Yield rates on state-run savings tools, ideally designed for helping pensioners, elders and widows, have been cut although their shines are already dim for low returns.

The government revised downward the yield rates on savings certificates under the Department of National Savings with effect from July 1 and applicable for the next six months through December 2025, according to a notification issued Monday by the Finance Division.

The tightfisted stance is likely to negatively impact fixed-income groups, particularly elderly citizens and widows, who rely heavily on returns from such savings to meet their daily expenses -- especially amid persistently high inflation.

The reductions are seen as part of broader government efforts to manage interest expenditures and align public savings instruments with cautious monetary-policy trends.

However, the cutbacks may dissuade small savers from investing in government-backed schemes, especially those with no access to high-yield alternatives like stocks or corporate bonds.

Economists warn that the squeeze in returns comes at a time when inflation continues to erode real incomes, making it even harder for vulnerable groups to maintain their standard of living.

Officials at the Finance Division said the yield rates "will be reviewed again in January 2026, depending on inflationary trends and fiscal pressures".

For the 5-Year Bangladesh Savings Certificate, first slab (up to Tk 750,000), new annual yield is 11.83 per cent and second slab (additional investments) revised yield 11.80 per cent , down by three basis points from 11.83 per cent.

First-year effective yield, previously 10.13 per cent, is now revised to 9.74 per cent for the product. Second-slab yield is revised from 10.11 per cent to 9.72 per cent.

The 3-Monthly profit-based savings certificate: first-slab annual yield is 11.82 per cent, down from 12.10 per cent in earlier reviews.

Second slab is revised to 11.77 per cent

Pensioner savings certificate's first-year returns are slashed from 10.23 per cent to 9.84 per cent and second slab reduced from 10.11 per cent to 9.72 per cent.

Family Savings Certificate (Paribar Sanchaypatra) first-year yield declines from 10.20 per cent to 9.81 per cent. Second slab sees cut from 10.11 per cent to 9.72 per cent.

Post Office fixed deposit's first-year returns (first slab) are lowered from 11.00 per cent to 10.65 per cent, while second slab reduced to 10.60 per cent.