Initiatives have been launched to attract interest-free and low-interest deposits while strengthening banks’ deposit bases.
February 5, 2026, 8:15am
Last updated: February 5, 2026, 11:52 AM
Bangladesh Krishi Bank (BKB) has introduced a Shariah-compliant fixed deposit scheme for those who prefer not to earn interest on their savings. This announcement was made in a circular on January 29, directing branch managers to begin account openings under this scheme starting February 1. Any Bangladeshi national aged 18 or older is eligible to open such an account.
BKB’s deputy managing director, Md Khaleduzzaman, mentioned that the bank’s board approved this initiative after responding to requests from devout citizens throughout the country. In this scheme, depositors do not receive interest. This arrangement means that the bank covers all associated government and banking charges, including excise taxes, on the depositor’s behalf.
Depositors who maintain a certain balance may be eligible for a debit card. The bank noted the significant number of religious citizens in Bangladesh who wish to secure their savings without accruing bank interest, suggesting great potential for interest-free deposits from this demographic.
The initiative aims to draw more interest-free and low-interest deposits and enhance banks’ deposit foundations. The account approval was discussed at the bank’s 887th board meeting on October 15 of last year.
Account conditions:
There are some stipulations for the Krishi Bank Interest Free Fixed Deposit Scheme, such as a minimum deposit of Tk25,000, with no upper limit. The duration of the deposit can range from one month to three years or even longer. According to the bank, government excise tax will be deducted every December, but the deducted amount will be refunded by the branch within two days. Importantly, because this account is interest-free, no withholding tax is applied.
The bank will not charge maintenance fees, and fees for account closures, statements, and SMS services will also be waived. Besides individuals, various religious institutions and organizations—like mosques, temples, madrasas, and clubs—can open accounts as well.
However, this account won’t come with checks or a checkbook. Instead, account holders will receive a deposit receipt when they open their accounts. Transfers between branches aren’t allowed, and no loans will be issued against this account.
How does it compare to other banks?
Such interest-free accounts are typically found in Islamic Sharia-compliant banks through the Al-Wadiyya system, and traditional banks with Islamic counters also offer similar options. Currently, no other state-owned commercial or specialized banks offer this specific type of interest-free fixed deposit account. Customers at Sonali Bank, Janata Bank, Rupali Bank, and Agrani Bank can open savings accounts by formally stating they will not receive interest. Current accounts at these banks also do not accrue interest, which is common for most private banks, though customers often face various service and maintenance fees that differ by institution.
Right now, Rajshahi Krishi Unnayan Bank does offer interest-free savings accounts. Additionally, several private banks like City Bank, AB Bank, Trust Bank, Standard Chartered Bank, Eastern Bank, United Commercial Bank, and Dutch Bangla Bank provide interest-free services through their Islamic divisions.
