National Savings reduces profit rates by up to 250bps

December 10, 2024 (MLN): The Central Directorate of National Savings (CDNS) has once again slashed the profit rates on majority of the Savings Schemes, with the decline going as much as 250 basis points (bps), according to its website.

The new profit rates are effective from December 10, 2024.

National Savings Rates

Rates per annum

The profit rate was reduced by 250bps on Savings Account (SA).

In addition, the rates were reduced by 72bps on Sarwa Islamic Savings Account (SISA) and Sarwa Islamic Term Account (SITA), respectively.

Moreover, Special Savings Account & Certificates (SSA-SSC) and Regular Income Certificates (RIC) saw a drop of 50bps and 12bps, respectively in their profit rat

Meanwhile, the profit rates on Bahbood Savings Certificates (BSC), Pensioner Benefit Account (PBA) and Shuhada Family Welfare Account (SFWA) remained unchanged.

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 December 16, 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 15% from an all time-high of 22% in four consecutive policy meetings since June, having last reduced it by 250 basis points in November.

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