Do you want to keep your savings secure while earning regular profits? Then the "Three-Month Profit-Based Savings Certificate" could be an option.
Introduced nearly 28 years ago, the special feature of this savings certificate is that it can be purchased by Bangladeshi citizens from all professions and walks of life.
It also offers the opportunity to withdraw profits every three months against the investment.
Unlike the Family Savings Certificate (Poribar Sanchayapatra) and the Pensioner Savings Certificate, it is not restricted to specific groups of people.
However, there are certain rules regarding investment limits, profit rates, and purchasing procedures.
These savings certificates are available in denominations of Tk1 lakh, Tk2 lakh, Tk5 lakh, and Tk10 lakh.
They can be purchased from District Savings Offices, National Savings Special Bureaus, commercial banks, and post offices.
The tenure of this certificate is three years.
For investments up to Tk7.5 lakh, the profit rate upon maturity is 11.82%.
For investments exceeding that amount, the rate is 11.77%.
Encashing the certificate before maturity yields a relatively lower profit rate.
If excess profit has already been paid out, it will be adjusted against the principal amount.
An individual can invest a maximum of Tk30 lakh under a single name, while the maximum investment limit for a joint name is Tk60 lakh.
Additionally, various institutions and firms can purchase these savings certificates under specific conditions.
Bangladeshi citizens of all classes and professions can purchase these savings certificates.
Under specific conditions, recognized provident funds, agricultural and farm-based income-generating institutions, organizations supporting autistic individuals, and registered shelters for distressed orphans and the elderly are also eligible to invest.
Tax is deducted at source (TDS) from the profits of the savings certificate.
A tax of 10% is deducted if the investor possesses a Taxpayer Identification Number (TIN), while a 15% tax is deducted if they do not have a TIN.
However, this withheld tax is no longer a final tax liability. During the submission of income tax returns, there is an opportunity to adjust the tax deducted at source according to the rules.
One of the main advantages of this savings certificate is the opportunity to collect profits every three months.
Additionally, nominees can be appointed. In the event of the purchaser's death, the nominee has the option to either encash the certificate to withdraw the funds or continue collecting profits every three months until maturity.
Furthermore, investors can utilize the automatic reinvestment facility by contacting the issuing office before maturity.
Why it matters
Understanding the rules, profit rates, and investment limits of savings certificates helps Bangladeshi citizens make informed financial decisions.