Profit rates increased significantly on national savings schemes

In response to rising policy rates, the government has increased profit rates on all national savings systems (NSS) by significant margins, effective April 10, 2023.

The decision was made after a significant hike in the policy rate by the State Bank of Pakistan. (SBP). To combat inflation, the central bank increased its benchmark interest rate to a record 21% at its most recent Monetary Policy Committee meeting on April 4.

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

With effect from April 10, 2023 until further notice, the profit rate on deposits placed in Shuhada's Family Welfare Account will be 16.56% per annum.

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

Regular Income Certificates now return 12.84% of the original investment.

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

According to the rules, withholding tax and zakat will be collected.