Pakistan has revised profit rates on several National Savings schemes, increasing returns for pensioners, senior citizens and other investors while keeping the ordinary savings account rate unchanged.
The government has increased profit rates on several National Savings schemes, offering higher returns to pensioners, senior citizens, families of martyrs and other investors. The revised rates took effect on Oct. 21, according to the Central Directorate of National Savings (CDNS).
Under the updated schedule, profit rates on Behbood Savings Certificates, Pensioners’ Benefit Accounts and Shuhada’s Family Welfare Accounts have increased from 12.72% to 12.96%.
The revision means investors with Rs100,000 in these schemes will receive a monthly profit of Rs1,080, compared with Rs1,060 previously, according to the revised figures.
Regular Income Certificates Offer Higher Monthly Returns
The profit rate on Regular Income Certificates has risen from 11.76% to 12.12%. Investors holding Rs100,000 in these certificates will now receive Rs1,010 per month, up from Rs980.
Special Savings Certificates have also received higher rates. The profit rate for the first five semiannual payments has increased from 11.6% to 12%, providing Rs6,000 every six months on an investment of Rs100,000.
The sixth and final payment will be calculated at an annual rate of 12.8%, amounting to Rs6,400 on the same investment, according to the revised schedule.
Defence Savings Certificates See Higher Cumulative Returns
The government has increased cumulative returns on Defence Savings Certificates across several maturity periods.
The cumulative return on six-year certificates has risen from 86% to 88%, while the seven-year return has increased from 109% to 113%.
For longer investment periods, the cumulative return on eight-year certificates has increased from 136% to 142%. The return on nine-year certificates has risen from 168% to 176%, while the 10-year return has increased from 205% to 215%.
Short-Term and Islamic Savings Schemes Also Revised
Short Term Savings Certificates have also received higher profit rates. The rate on three-month certificates has increased from 10.80% to 11.12%, while rates for longer maturities have been revised upward, reaching as high as 11.72%.
Sharia-compliant savings products have also become more attractive under the revised schedule. Profit rates on Sarwa Islamic Term Accounts now range from 11.84% to 12.12%, depending on the investment period. The rate on Sarwa Islamic Savings Accounts has increased from 11.33% to 11.84%.
However, the annual profit rate on ordinary National Savings Accounts remains unchanged at 10%.
Tax Deductions Remain Unchanged
According to the CDNS schedule, withholding tax on profits remains 15% for tax filers and 30% for non-filers. Zakat deductions will also apply where required under the relevant rules.
The revised rates increase potential earnings across several government-backed savings products. However, the final amount investors receive will depend on the scheme, investment period, applicable taxes and any required deductions.
Investors should consult the latest official CDNS schedule to confirm the applicable rate, payment terms and net return before making investment decisions.
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