The 2025 Bangladesh National Savings Scheme sets a new benchmark, offering the most lucrative profit rate ever for Pensioner Sanchayapatra. The rate of return has increased both at maturity and upon early encashment, with notable adjustments in the investment limits associated with these returns. On January 21, 2025, the National Savings Department finalized its decision on tax deduction at source. It provides clarity on the calculation of payouts for different investors. Let’s explore the revised rate of return for pensioner savings certificates (Sanchayapatra) in detail. Pensioner Savings Certificates’ Updated Investment Yields The table below shows the expected profit at the time of encashment and maturity for various investment limits in this 5-year scheme: Table: Revised Return Rates for Different Investment Tiers in Pensioner Savings Schemes 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 No TDS 10.23 10 10.23 10 10.11 2nd 10.75 10.75 10.62 3rd 11.31 11.31 11.17 4th 11.91 11.91 11.75 5th 12.55 12.55 12.37 Read more: 5-Year Bangladesh Sanchayapatra 2025: Revised Profit Rates Pensioner Sanchayapatra offers a maximum annual profit of 12.55 percent (12.55%) for those investing up to BDT 7.5 lakh (7,50,000 or below). For investments above this threshold, specifically BDT 7.5 lakh (7,50,001 and above), the profit rate adjusts slightly to 12.37 percent. No tax will be deducted at source for investments capped at a maximum of BDT 5 lakhs (5,00,000) in the pensioner savings scheme. However, if the investment surpasses BDT 5 lakhs taka (5,00,001 or more), a Ten (10%) percent tax will be levied at the source. If the capital is withdrawn before maturity, the interest portion from the total payable returned amount will be adjusted based on the annual rate in the table above. Since this scheme provides monthly profit payments, the highest profit rate applies to savings certificates held for five years. Therefore, if the investment is prematurely encashed, any excess amount already paid will be deducted from the principal. Read more: 3-Monthly Profit-Bearing Sanchayapatra in Bangladesh: Revised Profit Rates in 2025 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 10.23 percent at the end of the first year. There will be no tax at any source here. After the second year, this return will be 10.75 percent. By the third year, the interest rate will be 11.31 percent; after the fourth year, it will reach 11.91 percent. A 10 percent tax at source will be imposed on the profit upon completion of each year of cashing in investments between BDT 5 lakh 1 taka and 7 lakh 50 thousand (5,00,001 - 7,50,000 taka). The profit payable in case of withdrawal of the invested money at the end of the first year will be charged at a rate of 10.23 percent. After the second, third, and fourth years, the profit rate will be charged at 10.75 percent, 11.31 percent, and 11.91 percent respectively. Similarly, those who deposit capital exceeding BDT 7 lakh 50 thousand (7,50,001) taka will also have to pay 10 percent tax at source. For early encashment, the monthly return rate is set at 10.11 percent annually for the first year. It increases to 10.62 percent in the second year, followed by 11.17 percent in the third and 11.75 percent in the fourth year. Read more: Paribar Sanchayapatra 2025: Revised profit rates of Family Savings Certificate in Bangladesh Criteria to Avail the New Profit Rate Only those who purchase pensioner savings certificates on or after January 1, 2025, will receive profits at this revised rate. Who Qualifies for This Savings Plan? - Retired officers or employees of autonomous, semi-autonomous, government, and semi-government organizations- Retired Honorable Justices of the Supreme Court- Retired members of the armed forces- The deceased employee’s spouse, child, or children who have already received pension benefits Upper Threshold The combined provident fund and gratuity can be invested under a single name, at a maximum cap of BDT 50 lakh. Read more: Sanchayapatra interest rate revised: New profit rates of Bangladesh National Savings Certificate in 2025 Further Advantages - Option to withdraw profits every month  - Buyers have the flexibility to appoint a nominee  - In the event of the buyer's passing, the designated nominee can either encash the scheme or retain it until maturity to continue receiving monthly profits In a Nutshell Pensioner Sanchayapatra ensures a maximum profit rate of 12.55 percent at maturity for investments up to BDT 7,50,000. However, for amounts going beyond BDT 7,50,000, the net return rate is adjusted to 12.37 percent. In Pensioner Savings Certificates, no tax applies to the first 5 lakhs, while a 10 percent tax at source is imposed on any amount exceeding this limit. Additionally, early redemption this year provides more favorable returns than in previous periods. Read more: Sanchayapatra at Maturity: Encashment or Renewal of Bangladesh’s National Savings Certificate

