National Savings reduces profit rates on key savings schemes by up to 250 bps

ISLAMABAD: The Central Directorate of National Savings (CDNS) has once again reduced profit rates on most of its savings schemes, with some cuts reaching up to 250 basis points (bps). These new rates came into effect on December 10.

The largest reduction of 250 bps applies to the Savings Account (SA), lowering its rate to 13.5 per cent. The Sarwa Islamic Savings Account (SISA) and Sarwa Islamic Term Account (SITA) saw decreases of 72 bps each, bringing their profit rates down to 10.44 per cent.

Special Savings Accounts & Certificates (SSA-SSC) and Regular Income Certificates (RIC) were also affected, with reductions of 50 bps and 12 bps, respectively.

However, profit rates for the Bahbood Savings Certificates (BSC), Pensioner Benefit Account (PBA) and Shuhada Family Welfare Account (SFWA) remained unchanged at 13.92 per cent.

These rate adjustments are part of the government’s strategy to align National Savings rates with the country’s broader economic goals, particularly in response to declining interest rates and easing inflation.

Pakistan’s central bank is expected to further lower its key interest rate at its next policy meeting on December 16 as it continues efforts to stabilise the economy.

Since June, the State Bank of Pakistan has cut the policy rate from a record high of 22 per cent to 15 per cent, with the latest reduction of 250 bps occurring in November.

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