Government Reduces Profit Rates on National Savings Schemes Following SBP’s Interest Rate Cut

Following a 100 basis point reduction in the interest rate by the State Bank of Pakistan, the federal government has announced a reduction in the profit rates on national savings schemes by up to 2%.

According to a notification issued by the Central Directorate of National Savings (CDNS), the profit rate on Regular Income Certificates has been reduced from 12% to 11.88% annually. The profit rate on Bahbood Savings Certificates has been reduced from 13.92% to 13.68% annually, and the rate for Pensioners’ Certificates has been similarly reduced from 13.92% to 13.68%.

The profit rate for Shaheed Families Welfare Accounts has also been lowered from 13.92% to 13.68%, while the rate on Savings Accounts has been reduced from 13.50% to 11.50% annually.

In short-term savings schemes, the profit rates on certificates have also been adjusted. For example, the profit on a 3-month certificate with an investment of 100,000 rupees has decreased from 3,190 rupees to 2,810 rupees. The profit for a 6-month short-term certificate has been reduced from 6,370 rupees to 5,660 rupees, and the profit on a 1-year short-term certificate has dropped from 12,380 rupees to 11,000 rupees.

However, the profit rates for Special Savings Certificates, Accounts, and the Servo Islamic Term and Savings Accounts remain unchanged.