Treasury bill-bonds are earning more profits than banks

Government debt has increased from non-banking sector instead of banks. The government borrows from the non-banking sector by keeping treasury bills and bonds. If you invest in bills and bonds, you are getting good profits now. As a result, investing in treasury bills and bonds has become much more profitable than keeping money in banks.

According to Bangladesh Bank data, the interest rate on the two-year bond exceeded 11 percent for the first time. Last Wednesday, the interest rate of this bond was 11.60 percent. Apart from this, the interest rate of 91-day treasury bill was 11.15 percent in the auction held in Bangladesh Bank last Thursday, which was 6.75 percent in June last year.

Besides, the interest rate on 182-day treasury bill has increased to 11.20 percent, which was 7.05 percent last June. And the interest rate on 364-day treasury bills has increased to 11.50 percent, which was 7.75 percent last June.

However, to invest in treasury bills and bonds, separate accounts should be opened in banks and financial institutions. The bank or financial institution will buy the bill or bond on behalf of the individual. Institutional investment in bills and bonds has increased recently as interest rates have risen. Besides, the interest of investing in this sector is increasing at the individual level.

With the current upward trend in inflation, a large portion of people's income is being spent on living expenses. If you have some money after dealing with increased spending pressure, save it. A part of the savings is invested in various sectors including banks. But security of money has become important now along with the hope of good return on investment.

Because many invest in cooperative societies, MLM companies like Destiny and some financial institutions hoping for high interest but not getting returns. Again, due to the minimum price level or floor price set by the regulatory body BSEC, the recession has been going on in the capital market for a long time. In such a scenario, Treasury Bills-Bonds have become an alternative investment source for safe and good returns.
At present, the interest rate of bank loans is fixed depending on the treasury bills. The method by which interest rates are determined now is called SMART or Six-Month Moving Average Rate of Treasury Bills. Bangladesh Bank informs the banks of this rate at the beginning of every month. The smart rate was 7.43 percent in November, which increased to 8.14 percent in December. Banks can add interest up to 3.75 percent with smart interest rates.

Known as one of the leading safe investment sectors in the country, the five-year Bangladesh Savings Account has an interest rate of 11.28 percent. The interest rate on profit-based savings bonds for three months is 11.04 percent. 11.52 percent profit at the end of tenure on Family Savings Account.