Net sales of savings tools surge in July-August

Government savings instruments experienced a significant upswing in net sales in the first two months of the current fiscal year compared to the corresponding period in the previous fiscal, due mainly to reduced encashment by savers this year.
Besides, savers continue to perceive state-run savings tools as a more secure investment avenue in contrast to banks and the capital market. This confidence has contributed to a slight overall sales boost this year, according to officials.
Data from the Department of National Savings (DNS) show that net sales of savings schemes reached Tk 56.63 billion in the July-August period of FY2023-24, in sharp contrast to only Tk 4.01 billion during the same period in FY2022-23.
The gross sales in the July-August period amounted to Tk 149.10 billion, with encashment hovering at Tk 93.48 billion.
Comparatively, the gross sales in the first two months of FY23 were Tk 145.38 billion, while encashment stood at Tk 141.36 billion, as per official data.
A senior official at the Savings Department said that manual savings instruments reached maturity at a higher rate last year, leading to increased encashment by savers.
Consequently, encashment levels have decreased this year and there are no plans for physical savings schemes in the coming year, as they are gradually phased out.
He said the department transactions are slated to transition fully to an online platform next year, coinciding with the maturity of all remaining manual schemes.
The government launched an online database named the 'National Saving Certificates Online Management System' and also made eTINs and national identity cards mandatory for savers in 2019.
The official said virtual schemes purchased online in 2019 will mature in 2024.
He mentioned that the number of immature encashments is currently very low.
Currently, there are 11 government-owned saving tools in the market, with four being savings certificates.
These include the 5-year Bangladesh Sanchayapatra (with an 11.28 per cent yield), 3-monthly Profit Bearing Sanchayapatra (11.04 per cent), Family Savings Certificate (11.52 per cent) and Pensioner Sanchayapatra (11.76 per cent yield). These are the maximum yield rates after the certificates mature.
The government has set the net borrowing target from savings schemes for the current financial year at Tk 180 billion.

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