Recent Rate Cuts: What to Expect from New National Savings Schemes

Karachi: The Central Directorate of National Savings has once again reduced the profit rates on its savings schemes, with some rates declining by as much as 250 basis points. These new rates will take effect from December 10.
Among the most significant changes is the 250 basis point reduction in the profit rate of the Savings Account, which now stands at 13.5%. Additionally, the profit rates for the Sarwa Islamic Savings Account (SISA) and Sarwa Islamic Term Account (SITA) have been reduced by 72 basis points, bringing their rates down to 10.44%.
Other savings instruments have also seen a reduction in their profit rates, including:
Special Savings Accounts and Certificates (SSA-SSC): Reduced by 50 basis points
Regular Income Certificates (RIC): Reduced by 12 basis points
However, some schemes have maintained their previous rates, including the Welfare Savings Certificates, Pensioners Benefit Account, and the Martyrs’ Family Welfare Account, which remain unchanged at a rate of 13.92%.
These changes are in line with the government’s strategy to reflect broader economic conditions, particularly the declining interest rates and falling inflation. The adjustments come ahead of the expected reduction in the State Bank of Pakistan’s policy rate, which is anticipated in the upcoming meeting on December 16. Since June, the central bank has lowered the policy rate from a record high of 22% to 15%, including a 250 basis point cut in November.
The ongoing reductions in interest rates are part of the government’s efforts to stabilize the economy in response to shifting market conditions.