National Savings Certificate (Bangladesh)

National Savings Certificate in Bangladesh encompasses different types of savings schemes operated by National Savings Department, Bangladesh. It is supervised by Internal Resources Division of Ministry of Finance of Government of Bangladesh. Every year the profit margins of these schemes are declared after cutting the 5% source tax. These certificates are sold and encased in the post offices in Bangladesh.
Schemes under National Saving Certificates.
Key schemed under National Saving Certificates are as follows,
Criticism.
It has been pointed out that NSCs (National Saving Certificates) give returns significantly higher than the banks considering inflation. This discourages the people from investing in high risk instruments like stocks. There is a general concern that high return rate in NSCs along with rise in number of investors will cause a significant liability to the government. The Centre for Policy Dialogue (CPD) has asked interest rate to be decreased on saving certificates and the International Monetary Fund (IMF) have asked the government to eventually phase them out.
With increase in pension of the government employees, National Savings Department proposed to increase the maximum limit for investments in the pensioner saving certificates. This move has been criticized as unjust for the employees retired from the private organizations.