Published Schedule Rates vs. Negotiated Sanction Rates
When evaluating financial products in Bangladesh, it is crucial to recognize that the figures displayed on bank websites, quarterly rate circulars, and AllOfBD represent published headline rates. These rates serve as standard regulatory schedules rather than guaranteed individual contracts.
The actual interest rate or profit rate extended to an applicant is ultimately determined during credit underwriting. Factors influencing your personalized rate include your verifiable monthly income, debt-burden ratio (DBR), employment category, existing banking relationship, and Credit Information Bureau (CIB) report score.
- Schedule Rates: Publicly declared baseline rates mandated by Bangladesh Bank disclosure rules.
- Underwritten Rates: Specific rates documented in your formal sanction letter following risk assessment.
- Floating Adjustments: Periodic adjustments tied to benchmark policy shifts.
Regulatory Rate Frameworks: SMART vs. Market-Driven Corridors
In Bangladesh, lending and deposit rate mechanisms have evolved significantly. Following the transition away from administrative rate caps (such as the historical 9% lending cap) and the subsequent SMART (Six-Month Moving Average Rate of Treasury Bill) corridor, banks currently operate under market-driven rates guided by Bangladesh Bank monetary policy directives.
Under market pricing, retail lending rates fluctuate based on interbank liquidity, treasury bond yields, and individual bank cost-of-funds. The following table illustrates standard rate variance across lending categories in scheduled commercial banks.
| Facility Type | Typical Benchmark / Basis | Regulatory Margin Band | Rate Nature |
|---|---|---|---|
| Home Mortgage Loan | Cost of Funds / Policy Repo | 2.50% – 3.75% | Floating (Quarterly Review) |
| Auto / Car Loan | Cost of Funds / Policy Repo | 3.00% – 4.50% | Floating (Semi-Annual) |
| Personal Unsecured Loan | Standard Base Lending Rate | 4.00% – 6.00% | Fixed / Semi-Annual Floating |
| Fixed Deposit (1 Year) | Bank Liquidity Schedule | Published Slab Rate | Fixed for Tenure |
Taxation on Deposit Yields: Advance Income Tax (AIT) Withholding
Gross returns on bank deposits (DPS, FDR, and savings accounts) are subject to mandatory Advance Income Tax (AIT) deducted at source by the bank prior to credit or maturity payout, in accordance with the National Board of Revenue (NBR) Income Tax Act 2023.
Depositors who submit a verified 12-digit electronic Tax Identification Number (e-TIN) alongside proof of tax return submission benefit from a reduced withholding rate of 10%, compared to 15% for non-compliant accounts.
| Taxpayer Profile | Applicable AIT Rate | Statutory Requirement | Net Return on ৳100K Profit |
|---|---|---|---|
| Registered e-TIN with Return Proof | 10.0% | Acknowledgment receipt under Section 184A | ৳90,000 |
| Non-TIN Depositor / No Return | 15.0% | Standard withholding deduction | ৳85,000 |
| Institutional Corporate Depositor | 20.0% | Audited corporate tax filing | ৳80,000 |
Audit Trail & Provenance Verification
AllOfBD maintains an append-only rate ledger with timestamped verifications. We advise users to observe the "Effective Date" on product cards, cross-reference the official bank tariff sheet via the provided external links, and utilize AllOfBD calculators for indicative planning before formal branch application.
Calculate exact EMI & deposit returns
Compare loan EMIs, DPS maturities, and FDR interest rates across all scheduled banks.