New to bonds? Start here, then see how to invest through Midway.
Part 1 · Understanding Government Bonds
Imagine lending money to someone you trust, who promises to pay you back later, plus a little extra as thanks. That is essentially what a government bond is. You lend money to the government, and they pay you back with interest after a set period of time.
“Tenor” just means the length of time you agree to lend your money before you get it back. Shorter tenors return your money sooner, while longer ones typically pay a bit more interest for tying your money up for longer.
2 and 5 Years
Shorter Term
10 and 15 Years
Longer Term
20 Years
Longest Term
Bangladesh Bank sells these five tenors through the year. Because it often reissues older bonds, a tenor means about how many years are left, not always how long ago the bond was first issued.
They are generally considered lower-risk than stocks, since repayment is backed by the government. Many investors hold a mix of both, steadier government bonds alongside stocks, rather than choosing one over the other.
Part 2 · Investing in Government Bonds with Midway
Check the auction calendar
Apply by Thursday 1:00 PM
Bangladesh Bank holds the auction the following week
Bonds are credited to your BO Account
Apply in the Midway Portal by 1:00 PM on Thursday for next week’s auction. The price is set automatically through the auction, so you do not need to set your own. Allotted bonds are typically credited to your BO Account about a week after the auction.
Owning a government bond is one of the easiest things in investing. Once you buy through Midway, the payments arrive on their own, straight from Bangladesh Bank.
Interest Every 6 Months
Bangladesh Bank deposits your interest directly into your bank account, twice a year.
Paid Straight to Your Bank
No forms to file, no requests to make and no reminders to set. The deposit just shows up.
Principal at Maturity
When the bond matures, Bangladesh Bank deposits your money back into your bank account.
Buy once, then relax.
There is nothing to claim, renew or chase. Prefer to sell early? You can also trade your bonds in QuickTrade Pro, just like a stock.
The interest rate and payment amounts depend on the bond you buy. Government bonds are not risk-free and no returns are guaranteed by Midway. For education and information only; not investment advice.
Calculate Your Bond Interest
See how much you would receive every 6 months, after AIT.
Open the Calculator →Bangladesh Bank often reissues a bond it has already issued: instead of creating a brand-new bond, it sells more of an existing one, with the same interest rate and the same maturity date. You buy it exactly like any other auction bond, and the interest and maturity payments still arrive in your bank account automatically.
Less Time Left
A reissued 5-year bond may have only 2 or 3 years left. Look at the time remaining to maturity, not just the original tenor.
Original Interest Rate
The bond keeps its original rate. Your actual return also depends on the price you pay, which can be above or below face value.
Accrued Interest at Purchase
You reimburse the seller for interest earned since the last payment date, and you receive the full interest on the next payment date, so it evens out.
Original Payment Dates
Interest follows the bond’s original calendar, so your first payment can arrive sooner than six months after you buy.
Good to know: reissues add to the size of an existing bond, which can make it easier to trade later. Each auction result shows the price, yield and remaining maturity, so you can see exactly what you are buying.
See a worked example in the Treasury Bond Center →Government bonds are not just for new auctions. Once they are in your BO Account, you can also buy and sell them directly through QuickTrade Pro, just like a stock.
Applications start at ৳1,00,000, in multiples of that amount.
Open a BO Account, or apply for the next auction in the Midway Portal.
All auction and yield data referred to on this page are taken from Bangladesh Bank’s website. Bond yields and prices change with each auction and past results do not indicate future results. Returns are not guaranteed.