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. Read more: 3-Monthly Profit-Bearing Sanchayapatra in Bangladesh: Revised Profit Rates in 2025 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. Read more: Paribar Sanchayapatra 2025: Revised profit rates of Family Savings Certificate in Bangladesh 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. Read more: Sanchayapatra interest rate revised: New profit rates of Bangladesh National Savings Certificate in 2025 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. Read more: Sanchayapatra at Maturity: Encashment or Renewal of Bangladesh’s National Savings Certificate 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. Read more: How to Buy Sanchayapatra in Bangladesh: A Beginner's Guide

The National Savings Scheme 2025 introduced notable changes across all savings certificates in Bangladesh that include the 3-month profit-bearing Sanchayapatra. It focuses on higher profit rates every 3 months for both maturity and early cash-out scenarios against various types of investments. On January 21, the National Savings Department's website disclosed details about tax deductions at source. This clarified the exact amount to be given on savings certificates at maturity or during early withdrawal. Let’s explore the new profit structure of the quarterly interest-bearing scheme.

As 2025 began, the National Savings Scheme introduced a revamped structure that substantially changed all savings certificates nationwide including the Paribar Sanchayapatra. These adjustments include an increase in both the investment limits and profit rates compared to previous years. On January 21, the National Savings Department updated its website with detailed information regarding the source tax applicable to these schemes. This update clarified the amounts payable to Sanchayapatra holders upon maturity and encashment. In this context, let’s go over the new profit structure of the widely favored Family Savings Certificate. Family Savings Certifi

With rising inflation driving up the cost of everyday necessities, managing regular expenses can feel overwhelming, let alone saving for the future. Yet, building a financial safety net is more crucial than ever. In 2025, saving money demands a smarter approach—streamlining expenses, boosting income, and maximizing financial efficiency. Discover actionable strategies to safeguard your finances and thrive in the face of economic challenges. Smart Money Strategies for 2025 Here are some practical steps to help you save more in the coming year. Set Attainable Financial Goals Make sure your financial resolutions don't fade away after the initial months of the new year. Setting smart goals can keep your financial resolutions fresh, strong, and versatile throughout the year. Defining short-term savings targets can help you to build an emergency fund. On the other hand, long-term savings targets can energize you to run the race for fulfilling your big dreams like buying an apartment, studying abroad, or making a retirement fund. Read more: How to Improve Focus by Training the ‘Attention Muscle’ Instead of burdening yourself with strict frugal behavior, it would be wise to set specific, measurable, achievable, relevant, and time-bound financial objectives to save money. Review Expenditure Generally, not all products or services you pay for are essential, some are less necessary, and few are luxury. Tracking your spending behaviour is an effective trick to set realistic saving targets. Don’t do calculations in your head. Write down the costs on paper. Utilizing a smart financial app or personal finance spreadsheets, one can easily identify one’s spending patterns. Control Expenses After reviewing your spending behaviour, you can easily understand where to retrench. For instance, saving money doesn’t mean you have to eat less and suffer from malnutrition; rather, it means cut costs on dinners outside that can be replaced by homemade meals. Read more: Shiny Object Syndrome in Business, Career: Symptoms, Effects, Prevention In the same way, you can be thrifty about your wardrobe. For example, caring for winter clothes can save your money from buying new shawls and sweaters every year. Nowadays, people tend to spend on digital products every month. However, cancelling unnecessary subscriptions reduces your expenses. Services you don’t use regularly should also be considered for discontinuation to save money. While shopping for groceries, try to shop for a month instead of a week, it can let you enjoy some discounts and cashback. Compare prices to find a nearby grocery shop, super shop, or market where you can find goods and products at reasonable prices. Growing vegetables on