Profit rates increased significantly on national savings schemes

ISLAMABAD: The government has raised profit rates by big margins on all the national savings schemes (NSS) with effect from April 10, 2023, in the wake of rising policy rates.

The decision has been taken after a massive increase in the policy rate by the State Bank of Pakistan (SBP). The central bank raised its key interest rate to a record 21% in its last Monetary Policy Committee meeting on April 04 to rein in inflation.

According to a notification issued on Friday, in the exercise of the powers conferred by Rule-II of the Pensioners’ Benefit Accounts Rules, 2003, the Finance Division has announced that the rate of profit on deposits made in Pensioners’ Benefit Accounts and Behbood Savings Certificates with effect from April 10, 2023 till further notification shall be 16.56% per annum.

The rate of profit on deposits made in Shuhada’s Family Welfare Account with effect from April 10, 2023 till further notification shall be 16.56% per annum.

The Central Directorate of National Savings (CDNS) also increased the profit rate on the Defence Saving Certificates from 9.29% to 14.87%.

The return on Regular Income Certificates has been raised to 12.84% of the total investment.

Similarly, the profit margin on the three-year Special Saving Certificates and Special Savings Account was increased to 17% for the first five profits and to 17.8% for the sixth profit while the return on Saving Accounts (running accounts) was increased to 18.5%.

There will be a deduction of Withholding Tax and Zakat as per the rules.