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Net sales of national savings certificates recorded a steep 86.3 per cent year-on-year decline in August 2025, as tighter liquidity conditions and rising living costs dampened small investors' interest in government savings instruments.
According to the Bangladesh Bank (BB) data, the net sales of savings certificates dropped to Tk 2.79 billion in August this year from Tk 20.36 billion in the same month a year earlier.
Net sales of savings certificates are calculated by deducting repayments against earlier investments from fresh sales.
The net sales of savings instruments also dropped sharply to Tk 12.93 billion in July 2025 from Tk 21.87 billion in the corresponding month last year, reflecting a year-on-year (YoY) fall of about 41 per cent, according to the BB data.
During July-August of FY26, total net sales stood at Tk 15.72 billion, down by 62.8 per cent year-on-year from Tk 42.24 billion in the corresponding period of FY25.
The total outstanding balance of savings tools also declined to Tk 3.40 trillion in August 2025, compared to Tk 3.50 trillion a year earlier - a 2.9 per cent decrease.
Still, the central bank's latest data show the total outstanding balances of savings instruments stood at Tk 3.40 trillion in July 2025, down from Tk 3.48 trillion a year earlier, a 2.3 per cent decline.
Despite this setback, the fiscal year 2024-25 (FY25) showed some recovery compared to the previous year. Net sales closed FY25 with a negative balance of Tk 60.63 billion - an improvement from the Tk 211.24 billion deficit posted in FY24.
Economists and analysts said the sharp fall in sales reflects the government's cautious borrowing approach through savings instruments and the impact of high inflation on households' disposable income. Many small investors are reportedly encashing matured certificates to meet consumption needs rather than reinvesting.
"The 86.3 per cent fall in August shows how inflation and reduced yields are reshaping household savings behaviour," said Dr M Masrur Reaz, chairman of Policy Exchange Bangladesh. "More people are encashing than reinvesting, weakening a traditional source of government financing."
Dr Reaz noted that aligning savings schemes with tighter monetary policy makes macroeconomic sense but could push savers into riskier or informal channels. He suggested developing a longer-term strategy to mobilise household savings by strengthening capital markets and diversifying investment products beyond traditional certificates. He also pointed out that while digitalisation has improved transparency, small savers less comfortable with online systems may have been discouraged.
The government introduced the "National Saving Certificates Online Management System" in 2019, making e-TIN and national ID cards mandatory for investors.
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