Staff Correspondent

Bangladesh National Savings Scheme 2025 offers the highest profit rate for 5-year Sanchayapatra compared to all its previous versions. Both the rate of return at maturity and on encashment have seen notable increases. Additionally, the investment limit has been significantly raised.

On January 21, the National Savings Department published a notice confirming the continuation of tax at source on its official website. Consequently, savings certificate holders now better understand their entitled amount at maturity or upon early encashment. Let’s explore the new profit structure of the 5-Year Bangladesh Savings Certificate (Sanchayapatra) in detail.

5-year Bangladesh Savings Certificates’ Updated Return on Investment

The profit payable upon encashment and maturity at different investment limits under this 5-year scheme is detailed in the table below:

Table: Profit Rates for Various Investment Limits in the 5-Year Bangladesh Savings Scheme

Investment Period (Year)
Investments

Up to BDT 7,50,000

Investments

BDT 7,50,001 and Above

TDS

on Investment up to BDT 5,00,000 (%)

Profit Rate

(%)

TDS

on Investment from BDT 5,00,001 to 7,50,000

(%)

Profit Rate

(%)

TDS (%)

Profit Rate

(%)

1st 5 10.13 10 10.13 10 10.11
2nd 10.64 10.64 10.62
3rd 11.19 11.19 11.17
4th 11.78 11.78 11.75
5th 12.40 12.40 12.37
For investors who buy Bangladesh Sanchayapatra up to BDT 7.5 lakh (7,50,000 or below) ceiling, the maximum profit will be given at an annual rate of 12.4 percent (12.4%). For investments exceeding BDT 7.5 lakh (7,50,001 and above), the maximum profit rate decreases slightly to 12.37 percent.

The source tax on profits varies based on the investment threshold. For investments up to BDT 5 lakh (5,00,000 or below), a 5% tax applies. However, for amounts surpassing BDT 5 lakh (5,00,001 or above), the applicable tax rate is 10%.

If cashed out before the expiry date, the principal amount will be returned along with profit calculated at the relevant rate for each elapsed period as mentioned in the table.

In the case of early encashments, for investors with up to BDT 5 lakh (5,00,000 or below), the annual interest rate will be 10.13 percent at the end of the first year. At the end of the second year, this return will be 10.64 percent. By the third year, the interest rate will be 11.19 percent; after the fourth year, it will reach 11.78 percent.

For investments above BDT 5 lakh and up to 7.5 lakhs (BDT 5,00,001 - 7,50,000), the encashment results in a profit of 10.13 percent in the first year. At the end of the second, third, and fourth years, the profit rate will be charged at 10.64 percent, 11.19 percent, and 11.78 percent respectively. In all cases, a 10 percent source tax will be imposed on the profit.

For investments exceeding BDT 7.5 lakh (7,50,001 and above), the 10 percent source tax on profit remains unchanged. In cases of early encashment, the annual profit will be calculated at a rate of 10.11 percent for the first year. This rate increases to 10.62 percent in the second year. For the third and fourth years, the profit rate rises further to 11.17 percent and 11.75 percent, respectively.

Eligibility Criteria for the New Profit Rate
The revised profit rate applies exclusively to investments in 5-year Bangladesh Savings Certificates made on or after January 1, 2025.

Who Can Apply for This Savings Scheme
- All Bangladeshi citizens irrespective of profession
- Provident funds will be acknowledged or administered by the following rules:
o Sub-rule (2) under the rule of 49 of the Income-tax Acts 1984 (Part-II)
o Provident Funds Act, 1925 (19th Act of 1925)
- Income from the following sources (certified by the concerned Deputy Commissioner of Taxes) according to the 34th section of Part A of Schedule 6 of the Income-tax Ordinance-1984:
o Seed production and Marketing of locally produced seeds
o Fruit and leafy vegetable cultivation
o Production of pelleted poultry feeds
o Poultry farms
o Cattle farms and Dairy and dairy farms
o Fishery farms
o Frog production farms
o Silkworm rearing farms
o Mushroom production
o Horticulture farm projects
- Educational institutions for individuals with autism, or any other organization providing services to autistic individuals (must be certified by the relevant district social services office). A key requirement for profit distribution is that all income generated from the institution's investments must be exclusively used for the benefit of autistic individuals.
- Orphanages, foster homes, or registered shelters established for the care of orphaned and destitute children.
- Dedicated and registered shelters for the elderly.

Highest Ceiling

- For Individuals: A limit of BDT 30 lakh for a single account and BDT 60 lakh for a joint account.

- For Institutions: 50% of the total provident fund balance, with not more than BDT 50 crore.

- For Firms: A maximum cap of BDT 2 crore.

- For Institutions supporting Autism, Registered Shelters for Orphans, Destitute Children.

- Elderly: A maximum limit of BDT 5 crore.

Additional Benefits

- Investors have the option to appoint a nominee.
- Upon the investor's death, the nominated individual can either encash the scheme or wait until maturity.

Summing Up

Investments of up to BDT 7,50,000 in 5-Year Bangladesh Sanchayapatra will yield a maximum profit rate of 12.4 percent at maturity. For investments going beyond BDT 7,50,000, the net profit rate is capped at 12.37 percent.

In 5-year Bangladesh Savings Certificates, two distinct categories exist for investments within the BDT 7.5 lakh limit, based on the source tax applied to the profit. A 5% tax is levied on investments up to BDT 5 lakh, while a 10% tax is applied to amounts exceeding BDT 5 lakh.

Moreover, early redemption provides higher returns this year compared to previous periods.