National Savings Certificates Bangladesh: Schemes, Process, and More

In Bangladesh, National Savings Certificates are a popular investment option for citizens. The government offers various schemes to encourage savings among its citizens.

One of the most popular schemes is the National Savings Certificate, which has a fixed return rate of 12% per annum. This rate is guaranteed by the government, making it a low-risk investment option.

Investors can purchase these certificates from designated branches of banks, post offices, and other authorized outlets. The process is straightforward and can be completed in a matter of minutes.

National Savings Certificates (Bangladesh) offer a range of schemes designed to help people save and earn returns.

The Family Saving Certificate, also known as Paribar Sanchaypatra, is a 5-year scheme that provides a return of around 12.2% if encashed after maturity, and can be invested in with a minimum of Tk 10,000 and a maximum of Tk 45,00,000.

Investors can choose from different schemes, each with its own unique features and benefits. The Pensioner Saving Certificate, for example, is designed for retired government and semi-government employees, and offers a return of around 12.2% for withdrawal after 5 years.

Here are some key features of the National Savings Certificates schemes:

Each scheme has its own unique requirements and benefits, so it's essential to choose the one that best suits your needs.

If you're looking to invest in a National Savings Certificate, you have several schemes to choose from.

The Family Saving Certificate, also known as Paribar Sanchaypatra, is a great option for women, requiring a minimum investment of Tk 10,000 and a maximum limit of Tk 45,00,000.

This 5-year scheme offers a return of around 12.2% if cashed after maturity, making it a great way to save for the future.

You can invest in the Pensioner Saving Certificate if you're a retired government or semi-government employee with at least 20 years of service.

Typical returns for this scheme are around 12.2% for withdrawal after 5 years, and varying degrees of returns for premature withdrawal based on the number of years of investment.

The Quarterly Profit based Savings scheme, also known as Tin Mash ontor munafa vittik sanchaypatra, requires a minimum investment of Tk 1,00,000 and has a maturity period of 3 years.

Maximum investment in this scheme is capped at Tk 30,00,000 for a single owner and Tk 60,00,000 for a joint owner, with returns around 11.8% for the complete tenure of 3 years.

The Bangladesh Saving Certificates scheme provides a return of around 12.2% at maturity, with varying degrees of returns for premature withdrawal depending on the duration of investment.

Maximum allowable investment in this scheme is capped at Tk 30,00,000 for individual investors and Tk 60,00,000 for joint investors.

Here are the key schemes under National Savings Certificates:

The National Savings Certificates (NSCs) have been criticized for offering returns significantly higher than banks, considering inflation. This high return rate discourages people from investing in high-risk instruments like stocks.

Some experts, like the Centre for Policy Dialogue (CPD), have asked the government to decrease the interest rate on saving certificates to prevent a significant liability. The International Monetary Fund (IMF) has also suggested phasing out NSCs eventually.

The proposal to increase the maximum limit for investments in pensioner saving certificates has been criticized as unjust for employees retired from private organizations. This move was made by the National Savings Department after the government increased the pension of its employees.

Tax-advantaged savings plans in Bangladesh, which include NSCs, have been a topic of discussion among policymakers and experts.

The Sanchayapatra process has become more streamlined with the automation of the new system. This means paperwork-related complications will significantly reduce.

For Family Sanchayapatra, Three-Month Profit-Based Sanchayapatra, and Pensioner Sanchayapatra, only the original invested amount will be automatically reinvested.

The maximum investment limit will be applied from the date of reinvestment in these cases.

Completing the encashment of Sanchayapatra typically requires around 2 to 3 business days after maturity, depending on the issuing bank.

Each bank has its unique form to carry out the process, which needs to be filled out and manually signed before submitting it to the branch of the bank from where the Sanchayapatra was purchased.

If you can't appear at the bank or sign the form due to physical limitations, a nominee can carry out the procedure on your behalf, but you'll need to provide a medical certificate verifying your physical condition.

The nominee can only withdraw the profit earned from the Sanchayapatra with explicit written authorization from you, including your signature and a discharge of the profit coupon.

However, the initial deposit value cannot be accessed solely through an authorization letter or permit.

For Sanchayapatra purchased online through the National Savings Scheme Online Management System, the process becomes much simpler, with the principal credited directly to your account upon the exact day of maturity.

All transactions will be processed through the Electronic Fund Transfer (EFT) system, so you won't need to visit the bank to receive the profits or maturity value.

The Sanchayapatra Renewal Process is a crucial step in maintaining the continuity of your investment. The new system has made it easier to reinvest your money.

For Family Sanchayapatra, Three-Month Profit-Based Sanchayapatra, and Pensioner Sanchayapatra, the original invested amount will be automatically reinvested. This means you don't have to do anything extra.

In the case of five-year Sanchayapatra and Post Office Sanchayapatra, both the principal and profits will be automatically reinvested, ensuring your investment grows over time.

The maximum investment limit will be applied from the date of reinvestment, so keep an eye on your limits.