Boost in Interest Rates for U.S. Dollar Premium and Investment Bonds
Ministry of Finance Announces Revised Interest Rates for Dollar Bonds
In a recent announcement from the Internal Resources Division of the Ministry of Finance, it has been revealed that there has been an increase in the interest rates for U.S. Dollar Premium and Investment Bonds.
According to the information provided in the announcement, the interest rates for U.S. Dollar Premium Bonds have been redefined as follows: for investments up to $100,000, a competitive 6.50% for the first year, 7% for the second year, and 7.50% for the third year. Investments ranging from $100,001 to $500,000 will enjoy 5% for the first year, 5.50% for the second year, and 6% for the third year. Beyond $500,000, the rates are set at 4% for the first year, 4.50% for the second year, and 5% for the third year.
Similarly, the interest rates for U.S. Dollar Investment Bonds have been adjusted to 5.50% for the first year, 6% for the second year, and 6.50% for the third year for investments up to $100,000. For investments ranging from $100,001 to $500,000, the rates are 4% for the first year, 4.50% for the second year, and 5% for the third year. Investments beyond $500,000 will attract rates of 3% for the first year, 3.50% for the second year, and 4% for the third year.
The announcement also includes specific conditions, such as the requirement to determine the total investment in conjunction with previous investments before applying the new profit rates. Additionally, the profit rates for the two schemes will be calculated in U.S. dollars, and all transactions related to these schemes will be reported in return in the Bangladeshi currency.
It is noteworthy that previously, there were no upper limits for investments in foreign bonds. However, on December 3, 2020, through a directive, three types of bonds were unified, and a consolidated investment limit of one billion Bangladeshi Taka was set. Despite a reduction in interest rates on various bonds last year, the limits for investments in U.S. Dollar Premium and Investment Bonds were maintained, aligning with the global standards. The move to increase interest rates on Sunday indicates a positive turn in this trend.
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