National savings slashes profit rates by up to 160bps

December 20, 2023 (MLN): The National Savings has announced a revision in the savings account profit rate, whereby the rates have been slashed by up to 160 basis points (bps) or 1.6%.

The new profit rates are effective from December 19, 2023.

According to the details available, the average rate of profit payable on the deposits made in Special Savings Accounts, which are applicable on accounts opened in terms of rule 36E has seen a fall of 160bps/1.6% to 16.40% compared to 18% per annum in the last revision.

Similarly, the rate on Special Savings Accounts has also been reduced by 1.60% to 16.40% per annum.

The profit rates on short-term savings certificates for 3 months, 6 months, and 1 year have experienced reductions of 1.02%, 96 basis points, and 1%, respectively. They now stand at 20.72%, 20.76%, and 20.80%, respectively.

The National Savings has also revised the rate of profit on deposits made in Pensioners' Benefit Accounts and in Shuhada's Family welfare Account, which now stands at 16.08% per annum, marking a decline of 24bps.

Going forward, the revised rates for the regular income certificate, and Behbood savings certificate will now stand at 15.12% and 16.08% per annum, down by 96bps and 24bps.

Conversely, the National Savings in this revision has decided to keep profit rates for savings accounts and Defense savings certificates unchanged at 20.5% and 14.48% per annum.

The rates on the Sarwa Islamic Term Account (SITA) have also been revised.

The details further show that for a one-year SITA account, the expected rate per annum has been revised to 21.37% per annum.

On the other hand, the profit rates on three-year SITA have been revised downward to 18% per annum, down by 23bps.

Moreover, on a five-year SITA account, the rate has inched down by 6bps to 15.66% per annum compared to the revised rates for October 30.

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