The government has lowered the investment limit on post office savings bank schemes by two-third as part of its plan to set an upper limit on the total investment in all types of national savings certificates and to support the banking system in lowering the interest rate.
The new upper limit on the investment in post office savings bank schemes has been set at Tk 10 lakh for single name accounts and Tk 20 lakh for joint accounts for both the ordinary account and fixed deposit account categories.
In the past, people could invest a maximum of Tk 30 lakh in a single name account and Tk 60 lakh in joint accounts under both types of post office savings products.
The Internal Resources Division of the finance ministry on May 18 issued a Gazette notice reducing the limit with immediate effect.
The amount of total investment in all types of savings certificates by a person may be restricted at Tk 50 lakh.
Currently, there is no such limit on total investment in the savings tools although every savings certificate under the Department of National Savings has a separate upper limit.
The department has four savings instruments — the three-monthly profit bearing savings certificate scheme, the family savings certificate scheme, the pensioner savings certificate scheme and the five-year Bangladesh Sanchayapatra.
The government slashed the investment limit on the post office savings tools two and half months after it reinstated the interest rate on savings at the post office on March 16, backtracking from its decision to reduce the rate by half to facilitate the implementation of the single-digit interest rate in the country’s banking sector.
Earlier on February 13, the Internal Resources Division issued a notice reducing the interest rate on the three-year fixed deposit accounts to 6 per cent from 11.28 per cent on maturity and on the ordinary accounts to 5 per cent from 7.5 per cent.
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