FDR vs Sanchayapatra in Bangladesh: Which is Better for Savings? (2026)

By Abdul Latif · Educational content · Updated 2026

In Bangladesh, two popular low-risk savings options are FDR (Fixed Deposit Receipt) and Sanchayapatra (National Savings Certificates). Both are widely used for “safe returns”, but they are not the same.

Quick answer: If you want more flexibility and shorter terms, FDR is usually easier. If you want government-backed long-term savings and are eligible, Sanchayapatra can be attractive. The best choice depends on liquidity needs, tax impact, and investment time horizon.

What Is an FDR in Bangladesh?

An FDR is a bank deposit where you keep money locked for a fixed period and earn interest. Tenures can be short or medium, and early encashment is possible (but usually with reduced interest).

Common FDR features

Offered by banks and financial institutions
Tenure can range from a few months to several years (varies by bank)
Can be auto-renewed
Encashment before maturity is possible (lower benefit)

What Is Sanchayapatra?

Sanchayapatra is a government savings instrument in Bangladesh, commonly used for long-term savings. Different schemes exist, and eligibility may apply depending on scheme rules.

Common Sanchayapatra features

Government savings product
Designed for long-term saving goals
May have specific eligibility and limits
Encashment rules and benefits depend on policy

FDR vs Sanchayapatra: Side-by-side Comparison

Factor	FDR	Sanchayapatra
Issuer	Banks / FIs	Government
Liquidity	Usually easier to encash early (reduced interest)	Rules depend on scheme; early encashment may reduce benefit
Return stability	Depends on bank rate and tenure	Depends on national savings policy and scheme
Tenure flexibility	More flexible (varies by bank)	More structured (scheme-based)
Account management	Managed via bank branch / online banking	Managed via savings office/bank channel (scheme dependent)
Best for	Short-to-medium term goals, emergency reserves portion, conservative investors	Long-term conservative savings, retirement planning (depending on eligibility)

Which One Is Safer?

Both are considered low-risk compared to stocks or crypto. However, “safety” depends on the institution and your expectations.

FDR safety depends on the stability and governance of the bank/financial institution
Sanchayapatra is generally treated as government-backed savings (policy-based)

Liquidity: Which Is Easier to Use in Emergency?

If you need emergency cash, liquidity matters more than return. Many people keep a portion of emergency funds in savings and a portion in short-term deposits.

Do not lock your entire emergency fund into long-term instruments. Keep emergency money easily accessible.

Tax & Documentation Considerations (Practical)

Taxes and documentation requirements can impact real returns. Always confirm:

Source tax rules (withholding tax, if applicable)
Any documentation or TIN requirements
How interest/profit is paid (monthly/quarterly/maturity)

Tip: Compare “net return after tax” instead of only advertised rates.

Best Choice by Person Type (Bangladesh Examples)

1) Salaried person building emergency fund

Keep most emergency funds in a savings account. If you want return, keep a portion in short-term FDR.

2) Retired person needing stable income

Depending on eligibility and policy, Sanchayapatra may be considered for long-term stability. But always consider liquidity needs.

3) Business owner with irregular cash flow

Prefer flexible options. FDR may provide easier access if cash flow changes.

Common Mistakes People Make

Choosing only based on “rate” and ignoring liquidity
Locking emergency funds into long-term savings
Not checking fee/tax impact
Not diversifying (keeping everything in one product)

Frequently Asked Questions (FAQ)

Which is better: FDR or Sanchayapatra?

It depends on your goals. For flexibility, FDR is usually easier. For long-term conservative saving and eligibility, Sanchayapatra can be an option.

Can I break an FDR before maturity?

Many banks allow early encashment with reduced benefit. Confirm the bank’s policy before opening.

Is Sanchayapatra risk-free?

It is generally treated as a low-risk government savings instrument, but benefits and rules depend on policy.

Should I invest my full savings into one product?

Usually not. Consider diversification and liquidity needs.