Net sale of govt savings tools zooms up in Q1

Net sale of the government saving instruments whopped by 225 per cent in the first quarter (Q1) of the current fiscal year (FY), 2014-15, mainly because of higher interest rates on the saving tools than the banks, said officials.

They said reduction of interest rates on deposit schemes by commercial banks helped raise overall investment under the state-run saving instruments.

The Department of National Savings (DNS) data showed that the net sale of saving certificates and investment bonds stood at Tk 68.20 billion during the July-September period of this fiscal, against Tk 20.97 billion in the corresponding period of previous fiscal.

Officials said if the growth continues, it will surpass the target for the fiscal within a short period.

The finance ministry has fixed Tk 90.56 billion net borrowing target from the state-owned saving tools for this fiscal.

Presently, some banks are offering only about 7.0 to 8.0 per cent interest on their fixed deposit schemes. But DNS is offering up to 13.45 per cent interest, encouraging people to deposit in the saving tools.

Following higher interest rates on the government's saving schemes, their encashment by the savers also reduced significantly. Auto-reinvestment facility of some saving instruments is another cause for such development, the officials added.

As per DNS data, gross sale of the saving instruments was Tk 98.55 billion against encashment of Tk 30.34 billion in Q1 of FY 15.  

Family Savings Certificate was the most selling product in the three months due to its high yield rates. Net sale of the certificate was Tk 31.91 billion.

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