For decades, real estate, Sanchayapatra (savings certificates) and Fixed Deposit Receipts (FDRs) have been the largest and most trusted asset classes for savers in Bangladesh. Yet as interest rates and the tax landscape shift, a quieter, more powerful option is gaining ground: fixed income investment through Government Securities (GSEC) and professionally managed fixed income mutual funds.
Sanchayapatra appeals to those who want predictable cash flow, but Government Treasury Securities — and the funds that hold them — offer comparable safety, competitive yields and, increasingly, a decisive tax advantage. Despite this, GSEC remains largely untapped by individual investors, mostly due to a lack of awareness. This guide explains how GSEC works, what it yields today, and how the right structure lets you keep far more of your return.
What Are Government Securities (GSEC)?
Government Securities (GSECs) are issued by Bangladesh Bank on behalf of the government to finance budget deficits and public expenditure. They are tradable debt instruments backed by the full faith of the government, which makes them among the safest investments available in the country. GSECs come in two broad forms:
- Treasury Bills (T-Bills) — for short-term needs, in tenors of 91, 182 and 364 days.
- Treasury Bonds (T-Bonds) — for longer horizons, with maturities from 2 to 20 years.
Historically, institutional investors — banks, insurers and pension funds — have dominated the GSEC market, with individuals holding well under 1% of the total outstanding. That gap represents a large, under-used opportunity for retail savers, who can now access the same instruments directly or through mutual funds.
GSEC vs Sanchayapatra vs Fixed Deposit
A side-by-side view of how the three most common fixed income options compare — see also our deeper look at how FDR, DPS and Sanchayapatra stack up against mutual funds:
| Feature | GSEC (T-Bills & Bonds) | Sanchayapatra | Fixed Deposit (FDR) |
|---|---|---|---|
| Capital safety | High — govt-backed | Very high — govt-backed | Moderate — bank credit risk |
| Liquidity / early exit | Tradable in secondary market | Penalty on early encashment | Penalty on premature withdrawal |
| Investment limit | No limit | Scheme caps (e.g. up to ৳ 50 lakh) | No limit |
| Indicative yield (2026) | ~9.3% – 10.4% | ~11% – 12% | ~9% – 10% |
| Tax rebate eligibility | Yes (capped) | Yes (capped) | No (DPS up to ৳ 1,20,000) |
How to Invest in Government Securities
To invest directly in GSEC, you need a BPID (Business Partner Identification) or a BOID (Beneficial Owner Identification), obtained through the treasury department of a bank or a brokerage house respectively. The minimum investment starts at ৳ 1,00,000. GSECs are first sold in the primary market through Bangladesh Bank auctions, where you place a bid via a bank or broker; they then trade in the secondary market, which is increasingly accessible through the stock exchanges.
Current GSEC Yields in Bangladesh (2026)
GSEC yields move with the market. Based on the most recent Bangladesh Bank auctions (July 2026), cut-off yields ranged from about 9.33% on 91-day Treasury Bills to 10.35% on 20-year Treasury Bonds:
| Security | Tenor | Cut-off yield | Auction date |
|---|---|---|---|
| 91-day T-Bill | 91 days | 9.33% | 06 Jul 2026 |
| 182-day T-Bill | 182 days | 9.57% | 06 Jul 2026 |
| 364-day T-Bill | 364 days | 9.63% | 06 Jul 2026 |
| 5-year T-Bond | 5 years | 9.71% | 08 Jul 2026 |
| 10-year T-Bond | 10 years | 10.24% | 17 Jun 2026 |
| 20-year T-Bond | 20 years | 10.35% | 10 Jun 2026 |
Source: Bangladesh Bank — Treasury Bill/Bond auctions (cut-off yields), July 2026. A 3-year Floating Rate Treasury Bond (FRTB) also cleared at around 10.10% in the same window.
How T-Bills pay: Treasury Bills are issued at a discount — you buy below face value and receive the full face value at maturity. For example, when the 91-day bill yields around 9.33%, it is priced at roughly 97.74 per 100 of face value: you pay about ৳ 97.74 today and receive ৳ 100 at maturity, with the difference being your return.
How T-Bonds pay: Treasury Bonds work differently — you invest at (or near) face value and receive interest (a coupon) semi-annually, credited to your bank account, with the face value returned at maturity.
The one risk to know — interest rate risk: Because repayment is guaranteed by the government, GSEC carries no credit or default risk. It does carry interest rate risk. When you buy a bond you lock in the prevailing rate; if market rates later rise, newer bonds look more attractive and your bond's price would fall if you sold before maturity (a capital loss). If rates fall, your bond gains value (a capital gain). Hold to maturity and there is no gain or loss — you simply receive your coupons and principal.