the rooftop or your balcony can also save you some money on groceries. What’s more, don’t forget to negotiate for lower rates on products and services. Read more: Top 10 Wallet Apps to Organize Finances Make A Budget Without a fixed weekly or monthly budget, it is hard to control costs in diverse sectors like grocery, clothing, travel, etc. Those who have spouses, children, elderly family members, or dependents need to consider all kinds of expenses while preparing the budget. While creating a budget for a month or week, you can implement the 50/30/20 rule which means allocate 50% for needs, 30% for wants, and 20% for savings and debt repayment. Grow Your Earnings Savings can be easier if you can boost your income. To increase earnings, service holders can look for additional income sources such as freelancing, tutoring, online business, etc.  Besides, you can learn new skills for better career opportunities or promotions. Nowadays, diverse international platforms and reputed universities are offering free and paid online courses. Read more: Using the 37 Percent Rule to Make Better Decisions in Life Furthermore, you can rent out unused assets, like a room or a car.  Automate Savings Even when setting clear financial objectives and budgets, you may forget to put money into your savings accounts for a number of reasons. To avoid this issue, you can opt for automatic transfer of funds to a high-yield savings account like DPS. Many reputed banks in Bangladesh offer such profitable DPS schemes that will automatically transfer a certain amount of money from your salary account to your DPS account each month. Minimize Loans & Debts Avoid taking on loans or debts unless necessary. The banks lure people to take credit cards and personal loans. Uncontrolled credit card spending can trap you in huge debts. To avoid this, you can follow your budget strictly and pay through cash. While taking personal loans, look for banks with lower interest rates and flexible repayment options. Avoid taking a new loan besides repaying your previous loan. To avoid loans, it would be wise if you can build savings for rainy days. Read more: Micro-acts of Joy: Secret to Being Happier and Healthier? Monitor and Adjust Regularly With time, your necessities, earnings, and spending behavior will change. In some months, you may fail to control expenditures due to unforeseen situations. Therefore it is necessary to review your budget and financial goals monthly. Adjust strategies based on life changes or new priorities. And, don’t forget to celebrate milestones to stay motivated. Conclusion Savings help you to be financially stable and independent. Not to mention, during hard times, like medical emergencies or unemployment periods, savings can give you financial protection and mental strength. However, saving money is a habit that requires determination and sacrifice. By implementing the above-mentioned strategies, you can significantly increase your savings in 2025 while building a stronger financial foundation. Read more: Top Strategies to Prepare for 2025: Start the New Year with Confidence and Purpose

Shanchayapatra or national savings certificate has long served as a reliable saving scheme, providing a dependable path toward financial stability for the people of Bangladesh. Upon reaching maturity, some holders may find it necessary to withdraw their funds, whether for personal expenses, medical needs, or investment opportunities. For others, however, the renewal option of their Sanchayapatra offers a chance to continue growing their savings. Let’s explore what steps to take when it reaches maturity. Sanchayapatra Encashment Process Completing the encashment of Sanchayapatra typically requires around 2 to 3 business days after maturity depending on the issuing bank. For certain banks, processing may even take a few additional days. Each bank maintains its unique form to carry out the process. The first step in withdrawing funds is to fill out a form. After completing it, the form must be manually signed and submitted to the branch of the bank from where the Sanchayapatra was purchased. Read more: Buying US Dollar Investment Bonds: A Comprehensive Guide for NRBs If the investor cannot appear at the bank or sign the form due to physical limitations, a nominee can carry out the procedure on his/her behalf. In such cases, the investor must provide a medical certificate that verifies their physical condition. In addition to the investor, the nominee may withdraw only the profit earned from the Sanchayapatra. However, this requires explicit written authorization from the investor, including their signature and a discharge of the profit coupon. The initial deposit value, however, cannot be accessed solely through an authorization letter or permit. For Sanchayapatra purchased online, this procedure becomes