Rate cuts, inflation cause savings instrument sales to drop by 41pc in July

Business Report :

The net sales of savings instruments dropped sharply to Tk1,293 crore in July 2025 from Tk2,187 crore in the same month a year earlier, reflecting a year-on-year (YoY) fall of about 41per cent , according to Bangladesh Bank data.

Economists and policymakers attribute the decline to multiple factors, including stubbornly high inflation, tighter liquidity, reduced bank profitability, and lower yield rates on savings certificates.

Net sales of savings certificates are measured by deducting repayments against earlier investments from fresh sales. In June alone, net sales dipped by over Tk169 crore as encasements outpaced new purchases.

Despite this setback, FY25 showed some recovery compared to the previous year. Net sales closed FY25 with a negative balance of Tk6,063 crore – an improvement from the Tk21,124 crore deficit posted in FY24.

Still, the central bank’s latest data show total outstanding balances of savings instruments stood at Tk340,000 crore in July 2025, down from Tk348,000 crore a year earlier, a 2.3per cent decline.
The Finance Division recently slashed yield rates across several savings schemes, effective from July 1 through December 2025. Officials said the rates would be reviewed again in January 2026, depending on inflationary pressures and fiscal needs.

Under the revised structure, the five-year Bangladesh savings certificate now offers 11.83per cent for investments up to Tk7.5 lakh and 11.80per cent for higher slabs.

The effective first-year return has also been reduced, coming down from 10.13per cent to 9.74per cent .

The three-monthly profit-based savings certificate has seen similar cuts, with the first slab yield dropping to 11.82per cent from 12.10per cent .

Pensioner savings certificates have also been affected, as first-year returns were revised down from 10.23per cent to 9.84per cent.

Family savings certificates now yield 9.81 per cent in the first year, compared to the earlier 10.20per cent , while post office fixed deposits have been revised with the first-year return lowered from 11per cent to 10.65per cent.

The government introduced the “National Saving Certificates Online Management System” in 2019, making e-TIN and national ID cards mandatory for investors.