Govt raises saving rates by 118 bps

May 08, 2023 (MLN): The federal government has increased the profit rates for various National Savings Schemes (NSS) by up to 100 basis points (bps) with effect from May 9, 2022.

As per the revision, the profit rate for Short-term Saving Certificates for 3-month, 6-month, and 1-year raised has increased by 92bps, 118bps, and 98bps to 20.84%, 20.82%, and 20.80%, respectively.

On average, the profit rate of saving certificates moved up by 27bps to 17.40%.

In addition to it, the saving certificate holders will now see a 100bps surge to 19.50.

The profit rate for Shuhada Family Welfare, Pensioners Accounts, and PBA will remain unchanged at 16.56%.

The increase in profit rates is mainly attributable to the increase in the policy rate to arrest inflation.

The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) in its meeting held on April 04, 2023, decided to raise the policy rate to an all-time high by 100 basis points (bps) to 21%. 

Consumer inflation accelerated to 36.4% YoY in April 2023, compared to 35.4% YoY in the last month and 13.4% YoY in April 2022, which has dented the purchasing power of the salaried class.

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