No service charge on savings up to Tk10,000: Bangladesh Bank

Bank account holders no longer have to pay any service charge against their savings up to Tk10,000 – up from the previous ceiling of Tk5,000.  

The rule will remain in force for the period of six months, meaning the banks will realise service charge twice a year.

The Bangladesh Bank's Banking Regulation and Policy Department issued a circular in this regard on Thursday which has been sent to the chief executive officers of all the banks.

As per the circular, the account holders have to pay Tk100 against their savings, ranging from Tk10,000 to Tk25,000.  

Against savings ranging from Tk25,000 to Tk2 lakh, the customers have to pay Tk200 as service charge instead of Tk500.

On the investment from Tk2 lakh to Tk10 lakh, the savers have to pay Tk250 as service charge. If the amount is more than Tk10 lakh, the service charge will be Tk300.

The central bank has taken the initiative to increase deposits in the banking sector and to encourage small savers to invest in the banks, said the circular.

Moreover, the service charge against a current account has been fixed at Tk300 instead of Tk500.

The flow of deposits increased in the banks in August. The deposit growth registered 11.39 percent year-on-year in August, compared to 10.66 percent in the previous month.

Previously, deposit growth had been stuck between 9 and 10 percent since December last year, according to central bank data.

The total deposits stood at Tk1,080,000 crores in August.