The government is set to collect funds by selling the savings certificates in the current 2021-22 fiscal year.
However, in the proposed budget it is even said that the government will take a loan of Tk 32,000 crore by selling savings certificates to the common people, but it will have to pay back at least Tk 38,000 crore interest.
Purchasing savings certificates from affluent people of all classes and professions in the country is a reliable means of investment. There are millions of such families who cover their family expenses with the profits earned from savings certificates.
According to the previous year’s data, the government target of sale of savings certificates is exceeding every year. As a result, the government has brought a good number of changes to reduce savings certificate sales.
The changes that have been brought are, Tax Identification Number (TIN) has been made mandatory for purchasing savings certificates or postal savings of more than TK 2 lakh.
In case of institutional investment, five year term savings certificates can be purchased only from the Savings Bureau under the Department of National Savings of Bangladesh. It cannot be purchased from any other commercial bank.
According to the new rules, a person can invest up to a maximum of Tk 50 lakh in all types of savings certificates.
In this case, anybody cannot buy more than Tk 3 million in three-month profit-based savings certificates and five-year savings certificates schemes.
However, there are some exceptions for family and pension savings. Under the Family Savings Certificate Scheme, a person (women, physically challenged and men over 65 years of age) can invest a maximum of Tk 45 lakh. If one invests Tk 45 lakh under this scheme, he can invest another Tk 5 lakh in another savings certificate scheme. In other words, a person cannot invest more than Taka fifty lakh.
Profits on savings certificates up to Tk 5 lakh will be taxed at source at 5 per cent, but anyone who has more savings certificates, he/she will have to pay 10 percent tax at source.
Savings certificates cannot be bought without a bank account. The profit of the savings certificate and the principal amount invested at the end of the term goes directly to the bank account of the concerned buyer.
There are currently four types of savings certificates in the country. These are a five year Bangladesh Savings Certificate, Three Monthly Profit-Based Savings Certificate, Family Savings Certificate and Pensioner Savings Certificate.
Citizens of all classes and professions can purchase five-year term and three-month profit-based savings certificates.
On the other hand, family savings certificates are not for everyone. Anyone 18 years of age or older can buy them, but physically disabled men or men aged 65 and above can buy family savings certificates.
Pensioner savings certificates also do not apply to everyone. Retired officers and employees of government, semi-government, autonomous, semi-autonomous organizations will be able to purchase pension savings certificates. It can also be purchased by retired Supreme Court justices and retired members of the armed forces.
Savers are diverting their money to the savings certificates for their getting less interest on bank deposits, said officials of the Bank.
People always consider savings certificates as a safe investment, he added.
