Interest cuts for postal savings accounts only
The government has cut the interest rate for postal savings accounts and kept the existing rates unchanged for national savings certificates, clarified the finance ministry yesterday.
On Thursday the inner Resources Division of the finance ministry issued a notice informing the lowering of interest on one-year savings to 5 % from 10.20 per cent with immediate effect.
For two-year schemes, the rate was cut to 5.50 per cent from 10.70 per cent. For three-year schemes it had been slashed to 6 per cent from 11.28 %.
Many construed the notice on Thursday as the government slashing the interest levels on national savings instruments too and was left panic-stricken thinking their sole source of income has suddenly contracted.
Now, the finance ministry has calmed their nerves: the rate cuts were limited to savings accounts maintained with the postal department.
Depositors can withdraw profits from their postal savings after half a year. In such case, the interest would be 4 % for one-year schemes, 4.50 per cent for two-year schemes and 5 per cent for three-year schemes, based on the circular.
Previously, the rates were 9 %, 9.50 % and 10 % respectively.
However, those that opened postal checking account before February 13 would obtain profits based on previous interest rates, a finance ministry official said.
The government has tightened the guidelines for savings instruments out of this current fiscal year with the view to getting savers to move back to banks for the intended purpose of parking their funds.
For example, depositors will need to have tax identification number (TIN) and bank makes up about opening postal savings accounts. Besides, the federal government has slapped additional 5 % tax on the profits.
These measures have led to a outsize decline in the sale of government savings instruments. People bought savings instruments worth Tk 5,433 crore between your months of July and December last year. The total amount was Tk 24,993 crore a year earlier.
However, the 12 per cent interest on savings certificates of three- and five-year durations have remained unchanged.
