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20 February, 2020 00:00 00 AM
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Govt may review decision on postal savings interest

Says Finance MInister AHM Mustafa Kamal
Staff Reporter, Dhaka

Finance Minister AHM Mustafa Kamal has hinted at retracting from a recent government move with regard to lowering the interest rate on postal savings. He dropped the hint yesterday while talking to the journalists at the secretariat after a meeting of the cabinet committee on purchase.

Earlier, the government on February 13 slashed by half the interest rate on savings postal savings to facilitate implementation of the single-digit interest rate in the country’s banking sector. Soon after, the government’s decision to lower the interest rate has prompted criticism by different quarters.

Kamal said the government might reconsider about this decision as it has been criticised by different quarters. “Along with the postal savings, the interest rate on the savings certificate is also very high. We want to bring down the interest rate of banks to single digit and for that to happen, we need to revise the interest structure in many other saving schemes,” he said.

The minister also said the provision for savings certificate and postal savings are mainly for the common people so that they can park their savings in formal channels. “But many wealthy people do misuse such provisions. “Besides, there is no other country in the world which provides such high interest against bank savings,” he said.

According to available data from the Department of National Savings (DNS), deposits in ordinary accounts of the post offices across the country more than doubled to Tk 2,930 crore in the fiscal 2018-19 from Tk 1,325 crore only four years ago.

Until February 12, the finance ministry offered as high as 11.28 per cent interest on a three-year fixed deposit account with the post offices, which is higher than the interest rates offered by the banks.

In case of ordinary accounts with the post offices, the interest rate was 7.5 per cent, which is also higher than the rates offered by the banks for savings accounts.

However, the government's latest move to cut interest rates on postal savings has created frustration among savers and is likely to affect the overall savings.

 

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Editor : M. Shamsur Rahman

Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

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