ISLAMABAD (Kashmir English): The federal government has announced a major set of revisions to profit rates on various National Savings Schemes with effect from November 04.
According to a notification issued by the Ministry of Finance, upward and downward adjustments have been made across different popular savings schemes.
Saving Certificates Profit Rates Increased
Many of the schemes that were designed for general savers will now offer higher returns:
- The profit rate of the Special Savings Certificate has been increased to 11.60 percent.
- Now, the Regular Income Certificate will yield a 10.92 percent return.
- Short-Term Savings Certificates also got a bump: the three-month return was set at 10.44 percent, while the one-year certificate yielded 10.64 percent.
- Within the Islamic finance category, the Sarwa Islamic Term Account witnessed an increase in profit rates for its three- and five-year categories.
Profit Rates Decreased
However, not all schemes have received a rise in the profit rates; several schemes witnessed a downward trend. Schemes that target mainly a group market have seen reductions in profit rates:
- The Behbood Savings Certificate rate, which is popular among widows and senior citizens, was decreased to 12.72 percent from 13.44 percent.
- The declining trend was also pronounced in the case of the Defense Savings Certificate.
- The Shuhada Family Welfare Account* profit rate has been reduced by 0.72 percent.
Stable Returns
However, not all savings schemes have witnessed a change; some schemes remain untouched, for instance, the rate for a standard Savings Account remains at 9.50 percent.
Similarly, no changes were made to the Sarwa Islamic Savings Account. The one-year Sarwa Islamic Account maintains a return of 9.92 percent.
Meanwhile, the Pensioners’ Benefit Account now offers 12.72 percent, similar to the revised rate offered by the Behbood Savings Certificate.
These sweeping changes mean savers must reassess their investments to understand how the new, immediately effective profit rates will affect overall returns. The National Savings Organization is the largest financial institution in Pakistan, which has a portfolio of above Rs. 3.4 trillion and serves more than 4 million valued customers through a large network of 376 branches across the country.
It is managed by 12 Regional Directorates. As the first financial institution in the public sector, it has successfully created a savings culture in Pakistan and mobilized funds for the government to finance its budget deficits and infrastructure projects.
National Savings has its roots tracing back to the Government Savings Bank Act of 1873, and since then, it has been serving in this country for more than 140 years.
It was initially utilized by the British Government to raise funds for war-related expenditures during World Wars I and II. The NSB was given a statutory status in 1943-1944 to institutionalize savings, and it has continued to operate in various forms since Pakistan’s independence in 1947.
