Govt Cuts Profit Rates on National Savings Schemes

The federal government has reduced profit rates on several National Savings Schemes with effect from July 28. The annual profit on Special Savings Certificates has been reduced from 10.6 percent to 10.4 percent. The rate for Bahbood Savings Certificates, Pensioners’ Benefit Accounts, and Shuhada Family Welfare Accounts has been lowered from 13.20 percent to 12.96 percent. For Defence Savings Certificates, the cumulative return over nine years has been cut from 162 percent to 161 percent, while the 10-year return has been revised from 204 percent to 200 percent. The return on Short-Term Savings Certificates has also decreased. The profit rate on regular Savings Accounts remains unchanged at 9.50 percent. The government has increased profit rates on Sarwa Islamic Term Accounts and Islamic Savings Accounts.