V2I10P67

The Role of National Savings Certificates in Household Investment and Economic Stability in Bangladesh

Narayan Nath^1*

Abstract

This paper examines the role of National Savings Certificates (NSCs) in household investment and economic stability in Bangladesh. NSCs serve as a secure and attractive savings instrument for households, mobilizing domestic savings while providing the government with necessary funds for national development. The study highlights the benefits of NSCs in promoting financial literacy, ensuring steady household investment, and contributing to macroeconomic stability. Challenges such as potential crowding out of private investment, fiscal burden, and limited liquidity are also discussed, alongside policy implications to maximize effectiveness.

Keywords:

National Savings Certificates, Household Investment, Economic Stability, Bangladesh, Domestic Savings