much simpler. This online context refers to the National Savings Scheme Online Management System. In this regard, Bangladesh Bank recently issued directives to all its branches and scheduled banks. The principal of Sanchayapatra bought via the system will be credited directly to the investor’s account upon the exact day of maturity. Read more: How to Buy Bangladesh Government Treasury Bond: Everything You Need to Know Additionally, any profits will be transferred in installments on schedule. All transactions will be processed through the Electronic Fund Transfer (EFT) system. It means neither the investor nor their nominee will need to visit the bank to receive the profits or maturity value. Sanchayapatra Renewal Process With the automation of the new system, paperwork-related complications are set to reduce significantly. Here are the updated renewal guidelines for Sanchayapatra as per the directives of Bangladesh Bank: - For Family Sanchayapatra, Three-Month Profit-Based Sanchayapatra, and Pensioner Sanchayapatra, only the original invested amount will be automatically reinvested.- For five-year Sanchayapatra and Post Office Sanchayapatra, both the principal and the profits will be automatically reinvested. Read more: Investment: What Factors to Consider before Investing Money? In these cases, the maximum investment limit will be applied from the date of reinvestment.Profits from Pensioner Sanchayapatra will now be disbursed monthly rather than quarterly. In a Nutshell The recent advancements in Shanchayapatra’s encashment and renewal processes offer a streamlined, hassle-free experience. By utilizing the National Savings Scheme's online management system, investors gain seamless access to renew or encash Sanchayapatra. Thanks to the EFT system, funds are deposited directly into the account on maturity day, eliminating the need for in-person visits or form submissions. With automatic renewal options, holders can effortlessly reinvest, avoiding administrative delays and potential complications. Together, these improvements ensure a smoother, more accessible experience for all Sanchayapatra holders. Read more: Is Sanchayapatra a Good Investment Read more: How to Buy Sanchayapatra in Bangladesh: A Beginner's Guide

At the dawn of another year, setting financial resolutions becomes crucial for a stable future. It can serve as a roadmap towards economic well-being, empowering individuals to manage money more effectively. Proper management of expenses aids in reducing debt, making savings, and creating new investment windows. Prioritising financial goals ensures a more organised and secure financial journey. Overall, it fosters the path towards achieving long-term aspirations. Let’s take a look at some practical resolutions to manage your finances in 2024. Top 10 Financial New Year’s Resolutions and Ways to Fulfil Them Creating a Budget and Sticking to It Creating a proper budget is key to managing money smartly. Try using apps or spreadsheets to split your money between what you need, what you want to save, and what you can spend on non-essential or luxury things.  By keeping a close eye on your spending and sticking to your budget, you can avoid spending money on things you do not need. It helps you keep your expenses within your budget. Read more: 10 Foods to Eat for Good Luck in New Year Practising Mindful Spending Being mindful about spending means making choices that align with your goals and it leads to a more stable financial future. It is very important to take a mindful approach to spending by thinking before you buy. Try to focus on what you truly need rather than what you want right now. You may consider if your purchase brings long-term benefits. This way of spending helps you control your money better and keeps you on track to reach your financial aims.  Paying off Debts and Loans One should make it a priority to clear off debts with high interest rates as they can weigh one down financially. For instance, credit card debt needs to be paid in due time to avoid fines. To repay big debts arranging money from savings or low-interest loans can be considered depending on the situation.  In the new year, one can prepare a repayment plan to settle all debts and get financial freedom. Read more: 5 New Year Resolutions that are actually achievable Building an Emergency Fund Life can surprise us, so it is wise to have a safety net for unexpected costs. Try to stash away money for an emergency fund that can cover living expenses for three to six months if needed. You may look into FD or DPS packages offered by different banks or financial institutions. This practice can help you save more money while making sure you can access them easily.  Whenever you hit a milestone on your savings journey, take a moment to celebrate your progress towards your financial safety net.

