For low- and middle-income families, government savings certificates have traditionally been a reliable means of savings.
Returns from these instruments often serve as an important supplemental source of income during emergency situations, including medical needs or rising household expenses.
Government data shows that people are not only buying fewer savings certificates, but also selling certificates already purchased to meet rising household expenses.
Zakir Hussain works in a housing company. His son has taken admission in American International University-Bangladesh this month.
Approximately 150,000 taka were required for the admission process. Since he did not have enough cash, he encashed a savings certificate worth 100,000 taka.
“I bought a family savings certificate worth Tk 100,000 in my wife’s name three years ago, thinking I might need the money for my son’s admission. Now I have encashed it to arrange the admission fees,” Zakir Hossain told Prothom Alo.
Salma Alam, a resident of Mohammadpur in the capital and a bank officer, had bought a flat two years ago by taking a loan from the bank. At that time, he encashed a savings certificate of 500,000 taka registered in his name to meet expenses.