The government has reduced the interest rate on all types of savings certificates for the next six months. The Internal Resources Division of the Finance Ministry issued a notification in this regard on Monday.

The interest rate on savings certificates for 5 years and the average interest rate on 2-year treasury bonds (based on the latest 6-month auctions) was set to take effect on January 1. The current interest rate reduction in these two cases has also led to a reduction in the profit rate on savings certificates for the next six months, according to sources in the Ministry of Finance. This will take effect from July 1.

According to the new notification, the profit rate for investors with 7.5 lakh taka or less in five-year Bangladesh Savings Certificates has been set at 11.83 percent. So far, it was 12.40 percent. The profit for investors with more than this amount will be 11.83 percent. Earlier, it was 12.37 percent. In this case, the profit will be less at the end of the first, second, third and fourth years, respectively.

The five-year pensioner savings certificate will offer a rate of return of 11.98 percent on investments up to 7.5 lakh taka, up from 12.55 percent earlier. And for investments above 7.5 lakh taka, the rate of return will be 11.80 percent, up from 12.37 percent earlier. The rate of return will be lower at the end of the first, second, third and fourth years, respectively.

The five-year family savings certificate will offer a profit rate of 11.93 percent for investments up to 7.5 lakh taka; previously it was 12.50 percent. For investments exceeding this, the profit will be 11.80 percent; previously it was 12.37 percent. The profit will be lower at the end of the first, second, third and fourth years, respectively.

In addition, investment profit of up to 7.5 lakh taka in a three-year post office savings bank term account will be 11.82 percent; which was 12.30 percent so far. Investments exceeding this will earn profit of 11.77 percent; which was 12.25 percent earlier.