Sales of savings schemes more than triple

January 01, 2021 09:42:30

| Updated:

January 01, 2021 10:41:00

The net sale of state-run savings instruments more than tripled in the July-November period of this fiscal year (FY), 2020-21, than that of the corresponding period of previous fiscal.

The Department of National Savings (DNS) data showed that the net sale of savings tools was Tk 190.44 billion in the first five months of the current FY.

The government’s net borrowing target from savings instruments is Tk 200.00 billion for FY 2020-21.

On the other hand, the net sale of savings schemes was Tk 58.41 billion in the same period of FY 2019-20.

The DNS officials said the yield rates of the government’s different savings certificates are attractive. So, savers are investing more in these schemes.

Many savers have reinvested in savings instruments after their schemes have got maturity. It is another reason for the increased sale, they added.

The gross sale of savings schemes was Tk 467.43 billion in the July-November period of FY 21, whereas encashment was Tk 276.98 billion.

The gross sale was Tk 288.62 billion and encashment was Tk 230.21 billion in the same period of FY 20.

The data shows that the payment of yield was Tk 132.48 billion in the first five months of FY 2020-21, whereas it was Tk 128.08 billion in the same period of FY 2019-20.

When asked, officials also said the DNS introduced an online database system in 2019 that had an impact on the overall sale of savings certificates in FY 2019-20.

Investors were not familiar with the new process. Many of them had no taxpayer’s identification number (TIN), which is mandatory for the online system.

But the savers are gradually adapting themselves with the new mandatory provision of purchasing schemes, like – providing national identification number (NID), income tax certificate and depositing money through bank cheque, they said.

The DNS launched the database system in February last year, and it was implemented countrywide in July.

The entity sells four types of savings certificates, and their yield rates are up to 11.76 per cent.

It also sells different types of bonds to local and expatriate Bangladeshis.

Currently, an estimated 20 million investors are involved in this sector.

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