Savings Certificates or FDRs – Where Should You Invest?

Staff Reporter | Dhaka | 16 September 2025, Tuesday

I

n Bangladesh, savings certificates and Fixed Deposit Receipts (FDRs) are two of the most popular safe investment options. However, each comes with different features, benefits, and risks.

🔹 Savings Certificates

• Suitable for long-term, secure investments.
  
• Guaranteed by the government.
  
• Principal and interest are returned at maturity.
  
• Interest rates vary depending on the term (generally 5–7% per year).
  
• Tax benefits may be available under certain conditions.
  
  

🔹 Fixed Deposit Receipts (FDRs)

• Bank deposits, usually for short to medium terms.
  
• Interest rates may be slightly lower than savings certificates but remain safe.
  
• Early withdrawal before maturity can reduce interest earnings.
  
• Convenient if liquidity is required.
  
  

Investment Advice:

• For long-term secure returns, savings certificates are ideal.
  
• For short- to medium-term investments and liquidity, FDRs are more convenient.
  
• To minimize risk, a combination of both can be considered.
  
  

Economists recommend considering personal financial goals, cash flow needs, and market conditions before making any investment decisions.