Recently a survey shows that a huge number of women have little or no money in their bank accounts. About 40% of women have $100 or less in their savings compared with 26% of men. As a woman do you ever think why it is tough for women to save more than men? Have you ever tried to overcome this challenge? If not, no worries. We are here to let you know the reasons and ways to change it. Why Can’t Females Make Good Savings Like Males? There might be many reasons why women became able to save less money than men. The survey shows about 40% of women are indifferent to reporting having less in their checking accounts. They allow easily having their minimum checking account balance reach $100 or less while not more than 28% of men do not permit to have such a low minimum balance. Secondly, usually, women earn less than men. So, naturally, they cannot save as much money as men can do. Moreover, in many societies the women need to leave work or jobs due to rear children or to take care of older family-members. Generally, men do not take these responsibilities.  So, it is clear that in general women are incapable of making good savings because they don’t get the scope to make a huge income from jobs, business or other sectors. Read 10 Greatest Female Entrepreneurs of the 21st Century On top of that, societies or families do not put as much emphasis on the income of women as they do in the case of men. Therefore, many young women may not feel the urge to save money.

The aim of any investment has always been to grow the initial capital. People invest hoping to double or triple their initial sum and get a substantial ROI. But investment strategies are not that simple. With the risks associated with investments, there are more ways to lose money than gain. This is where Sanchayapatra, the national saving scheme of Bangladesh is different. The scheme offers a secure haven for investment at flexible conditions and good returns on investment. What is Sanchayapatra? In short, Sanchayapatra is a national savings certificate. It is a saving scheme implemented by the government of Bangladesh through its different financial subsidiaries. In hindsight, the initial intention for introducing the savings certificate was different. Sanchayapatra was first introduced in 1972 against the backdrop of a war-torn economy. The government encouraged people to save money to finance deficient economic spending. The extra expenditure of the government was financed from the savings received against the issued certificate. Read Is Gold a Good Investment in 2022? Historically, Sanchayapatra provided a good ROI through its interest schemes. This has grossly motivated people to save more and more. And soon enough Sanchayapatra became one of the top investment schemes in Bangladesh. The government of Bangladesh introduced more and more saving schemes over the years. Currently, there are 11 different types of national saving schemes of which 4 are of different Sanchayapatra schemes. Read E-commerce Scams: Ways to Protect Your Investment from Online Frauds Types of Sanchayapatra There are a total of 5 different types of Sanchayapatra. The difference is based on benefits and heads who can apply. Each scheme is unique to its own and caters to its targeted audience. The 5 Year Bangladesh Sanchayapatra This Sanchayapatra scheme provides profit every 3 months. It has an investment cap of 30 lac for single applicants or 60 lac for joint applicants. It provides one of the highest interest rates at 10.75% in the 4th year with 11.28% on maturity. Small enterprise and provident funds do not have any investment cap within this scheme. 