National Savings reduces profit rates again

November 02, 2024 (MLN): The Central Directorate of National Savings (CDNS) has once again slashed the profit rates on majority of its National Savings Schemes, with the decline going as much as 309 basis points (bps), according to its website.

The new profit rates are effective from November 04, 2024.

Rates per annum

The profit rates were reduced by 309bps on both Sarwa Islamic Savings Account (SISA) and Sarwa Islamic Term Account (SITA).

In addition, the rates were reduced by 60bps on Regular Income Certificates (RIC), 50bps on both Special Savings Account & Certificates (SSA-SSC), and 24bps on Bahbood Savings Certificates (BSC), Pensioner Benefit Account (PBA) and Shuhada Family Welfare Account (SFWA).

Meanwhile, the profit rates on Savings Account (SA) remained at 16.00%.

These adjustments in profit rates come as part of the government's efforts to align the National Savings Scheme rates with broader macroeconomic objectives, particularly in an environment of declining interest rates and inflation.

Pakistan's central bank is expected to cut its key interest rate further at its policy meeting on Monday, with policymakers continuing their efforts to revive a fragile economy as inflation eases off recent record highs.

The State Bank of Pakistan has slashed the benchmark policy rate to 17.5% from an all time-high of 22% in three consecutive policy meetings since June, having last reduced it by 200 basis points in September.

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