Govt hikes interest rates for dollar bonds

The government has increased the interest rates by up to 2 percentage points on investments in two US dollar related bonds to encourage non-resident Bangladeshis to boost inward inflow of the American greenback.

The Internal Resources Division of the finance ministry today restructured the interest rate of the US Dollar Premium Bond and US Dollar Investment Bond, both of which have three years tenure.

For investments of up to $100,000 on US Dollar Premium Bond, the interest rate will be 6.5 percent for encashment after a year.

For encashment after the second year, the rate will be 7 percent and after third year it will be 7.5 percent.

Previously, the interest rates hovered between 4.5 percent and 5.5 percent.

For investments of over $100,000 to $500,000 on US Dollar Premium Bond, the interest rate will be 5 percent, 5.5 percent and 6 percent respectively.

The rates will hover between 4 percent and 5 percent for investments of over $500,000 on the bond.

In case of $100,000 investment on US Dollar Investment Bond, the rates will start at 5.5 percent and will be as high as 6.5 percent considering the period of encashment.

The rates will hover between 4 percent and 5 percent for $100,001 to $500,000 investment on the investment bond.

For investments of over $500,001 in the US Dollar Investment Bond, the interest rates will be 3 percent, 3.5 percent and 4 percent considering the period of encashment.

Previously, the interest rates were ranging 4 percent to 5 percent.

The interest rate on the investments up to $500,000 will be ranging 4 percent to 5 percent, up from 3 percent to 4 percent.

The interest rate on the investments above $500000 will be ranging 3 percent to 4 percent, up from 2 percent to 3 percent.