Interest rate of savings instruments may go up

Interest rate of savings instruments may go up by 0.5 to 1 percent in the next fiscal year, as their sale dropped by over 60 percent in the current fiscal year.

The issue was discussed at a meeting between Bangladesh Bank, National Board of Revenue (NBR), Finance Division and Savings Directorate at the central bank in the capital yesterday.

Chaired by Bangladesh Bank Deputy Governor Ziaul Hasan Siddiqui, the meeting agreed in principle on the matter, and it will be finalised later this week, meeting sources said.

The interest rate of different savings instruments was cut by 1 to 1.5 percent in the current fiscal year.

Following the slash, the net sale fell by about 65 percent in the first eight months of the current financial year.

At present four types of savings instruments are in the market -- Paribar Sanchaypatra, Pensioner Sanchaypatra, five-year term Sanchaypatra and three-year term Sanchaypatra.

In the current budget, the interest rate on Paribar Sanchaypatra was fixed at 11.04 percent while 10 percent on three-year term Sanchaypatra.

In addition, 10 percent tax was imposed on their profit. The tax may be brought down to five percent.

Source: The Daily Star (May 24, 2011)