From the beginning of early civilization, people have had the tendency to save things for the crisis period. The legacy of this tendency turns into saving money for the upcoming future with an extra income as a form of interest or profit. In view of that bank is the right option. Bank provides security to the people’s hard-earned money, side by side providing a handsome amount of interest or profit in turns of that deposit. However, all banks are not providing the same types of opportunities to the stakeholders or customers. That is why customers are always in search of banks that are providing relatively higher rates of interest. Among the bank’s deposit products Fixed Deposit is the most familiar and popular. Fixed Deposit Interest rate is comparatively higher than other deposit products offered by Bangladeshi banks.
Government and private commercial banks have different schemes of deposit for their customers. The customer has to select profitable deposit accounts for them. Popular Deposit schemes of different Banks are:
01. Deposit Pension Scheme.
02. Fixed Deposit Scheme.
03. Double Benefit Deposit Scheme.
04. Monthly Profit based Deposit Scheme.
05. Special Notice Deposit.
06. Saving Deposit Scheme.
Deposit Pension Scheme is one of the most popular schemes of banks though it has separate names in different banks. Deposit pension schemes are mainly operated for 3 years to 10 years according to customer’s choice. Its monthly deposit amount started from 500/- to 30000/- but it may vary from bank to bank. Generally, banks give interest to their customer monthly, quarterly, half-yearly and yearly basis. Banks provide interest on the basis of the tenure of the scheme. High tenure gets a comparatively higher rate.
But the most popular deposit scheme is Fixed Deposit Scheme which offers the highest rate of interest or profit in comparison to other deposit schemes. People can deposit for 01 month to 03 years or above.
Now banks are offering for Fixed Deposit Scheme from 1% to 6% for different tenures. According to the report of last of August 2021, some banks are offering the highest 8% interest or profit on the Fixed Deposit Scheme. Earlier people get up to 13% interest or profit on their deposit. But in the year 2020 government fixed the deposit and lending rate of 6% to 9%. From then banks are supposed to give interest or profit within the limit of 9%.
Here we know about the Fixed Deposit Interest rate offered by different banks:
In our country, there are 61 scheduled banks that are operated under the direct supervision of the Bangladesh Bank. They are divided into the following types;
1. State-Owned Commercial Banks (SOCBs).
2. Specialized Banks (SDBs).
3. Private Commercial Banks (PCBs).
Private Commercial Banks are divided into two segments;
i. Conventional Private Commercial Banks &
ii. Islami Shariah based Private Commercial Banks.
4. Foreign Commercial Banks (FCBs).
Fixed Deposit Interest rate offered by Government Banks:
There are nine banks who are directly controlled and supervised by the government and Bangladesh Bank. Among them, 06 are State-Owned Commercial Banks (SOCBs) and 03 are Specialized Banks. Namely Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, BASIC Bank, BDBL and RAKUB, PKB, BKB. These bank offers 3% to 9% interest rate to its customer.
Sonali Bank fixed deposit interest rate: (Subject to change as per bank decision.)
Serial no. | Scheme Description | Rate of Interest or Profit |
01. | For 03 Months to less than 06 months | 5.60% |
For 06 Months to less than 01 Year. | ||
For 01 Year to above but less than 03 Years. |
Agrani Bank’s Fixed Deposit Scheme rate: (Subject to change as per bank decision.)
Serial no. | Scheme Description | Rate of Interest or Profit |
01. | For 03 Months to less than 06 months | 5.00% |
For 06 Months to less than 01 Year. | 5.25% | |
For 01 Year to above. | 5.50% |
Rupali Bank’s Fixed Deposit Scheme rate: (Subject to change as per bank decision.)
Serial no. | Scheme Description | Rate of Interest or Profit |
01. | For 03 Months to less than 06 months | 5.60% |
For 06 Months to less than 01 Year. | ||
For 01 Year to above. |
Other State-Owned Commercial Banks (SOCBs) are providing nearly the same rate of interest or profit on Fixed Deposit Scheme. But Specialized Bank Rajshahi Krishi Unnayan Bank (RAKUB) offers the highest rate of interest or profit on Fixed Deposit Scheme but unfortunately, this is for the people of the Rajshahi area only.
Rajshahi Krishi Unnayan Bank’s (RAKUB) Fixed Deposit Scheme rate: (Subject to change as per bank decision.)
Serial no. | Scheme Description | Rate of Interest or Profit |
01. | For 03 Months to less than 06 months | 4.00%-5.50% |
For 06 Months to less than 01 Year. | 5.50% | |
For 01 Year to 03 Years. | 5.75% | |
For 03 Years to above. | 6.00%-9.00% |
Fixed Deposit Interest Rate offered by Conventional Private Commercial Banks:
In our country, to date, there are functioning 43 Conventional private commercial banks. They are offering 01 month to 03 years and above tenure of Fixed Deposit Scheme for people. And for that, they give 2% to 8% of interest or profit on Fixed Deposit Scheme. Some Conventional Private Commercial Banks are offering special rate depending on the amount of deposit. Some are categorizing rates of interest or profit on individual or institutional deposits.
Bangladesh Commerce Bank Limited, National Bank Limited, Meghna Bank Limited paying up to 6% interest for 03 Months Fixed deposit Scheme.
Pubali Bank Limited paying 5.60% for 03 three months for individuals and 3.75% for institutional deposit.
Uttara Bank Limited offers 5.56% for 03 Months to less than 06 months, 5.60% for For 06 Months to less than 01 Year and 5.65% for For 01 Year to 05 Years.
5% to 5.50% interest is given by Arab Bangladesh Bank Limited, IFIC Bank Limited, NRB Bank Limited, NRB Commercial Bank Limited for three months.
Among the Conventional private commercial banks, BRAC Bank Limited and Dutch-Bangla Bank Limited offer lowest rate they are paying 2% to 2.5% interest or profit in three months.
Fixed Deposit Interest rate offered by Islami Shariah based Private Commercial Banks:
We have 10 Islami Shariah based Private Commercial Banks namely: Union Bank Limited, Social Islami Bank Ltd., First Security Islami Bank Limited, Global Islami Bank Limited, Shahjalal Islami Bank Limited, Islami Bank Bangladesh Ltd., ICB Islamic Bank Ltd., Bank Al-Falah Limited, Al-Arafah Islami Bank Limited, Standard Bank Limited. They are offering a 4% to 5.50% rate of interest or profit on Fixed deposit Scheme.
Fixed Deposit Interest rate offered by Foreign Commercial Banks:
We have nine Foreign Commercial banks in our country but they are interested in customer deposit. Hence, they didn’t offer a high rate of interest or profit on Fixed deposit Scheme. Most of the foreign commercial banks are offering 2% to 3% rate of interest or profit on a Fixed deposit Scheme. Among them, Habib Bank offers the highest rate of interest or profit of 5.50% on the product of 03 Years and above. And the lowest rate of interest or profit is given by Citibank N.A at the rate of .10%. State Bank of India is giving 3% to 5% for 03 months Fixed deposit Scheme.
Due to the surplus liquidity of banks as COVID-19 effect, government rules of 6%-9% rate Banks are bound to reduce their deposit rate. Depositors are the lifeblood of the banking sector. But now their interest on the deposit is very low. They didn’t get their deemed interest rate or profit. As a result, they are reluctant to deposit in Banks. Banks may face this consequence in near future.