Last updated: 11 October 2026 · Rates checked against: National Board of Revenue withholding provisions on interest from savings and fixed deposits
Reviewed by Zia Shahid, Buzdy Banking Editor · Our methodology
In this guide
Your bank deducts tax when it credits profit to your account. How much depends on one thing: whether you have given the bank your TIN.
With a TIN — 10% deducted from interest on savings and fixed deposits
Without a TIN — 15%
A savings deposit whose balance never exceeds Tk 1 lakh in the year is not subject to the deduction.
Deducted at source by the bank when profit is paid, under the withholding provisions on interest from deposits.
The rates
| Situation | Rate | How it is taken |
|---|---|---|
| Savings and fixed deposits, TIN provided | 10% | deducted by the bank |
| Savings and fixed deposits, no TIN | 15% | deducted by the bank |
| Savings deposit never exceeding Tk 1 lakh in the year | — | not deducted |
Why the TIN matters more than people think
The gap is half as much again. On Tk 100,000 of profit the difference between holding a TIN and not holding one is Tk 5,000 — for a piece of paperwork that is free to obtain.
What is not deducted
Interest or share of profit from a deposit pension scheme sponsored by the Government, or by a scheduled bank with prior Government approval, is outside the deduction.
Frequently asked questions
What is the Tk 1 lakh rule exactly?
The deduction does not apply where the balance of a savings deposit does not exceed Tk 1 lakh at any time in the year.
Does this apply to Islamic banking profit?
The provision is written around profit or interest paid on deposits by banks, rather than around the product being conventional or Islamic.
Can I claim the deduction back?
Whether it is adjustable against your overall liability depends on your circumstances. Ask a tax practitioner — this guide will not guess.
Where do I get a TIN?
The NBR issues TINs through its own e-TIN registration service.
Sources
This is information, not tax advice. The figures above were checked against the source named at the top of this page on 11 October 2026. Tax rules change, usually with each annual budget. For a decision about your own money, speak to a qualified tax adviser in your country.
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