State-owned Janata Bank Limited has cut interest rates for two of its deposit schemes.
A recent circular of the bank’s Business Development and Marketing Department said those who would deposit money under its Double Benefit Scheme (DBS) and Monthly Benefit Scheme (MBS) from Aug 5 will get 10.79 percent and 12 percent compound interest respectively.
A 12.63 percent compound interest was previously offered under DBS, which would double the amount deposited in six years. But it would take seven years for the deposited amount to double under the new interest rate.
The bank used to offer a 13.46 percent simple interest under MBS.
However, the new rates will not be applicable to those who had taken the schemes before the date.
A Janata Bank official, who preferred anonymity, told bdnews24.com increased deposit flow and better market condition influenced the decision.
Officials said there was surplus liquidity in the banking sector as there was not much demand for loans. Also, the banks are not getting good investment opportunities, they said.
As a result, the banks were not that keen to collect deposits and that is why many banks are cutting down rates, officials said.
Source: bdnews24
