Profit on national saving schemes again slashed

The Central Directorate of National Savings (CDNS) has announced another downward revision in the rates of return on most of its savings schemes, effective from February 21, 2024, reported 24NewsHD TV channel on Thursday. 

It may be mentioned here that this was the third cut in profit during the last two months.

According to the CDNS notification, rates of Special Savings Certificates (SSC) were decreased by 40 bps to 15.6% from 16%. 

The rates of Bahbood Savings Certificates (BSC), Pensioners Benefit Account (PBA), and Shuhada Family Welfare Account were reduced by 72bps, and will now offer a return profit of 15.36%, as compared to the previous 16.08%.

The Defence Saving Certificates (DSC) will now offer a return of 13.67% return, as compared to a 14.22% return, a decline of 55bps.

Rates on Short Term Savings Certificates (STSC) were reduced by 58bps, and will now yield 19.76% as compared to the earlier 20.34%.

The return on Regular Income Certificates (RIC) also reduced to 14.64% from 15%, a decrease of 36bps.

On the flip side, rates of Saving Account, Sarwa Islamic Term Account, and Sarwa Islamic Saving Account remained unchanged.

The CDNS move comes after the State Bank of Pakistan (SBP) kept the key interest rate unchanged at 22% in its last monetary policy committee meeting, but hinted at a possible rate cut in the future.

Reporter Ashraf Khan