Fixed Income Mutual Funds: The Managed Route to GSEC
Buying and managing individual securities — tracking auctions, reinvesting maturities, managing duration — takes time and expertise. Fixed income mutual funds solve this by pooling investors' money into a professionally managed, diversified portfolio of GSEC and other high-quality fixed income instruments, with the added benefit of daily liquidity at the prevailing Net Asset Value (NAV). Several open-end fixed income mutual funds are now available in Bangladesh:
| Fund name | Asset manager |
|---|---|
| EDGE High Quality Income Fund | EDGE AMC Ltd. |
| Ekush Stable Return Fund | Ekush Wealth Management Ltd. |
| IDLC Income Fund | IDLC AMC Ltd. |
| Sandhani AML SLIC Fixed Income Fund | Sandhani AMCL |
| Shanta Fixed Income Fund | Shanta AMCL |
| UCB Income Plus Fund | UCB AMCL |
Among these, the Ekush Stable Return Fund (ESRF), managed by Ekush Wealth Management Limited, is built specifically for capital preservation and tax-efficient income — investing in Treasury Bills and Bonds, FDRs from AAA-rated banks and NBFIs, investment-grade corporate bonds and preference shares, with active duration management and no entry or exit loads.
The Tax Advantage: Why a Fixed Income Fund Can Beat Sanchayapatra and FDR
Here is where the structure of your investment matters as much as the headline rate. Under the Finance Act 2026 (AY 2026–27), interest from Sanchayapatra and bank FDRs is taxable at your marginal rate — up to 30% for top-bracket taxpayers. Returns from the Ekush Stable Return Fund, by contrast, are structured as capital gains, which are tax-free up to ৳ 50 lakh. Same taka invested — very different amount kept.
Benefit 1 — Tax-efficient returns (0% vs up to 30%)
Consider ৳ 1,00,000 invested for one year by a top-bracket (30%) taxpayer:
| Where you invest ৳ 1,00,000 | Return | Tax | You keep |
|---|---|---|---|
| Ekush Stable Return Fund (capital gain, tax-free up to ৳ 50 lakh) | 11.0% | ৳ 0 | ৳ 11,000 |
| Sanchayapatra | 11.8% | − ৳ 3,540 (marginal rate) | ৳ 8,260 |
| Bank FDR | 10.0% | − ৳ 3,000 (marginal rate) | ৳ 7,000 |
Same taka. Different tax. ৳ 11,000 stays yours with ESRF — nearly ৳ 3,000–4,000 more than Sanchayapatra or FDR on just ৳ 1,00,000. On larger balances, the gap compounds.
Benefit 2 — An investment tax rebate on top
Investing in Ekush-managed open-end funds (EFUF, EGF and ESRF) also qualifies for the investment tax rebate, credited directly against your income tax. The rebate you receive is the lowest of three limits:
- Rule 1 — 3% of your taxable income.
- Rule 2 — 10% of your eligible investment.
- Rule 3 — ৳ 7,50,000, the absolute annual ceiling.
Worked example: on a ৳ 12,00,000 salary (about ৳ 8,00,000 taxable income and ৳ 45,000 gross tax), investing ৳ 2,40,000 in Ekush funds earns a ৳ 24,000 rebate — cutting the tax bill by 53%, to ৳ 21,000. That is effectively an instant 10% return before any fund performance, reachable with a ৳ 20,000/month SIP or a lump sum. Estimate your own numbers with the Ekush tax calculator.
And funds win on eligibility, because Ekush open-end funds count as new eligible investment without the low caps that apply elsewhere:
| Instrument | Rebate treatment | Cap |
|---|---|---|
| Ekush open-end funds (EFUF, EGF, ESRF) | Counts as new investment | No specific cap |
| Sanchayapatra / Govt. securities | Rebate-eligible | Capped at ৳ 5,00,000 |
| DPS (Deposit Pension Scheme) | Rebate-eligible | Capped at ৳ 1,20,000 |
One caveat — the deadline matters: file your return on time. The rebate is forfeited if you miss Tax Day. For the full mechanics, see our guide to the investment tax rebate.
Tax on Directly-Held GSEC
If you hold GSEC directly rather than through a fund, interest income is subject to a 10% TDS (tax deducted at source) and is assessed alongside your other taxable income. Direct investment can qualify for a rebate up to ৳ 5,00,000, subject to the overall limits above — one reason many investors prefer the fund route, where returns are structured as tax-free capital gains and rebate eligibility is not capped in the same way.
The Outlook for Fixed Income in Bangladesh
Government borrowing through GSEC has grown into a cornerstone of public finance — the outstanding stock reached about ৳ 5 lakh crore at the end of FY2022–23, equivalent to roughly 11.4% of GDP, compared with about 8.2% for Sanchayapatra. With regulatory reforms opening secondary trading on the stock exchanges, and tax-efficient fund structures now widely available, fixed income is set to become a far more prominent choice for Bangladeshi investors.
The Ekush Stable Return Fund targets GSEC-comparable returns, structured as tax-free capital gains, with daily liquidity and no entry or exit load.
Explore the Stable Return FundFrequently Asked Questions
Disclaimer: This article is for general information only and is not investment or tax advice. Indicative returns and tax figures are illustrative estimates based on Ekush's tax calculator under the Finance Act 2026 (AY 2026–27); your actual outcome depends on your circumstances — consult a tax advisor. Investments in mutual funds carry risk, including possible loss of principal; the sponsor, asset manager and fund do not guarantee returns. Ekush Wealth Management Limited is a BSEC-licensed asset manager (License BSEC/AMC/2019/44; Custodian: BRAC Bank PLC; Trustee: Sandhani Life Insurance Company Limited).