ISLAMABAD (Kashmir English): The federal government has announced a reduction in profit rates for various national savings schemes, a move that will directly impact millions of savers across the country.
According to a notification issued by the Ministry of Finance, the revised rates will take effect from July 28.
According to a notification issued by the Ministry of Finance, the revised rates will apply to a wide range of saving instruments.
The new rates affect Special Savings Certificates, Defence Savings Certificates, Regular Income Certificates, Bahbood Savings Certificates, Pensioners’ Benefit Accounts, and Shuhada Family Welfare Accounts.
As per the latest update, the annual profit on Special Savings Certificates has been slashed from 10.6% to 10.4%. Similarly, Bahbood, Pensioners, and Shuhada Family Welfare Accounts will now offer 12.96% instead of the previous 13.20%.
The Defence Savings Certificates, which offer returns over a nine-year period, have also seen a reduction from 162% to 161%. For the tenth year, the return has been adjusted from 204% to 200%.
Regular Income Certificates and Short-Term Savings Certificates have also seen similar reductions, though the exact figures weren’t disclosed.
Profit rate on Savings Accounts remains unchanged
However, the profit rate on Savings Accounts remains unchanged at 9.50%, giving a bit of relief to small account holders who rely on these for short-term gains.
In contrast to the wide-ranging cuts, Islamic Savings Schemes have received a boost instead. Profit rates on Sarwa Islamic Term Accounts and Islamic Savings Accounts have been enhanced, signaling the government’s intent to promote Shariah-compliant saving instruments.
