What are expatriate bonds?
Expatriate bonds are government savings bonds just for Bangladeshis living abroad. Buying a bond means lending the government money for a fixed number of years; in return the government pays profit and repays your money at the end.
The money has to come from income earned abroad. One bond is in taka and two are in US dollars, so expatriates can save part of their earnings at home in taka, or keep it in dollars.
Say Shafiq, who works in Dubai, sends money home every month for his family’s expenses. Over a few years he has saved an extra Tk 300,000 and wants it to be useful when he returns. He uses it to buy a Wage Earner Development Bond, so that at the end of the term both the money and the profit are waiting for him at home.
How it works
You buy these bonds with money earned abroad, either remitted home or paid directly in foreign currency. They are part of the national savings schemes, so repayment is the government’s obligation. They are sold through the authorised dealer branches of banks in Bangladesh, Bangladeshi banks’ branches abroad and exchange houses.
The Wage Earner Development Bond runs for 5 years and is bought and paid in taka. The two dollar bonds run for 3 years and are bought in US dollars; the principal is repaid in dollars and can be taken abroad.
The rate on the day you buy holds for the whole term. Rates depend on your total investment: the larger the amount, the lower the rate. You can reinvest at maturity, but at the rate in force then.
Tk 500,000 in a Wage Earner Development Bond at 12% a year earns Tk 60,000 a year, Tk 300,000 over five years. In recent years the profit on this bond has been tax-free. The rate is only an example; actual rates depend on the amount and when you buy.
The three bonds
- Wage Earner Development Bond
- A 5-year bond in taka. Bangladeshis working abroad can buy it, and so can a person they nominate at home, using remitted money. A national ID card is required.
- US Dollar Premium Bond
- A 3-year bond bought in dollars; profit is paid in taka every six months, and the principal is repaid in dollars.
- US Dollar Investment Bond
- A 3-year bond bought in dollars; principal and profit can both be taken in dollars. Its rate has usually been about 1 percentage point below the Premium Bond’s.
Limits and changing rules
The rules on these bonds have changed repeatedly. A ceiling on the dollar bonds was introduced in 2020 and removed in April 2022. The Wage Earner bond had a Tk 1 crore limit shared with sanchayapatra from 2021; from December 2024 the ceiling on expatriates’ investment in government bonds was lifted.
At the same time, Bangladeshis working for foreign companies, such as seafarers, pilots and cabin crew, were allowed to buy, and reinvestment at maturity was allowed up to a total of 15 years. Check the latest rules with the bank before you buy.
What return to expect
The Wage Earner bond used to pay 12% to everyone. Since 2021 the rate has depended on the amount: 12% up to Tk 15 lakh, falling in steps to 9% above Tk 50 lakh. The July 2025 review left these rates unchanged.
Dollar bond rates have moved with world markets. Before 2022, the Premium Bond paid 7.5% and the Investment Bond 6.5%. In April 2022, rates were cut and tiered by amount, down to 2–3.5% on large holdings. In January 2024 they were raised again: up to USD 100,000, 7.5% at maturity on the Premium Bond and 6.5% on the Investment Bond.
Encash early and profit is recalculated at a lower rate; encash a Wage Earner bond within six months and you get no profit. On the taka bond, if the taka loses value, your return measured in dollars falls.
Why people choose it
- Repayment is the government’s obligation.
- In recent years the profit has been tax-free.
- On the dollar bonds the principal stays in dollars, which limits exposure to a falling taka.
- You can hold government savings at home while living abroad.
Points to weigh
- Rates and limits have changed repeatedly.
- Larger amounts get lower rates.
- Encashing early cuts the profit.
- Buying and encashing involve paperwork that can be awkward to handle from abroad.
Tax
Under income tax law, in recent years the profit on all three bonds has been tax-free, so no tax is deducted at source. This can change if the law changes.
If you are a taxpayer in Bangladesh, or return home, you may need to show the bonds in your wealth statement.
Tax rules can change with each year’s Finance Act. Before a big decision, check the latest rules or speak to a tax adviser.
How to get started
- Think about which bond fits: whether you want profit and principal in taka or in dollars.
- Contact the authorised dealer branch of a bank in Bangladesh, a Bangladeshi bank’s branch abroad or an exchange house.
- Take your documents: passport, national ID card where required, work visa or residence proof, proof of remittance, and your nominee’s details.
- Get the rate, when and in which currency profit is paid, and the early-encashment rules in writing.
Check before you start
- Might I need this money before maturity?
- Which rate tier will my total investment fall into?
- Do I know whether profit comes in taka or dollars, and whether it can be taken abroad?
- Do I know which account the selling bank will pay profit into?
- Is a nominee properly recorded?