3 monthly Profit Basis Sanchayapatra The 3 monthly profit basis scheme has a 3 year maturity period. Just like the Bangladesh Sanchayapatra scheme, the individual investment cap is 30 lac whereas a joint investment has a cap of 60 lac. The scheme doesn’t allow organizations or provident funds to invest. The interest rate is 10.50% in the 2nd year with 11.04% payable on maturity. Read Investment: What Factors to Consider before Investing Money? Pensioner Sanchayapatra The pensioner Sanchayapatra is a 5-year investment with a 50 lac investment cap. A person has to be a retired government, semi-government, autonomous, or semi-autonomous official to be eligible for this scheme. The interest in the 4th year is 11.00% with an 11.52% interest payable at maturity. Poribar Sanchayapatra The Poribar Sanchayapatra is exclusively designed for adult Bangladeshi females. The investment cap for this scheme is 45 lac BDT. There is no option for joint investment in this scheme. The interest payable in the 4th year is 11.20% with 11.76% on maturity. Each of these schemes has a profit accrual period of 1-year. Meaning if the savings are withdrawn before the completion of the first year, the investor will not receive any form of profit. In addition to that, a standard 5% tax will be accrued on the profit. Read Investment Opportunities in Bangladesh amid Pandemic Pros of Investing in Sanchayapatra So, why should someone invest in Sanchayapatra? There are several reasons to justify the investment. Secured Saving Sanchayapatra is a national saving certificate meaning it is directly run by the government through its subsidiary, the Bangladesh post office. Being a national scheme, there aren’t any underlying security issues with this investment. an investor can stay worry-free that their investment is safe and secured. High-Interest Payable Sanchayapatra offers some of the highest interest payable on a fixed investment across any savings denomination in Bangladesh. The high-interest payable combined with the security offered by the government can be a huge motivator to invest in Sanchayapatra. Read Angel Investment 101: Is It the Right Track for Your Startup? Tax Rebates This is another benefit of investing in Sanchayapatra. At 25%, Bangladesh has a fairly high-income tax. However, the NBR allows for tax rebates on income invested on Sanchayapatra. Meaning a person is not only benefitting from the saving but are also getting a tax cut for doing so. Cons of Investing in Sanchayapatra While there aren’t any personal cons of investing in Sanchayapatra other than the investment getting locked in for a certain period, there is some negative implication for the overall economy of the country. Investment Diversion The high interest payable on Sanchayapatra has been heavily criticized considering it is over the inflation rate. The rate is not matched by private organizations or high-risk investment instruments like stocks. As a result, people are becoming more and more inclined to invest in Sanchayapatra compared to other heads of investment which is creating an imbalance in the economy. Read Investment Guide: How Bangladeshi Youths Can Invest money and Create Wealth? Added Liability for the Government The national savings certificate is essentially a scheme outlining a system where the government borrows from individual investors. With more and more Sanchayapatra being sold, the government liability is also increasing at an equal rate. And with the high return on the NSC, it might soon go out of hand and create a liquidity trap for the government. Organizations like CPD and IMF have suggested the government reduce the rate of return and sale of NSC and eventually phase them out in the near future. Should You Invest in Sanchayapatra in 2022? Sanchayapatra is the perfect savings choice for risk-averse investors. In recent years, the rate of return has been considerably reduced. Yet Sanchayapatra remains one of the highest returning individual options in Bangladesh. Along with the high return, capital security is also something that makes investing in Sanchayapatra a good decision. Even at a reduced rate, the economy will still take considerable time to properly pick up its pace from the economic downturn of the pandemic. Against its backdrop, Sanchayapatra can be a safe bet against volatile times. Read SM²: Bangladesh-Focused Seed Accelerator by SBK Tech Ventures, SOSV, Miaki Final Thoughts Though Sanchayapatra has a negative implication for the government liability and investment distribution within the economy, it is still a preferred investment mode for many. Considering the benefits, returns, and safety, investing in Sanchayapatra in 2022 is definitely on the cards for the veteran as well as first-time investors.

