BB orders banks to continue selling savings certificates amid growing complaints

Bangladesh Bank has directed all scheduled banks to continue selling government savings certificates and ensure that customers are not discouraged from investing in the instruments, following a surge in complaints that banks were refusing or delaying such sales.

In a circular issued on Wednesday by the central bank’s Debt Management Department, managing directors and chief executive officers of all scheduled banks were instructed to maintain uninterrupted savings certificate services and promptly address customer grievances.

The move comes after numerous complaints surfaced on social media and through customer channels alleging that several banks, despite being authorized sales agents, were discouraging clients from purchasing savings certificates through cumbersome procedures and administrative hurdles.

“Recent complaints from customers indicate that some scheduled banks are discouraging investment in savings certificates through various means, despite being listed as authorized institutions for their sale,” the central bank said in the directive.

Bangladesh Bank reminded lenders that, under the Savings Certificates Rules, 1977, banks designated as issuing offices are obligated to provide full support to investors seeking to purchase savings certificates. 

The regulator also instructed banks to regularly monitor branch-level operations related to savings certificates and ensure a high standard of customer service.

The circular further asked banks to prominently display complaint submission procedures at branches and take swift action on any grievances raised by customers.

The directive highlights the government's continued reliance on national savings instruments as a key source of domestic borrowing while also providing a secure investment avenue for households, retirees and small savers. Savings certificates remain particularly popular among middle-income families seeking returns higher than those available on most bank deposits.

Currently, the National Savings Directorate offers four types of savings certificates: Family Savings Certificate, Pensioner Savings Certificate, Five-Year Bangladesh Savings Certificate and the Quarterly Profit-Based Savings Certificate. With the exception of the Family Savings Certificate, both individuals and institutions are eligible to invest in these instruments.

Depending on the scheme and maturity period, savings certificates currently offer returns ranging from 11.77% to 11.98%, making them among the highest-yielding government-backed savings products in the country.

Savings certificates are sold through both the National Savings Directorate and authorized scheduled banks. The latest directive signals the central bank's intent to ensure uninterrupted access to the instruments and prevent any practices that could undermine investor confidence in government savings schemes.