduced. Yet Sanchayapatra remains one of the highest returning individual options in Bangladesh. Along with the high return, capital security is also something that makes investing in Sanchayapatra a good decision. Even at a reduced rate, the economy will still take considerable time to properly pick up its pace from the economic downturn of the pandemic. Against its backdrop, Sanchayapatra can be a safe bet against volatile times. Read SM²: Bangladesh-Focused Seed Accelerator by SBK Tech Ventures, SOSV, Miaki Final Thoughts Though Sanchayapatra has a negative implication for the government liability and investment distribution within the economy, it is still a preferred investment mode for many. Considering the benefits, returns, and safety, investing in Sanchayapatra in 2022 is definitely on the cards for the veteran as well as first-time investors.