Investment is one of the best ways to increase your wealth. It’s a proven means to generate more money as well as a source of passive income for the investor. Compared to savings, the investment provides a higher return. However, a higher return comes with its own set of risks. If you aren’t careful enough, you might end up losing more money than making through investment. So how do you make sure your investment is safe? What are the things to be considered before investing? Let's find out. Why are you investing? Before anything else, you should find out the reason for investment. Savings are something that can work as your financial cushion. Investments are a bit different considering your money gets locked up for a considerable period. As a result, you should carefully evaluate whether you’ll have any immediate need for the money. You should also assess whether you want to make a short-term investment or a long-term one. Based on your investment period and the risk factors, your return will vary. Therefore you should be clear on your goals and strategies to make sure of the correct investment decision. Read: Investment Opportunities in Bangladesh amid Pandemic What should an investor consider when making an investment? Life stage Where are you in your life right now? This is an important factor many people ignore when investing. If you are a young professional with a steady income source, it becomes easier to take risks. However, if you are someone at a late stage of your life, or you are planning on child education support or retirement, it becomes increasingly difficult to make risk-related decisions. All of it depends on your commitments. Usually, it's ideal to invest at a young age where you will have sufficient time to turn things around in case anything goes south. The same doesn’t hold for someone who is investing their life’s saving at an old age. Read Investment Guide: How Bangladeshi Youths Can Invest money and Create Wealth? Time frame We have already talked about the ideal stage of your life for investment. But what is the ideal period for investment? Truth is, there is no fixed answer for this. You can invest for a long time or for a short time. The choice is yours. However, each short-term and long-term investment has its own perks. Long-term investments tend to generate a higher return. Short-term investments will give you profit much faster. If you are looking for long-term investment opportunities, you should consider stock and mutual funds. These are the best long-term investments out there. But if it’s short-term that you’re looking for, a fixed deposit can be a good option. Read Saving vs. Investing Money: Know the Pros and Cons Income or increment of capital Some people use investment as a steady source of income. Some invest to increase their existing capital. While both of these are meant to generate money for you, there are some subtle differences between them. Investments are through and through associated with risks. So if you are looking for a steady income source, the common investment strategies might not be a good option. You can invest in MIP, MIS, or fixed deposit as it will guarantee a return after a fixed interval. And if growing the existing wealth is your priority, you can consider investing in equity or real estate. Read:Real Estate Business in Bangladesh is booming again overcoming the brunt of Pandemic Return on your risk Depending on your investment strategy, risks will vary. There are countless streams of investment that will provide you with more return than the usual interest on your savings. However, the more the return there are, the merrier the risk will be. If you are someone willing to play in a high-risk scenario, you can consider investing in equity-related investment strategies. If you want a quick return on your investment, there are high-risk bonds. As long as you are willing to play on the market fluctuations, you can be sure to make a good return on your investment. Read: F-commerce in Bangladesh: Problems and Prospects State of taxation Many people don’t consider the tax burden that comes along with investment. As you start receiving a return on your investment, the tax will start to add up on your investment. However, there are different tax waivers and rebates associated with investments. The only downside of the waiver is that there is a minimum lock-in period of investment. Depending on the investment strategy, the lock-in period can be as high as 10 years. So you should be careful before choosing an investment strategy as it can effectively lock you out of your capital for a long time. Read Angel Investment 101: Is It the Right Track for Your Startup? Liquidity of the investment In layman’s terms, ‘liquidity’ is the state of how soon an asset can be sold off in the market in exchange for a good return. Risks on investment are directly associated with the liquidity level of any asset. The more the liquidity, the lesser the risk, and the lesser is the return. If you are someone looking for an easy investment scheme without having to worry much about capital loss, then you should invest in high liquidity assets. But if you are a risk-taker looking to make a good profit out of your investment, then you should go for low liquidity assets. Read Investing in startups second innings of Sachin Tendulkar's life Emergence Capital The last factor here isn’t directly related to investment; rather it’s a precautionary measure for you. Investments are high-risk games no matter how you look at them. There’s no guarantee that you will end up losing all your investments in a matter of hours or days. There might be situations where you will have an emergency need for funds but you won't be able to access them because of lock-in periods or losses. The ideal approach would be to set up an emergency capital fund before you embark on investments. This will not only cushion you against any investment-related drawbacks but will also be a source of capital for future use. No matter how you use it, an emergency fund can always be your plan B. Read:ToguMogu: One Stop Solution for Bangladeshi Parents Bottom Line Investments aren’t for everyone. But if you are willing to take the risk, you can be sure to make a good return out of it. But for that, you will need careful planning and consider your options. In this article, we have discussed the key factors to consider before making investment decisions. We hope our discussion will help you to lay the groundwork for your investment options and make a good fortune in the process.