Govt Announces Huge Cuts in Profit Rates on National Savings Schemes

The government has decreased the rates of profit on national savings certificates and schemes by up to 375 bps. The profit rates have been decreased on Bahbood Savings Certificates (BSC), Defence Savings Certificates (DSC), Pensioner Benefit Account (PBA), Regular Income Certificates (RIC), Shuhada Family Welfare Account (SFWA), and Special Savings Certificates (SSC). The rates of profit on Sarwa Islamic Savings Account (SISA) and Savings Account (SA) have seen a big decrease. The rate of return on RIC has decreased by 180 bps to 12.72 percent, while the rate of return on SSC has been slashed by 310 bps to 12.10 percent. The profit rate on BSC, PBA, and SFWA is down at 14.16 percent each, while the rate of return on STSC is unchanged at 17.22 percent. The rate of return on Defense Saving Certificates (DSC) was cut down by 106 bps to 12.51 percent. The rate of return on the savings account (SA) has come down by 300 bps to 16 percent and down by 375 bps to 14.25 percent for Sarwa Islamic Savings Account (SISA). Meanwhile, the rate of return on Sarwa Islamic Term Account (SITA) has decreased by 211 bps to 14.25 percent.