How to benefit from saving certificates 

For retirement security, some people keep their money in bank deposits, while others invest in land. Many, however, look for an investment option that offers relative safety and a regular stream of income at predetermined intervals. For such investors, government savings certificates, commonly known as Sanchayapatra, have long been a familiar choice in Bangladesh.

Among the available schemes, which is more profitable: the five-year Bangladesh Savings Certificate, the three-monthly profit-bearing Savings Certificate, the Family Savings Certificate or the Pensioner Savings Certificate? Which scheme provides monthly returns? Who is eligible to purchase each certificate?  

And what benefits can investors expect from investing Tk 100,000, Tk 500,000 or Tk 1 million? These are some of the questions that potential investors frequently ask.

In reality, not every savings certificate is suitable for everyone. Some schemes are designed to provide regular income, others are intended for long-term savings, while certain schemes specifically address the financial security needs of eligible individuals after retirement. Therefore, choosing a savings certificate based on one's financial needs and eligibility, rather than focusing solely on the profit rate, is a prudent approach.

For investors who need a regular income from their investments to meet household expenses, the frequency of profit payments is particularly important. In this regard, the Family Savings Certificate and the Pensioner Savings Certificate are two options worth considering. Subject to the applicable eligibility requirements and rules, both schemes offer monthly profit payments.

The three-monthly profit-bearing Savings Certificate, on the other hand, pays profit every three months. Meanwhile, the five-year Bangladesh Savings Certificate may be suitable for investors who intend to keep their money invested for a relatively long period.

In other words, a person who needs additional income every month to cover household expenses may prefer a different scheme from someone who plans to use a larger sum of money in the future.

For long-term savings, investors can set a specific financial goal and choose an investment accordingly. However, anyone who anticipates needing the money before the completion of the five-year term should carefully examine the rules governing premature encashment before making a decision. This is because investors who cash in their certificates before maturity do not receive the full profit applicable to the entire term.