Investment in national savings tools posted Tk 17,315 crore in July-October, growing from Tk 15,916 crore during the same period of the last year, as people continued to invest heavily in the tools because of low bank rates.
According to the latest Directorate of National Savings data, clients invested another Tk 4,620 crore in national savings certificates and bonds in October after relatively slow investment of Tk 3,665 crore in September.
The total investment in NSCs was Tk 4,266 crore in October 2016.
Officials of DNS and Bangladesh Bank said that higher interest rate of NSCs compared with the bank rates and sluggish business environment in the country continued to encourage clients to invest in NSCs.
They said that with the current trend investment in the NSCs would make fresh record in the current fiscal year of 2017-2018, after the investment had hit record Tk 52,327 crore in FY2016-2017.
Banks’ interest rate on deposits has been maintaining a downward trend for the last few months, with some banks offering as low as 4 per cent while clients get between 10 and 11 per cent interest on NSCs.
Finance ministry officials said that although the ministry wanted to cut the interest rate on savings certificates in July, the move is still to be materialised as the government is hesitant to cut the rate ahead of the general election scheduled to be held in late 2018.
Ruling party lawmakers have put pressure on the government not to cut the rate on the NSCs, they said.
BB officials said along with general clients, many of the businesses of the country also continued to invest in NSCs because of sluggish business climate.
Besides, a section of people including politicians and bureaucrats are also making huge investment to enjoy higher returns from the tools, an official added.
Former adviser of the caretaker government Mirza Azizul Islam told New Age that the people are still investing heavily in NSCs because of the low rate offered by the banks.
People with money are also not willing to invest in the private sector because of the risks and are becoming more interested in the NSCs, he added.
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