Need to open a fixed deposit bank account? Or are you worried about the bank interest rate in Bangladesh? Worry not, this article will help you.
Let’s get an overview of the bank interest rate in Bangladesh and know which bank offers the best interest rate in the following section.
What actually is a deposit interest rate?
The first thing that comes to mind when you hear the term “interest rates” is usually the costs associated with borrowing money. On the other hand, you also have the chance to make money with the deposit interest rate.
The deposit interest rate is the rate at which you get money from a bank in exchange for your deposits in an interest-bearing account.
Standard quotes for the deposit interest rate use an annual percentage yield (APY). A different way to think of them is interest and return rates.
Furthermore, a percentage of the principal balance in your account determines how much money you will make. And people compare with different banks to get the highest rate to obtain more on their money.
PCBs with higher deposit interest rates in Bangladesh
In case you want to compare all the PCSs (Private Commercial Banks), here is a list below containing 35 banks. These banks are offering higher interest in comparison. So, have a look at the table to identify the best option.
| Banks name | 3 months but<6 months (%) | 6 months but<1 year (%) | 1 year but<2 years (%) | 2 years but<3 years (%) | 3 years and above (%) |
| AB Bank | 5.60 | 5.60 | 5.75 | 5.60 | N/A |
| Al-Arafa | 3.25-5.60 | 4.00-5.60 | 4.00-5.60 | 4.00-5.60 | 4.00-5.60 |
| BANK ASIA | 2.50-5.50 | 4.00-5.50 | 4.00-5.50 | 4.00-5.50 | 4.00-5.50 |
| BCBL | 6.00 | 6.00 | 6.00 | ||
| Bengal | 4.75-5.60 | 5.00-5.60 | 5.00-5.60 | 5.00-5.60 | 5.00-5.60 |
| BRAC | 4.00-5.60 | 5.00-6.00 | 5.55-6.00 | 5.55-6.00 | 5.55-6.00 |
| CBBL | 4.00-6.00 | 4.00-6.00 | 4.50-6.00 | 4.50-6.00 | 4.50-6.00 |
| DHAKA | 4.00-5.60 | 4.00-5.60 | 4.00-5.60 | 4.50-5.60 | 6.21 |
| EXIM | 5.50-5.75 | 5.75-5.90 | 5.90-6.00 | 5.90-6.00 | 5.90-6.00 |
| FIRST SECURITY | 5.60 | 5.60 | 5.60-5.75 | ||
| GIBL | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 |
| ICB | 5.60-6.00 | 5.60-6.00 | 6.00 | 6.00 | 6.00 |
| IFIC | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 |
| ISLAMI | 5.44 | 5.45-5.46 | 5.46 | 5.47 | 4.60-6.25 |
| MDBL | 4.25-5.75 | 4.25-6.00 | 4.00-6.10 | ||
| MERCANTILE | 4.25-5.60 | 4.50-5.60 | 4.75-5.60 | 4.75-5.60 | |
| MGBL | 5.75-6.00 | 6.00-6.25 | 6.00-6.50 | 5.75-6.75 | 5.75-6.75 |
| MMBL | 4.50-5.60 | 4.75-5.60 | 5.00-5.60 | ||
| MUTUAL TRUST BANK | 3.50-5.75 | 4.00-5.60 | 4.00-5.60 | 4.00-5.60 | 4.00-5.60 |
| NBL | 5.50-5.60 | 6.00 | 6.00 | 6.00 | 6.50 |
| NCCBL | 3.75-5.60 | 3.75-5.60 | 4.00-5.60 | 5.00-5.60 | 5.00-5.60 |
| NRBBL | 5.60-6.00 | 5.60-6.00 | 5.25-5.60 | 5.00-5.60 | |
| NRBCBL | 5.60 | 6.00 | 6.00 | 6.00 | 6.00-6.25 |
| ONE BANK | 4.00-5.56 | 4.25-5.56 | 4.50-5.56 | 4.50-5.56 | 4.50-5.56 |
| Padma | 6.25-7.00 | 6.50-7.25 | 7.00-8.50 | ||
| PREMIER | 4.50-6.00 | 4.50-5.70 | 4.50-6.50 | 4.50-5.75 | 4.50-5.75 |
| PUBALI | 3.75-6.00 | 4.00-6.00 | 4.00-6.00 | 4.00-6.00 | 4.00-7.18 |
| SBACBL | 4.00-6.50 | 5.50-7.00 | 5.00-9.00 | 5.00-9.00 | 5.00-9.00 |
| SHAHJALAL | 4.00-5.60 | 4.00-5.70 | 4.00-5.70 | 4.00-5.70 | |
| SIBL | 3.00-5.60 | 5.60-5.75 | 5.75-6.00 | ||
| SOUTHEAST | 4.00-5.60 | 4.00-5.60 | 4.00-5.60 | 4.00-5.60 | |
| STANDARD | 4.25-5.55 | 4.50-5.55 | 4.75-5.55 | 5.50-5.55 | |
| UCBL | 3.75-5.60 | 3.75-5.60 | 4.00-5.60 | 4.50-5.60 | 4.50-5.60 |
| UNBL | 6.00 | 6.00-6.25 | 6.00-6.25 | 6.00-6.25 | 6.00-6.25 |
| UTTARA | 4.00-5.50 | 4.25-5.60 | 4.50-5.65 | 4.50-5.65 | 4.50-5.65 |
What is the highest interest rate in Bangladesh
Currently, the average deposit interest paid by commercial banks to individuals or corporations is 5.05%. But previously it was 6.07%.
The highest interest rate in Bangladesh was in 1991, which was as high as 12.05%. And the average highest is 9.10% from 1980 to 2021.
How to Calculate the Interest Rate on a Deposit
Simply, you need to create an interest-bearing account to start benefiting from deposit interest rates.
Here are a few simple steps for opening an account:
- Select a bank by comparing interest rates
- Collect your documents, such as an ID, Social Security card, or birth certificate.
- Open a fixed deposit account online or in person
- Add funds to your FD account.
Banks offer interests based on the principle balance. Usually, banks calculate interest every day by utilizing two strategies mentioned below:
An average daily
This method applies the average daily amount in your account throughout a statement period and a periodic rate to that figure.
To determine the average daily balance—sum up your account’s total principle balance for each day, and divide by the number of days during the period.
Daily balance
The daily balance technique applies the periodic rate to your FD account’s entire principal amount each day.
Wrapping up
A fixed deposit gives greater interest rate flexibility when it comes to the growth of your savings. Because of this, you can move closer to your financial goals when saving an FD account. For that, you need a bank that has a decent interest rate to earn some extra money. With all the information, perhaps you can now select the bank to open your first FD account.
