Karachi, March 23, 2024 – The Central Directorate of National Savings (CDNS) has announced adjustments to the profit rates across various saving schemes, aiming to align them with prevailing economic trends and monetary policy objectives.
On Friday the CDNS revealed a 24 basis points (bps) increase in profit rates for several saving schemes while simultaneously reducing rates for short-term savings certificates.
As a crucial state-operated savings entity offering diverse deposit avenues for individual savers, the CDNS has observed improvements in profit rates for special savings accounts, pensioners’ benefit accounts, regular income certificates, and Behbood savings certificates.
Effective from March 19, the revised rate for savings accounts, applicable to withdrawals made through channels other than cheques, has been implemented.
Special Savings Certificates (SSC) will now yield a return of 15.80 percent, marking a 20bps increase from the previous 15.6 percent. Correspondingly, Regular Income Certificates (RIC) will offer a 14.76 percent return, reflecting a 12bps increase from the previous 14.64 percent.
Likewise, rates for Behbood Savings Certificates (BSC), Pensioners Benefit Account (PBA), and Shuhadas Family Welfare Account (SFWA) have risen to 15.60 percent each, indicating a 24bps increment.
Conversely, rates for Short-Term Savings Certificates (STSC) have experienced a decrease of 76bps, settling at 19 percent. Rates for Defence Saving Certificates (DSC), Savings Account (SA), Sarwa Islamic Term Account (SITA), and Sarwa Islamic Saving Account (SISA) remain unchanged at 14.40 percent, 20.50 percent, 18.54 percent, and 20.50 percent, respectively.
The CDNS has disseminated updated rate sheets to all regional offices, instructing them to implement the new rates on the existing stock of blank certificates, effective from March 19, 2024.
The rates of National Savings schemes are tied to Pakistan Investment Bonds (PIB) for medium and long-term instruments, and Treasury bills (T-bills) for short-term securities. The adjustment in the rates of return on National Savings schemes aligns with the central bank’s decision to maintain the key interest rate at 22 percent earlier this week, citing a projected downturn in inflation in the forthcoming months.
These revisions underscore the CDNS’s commitment to optimizing returns for savers while ensuring alignment with prevailing economic trends and monetary policy objectives. Savers and investors alike stand to benefit from these adjustments, contributing to the overall stability and growth of the economy.
The CDNS encourages individuals to take advantage of these revised rates and make informed decisions regarding their savings and investment portfolios, thereby fostering a culture of financial prudence and stability in the country.
