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Profit rates on saving schemes raised by up to 2.74pc

ISLAMABAD: In line with a continuous hike in the central bank’s interest rates, the Central Directorate of National Savings (CDNS) on Tuesday increased profit margins on all national savings schemes by up to 2.74 per cent.

The new rates would be applicable to deposits and investments made with effect from January 1, 2019.

This is the 5th increase in returns on national savings since June 30 last year. According to notifications seen by Dawn, the CDNS, working under the ministry of finance, increased the rate of Defence Saving Certificate (DSC) to 12.47pc from 10.03pc. It stood at 8.10pc on June 30.

Likewise, the returns on Behbood Saving Certificates, Pensioners’ Benefit Account and Shuhadas’ Family Welfare Account were jacked up to 14.28pc from 11.88pc. The return on these schemes stood at 10.8pc at the end of June last year.

The return on Regular Income Certificates was increased to 12pc of total investment compared to existing rate of 9.72pc that has improved from 7.63pc since June 30. The profit margin on Special Saving Certificates and Special Saving Accounts were also raised to 11.40pc from 8.60pc. The return on this scheme stood at 6.60pc in June.

Also, the return on savings certificates having 3-12 month tenure was also increased to 9.98pc from 8.48pc that stood at 5.92pc in June.

Similarly, the Savings Account would now get 8.50pc instead of 7pc. It stood at 4.50pc on June 30.

The CDNS has dispatched revised rates sheets to all the regional offices with instructions that existing stock of blank special savings certificates, regular income certificates and defence saving certificates would now be used by affixing rubber stamps with Issue48, Issue45 and Issue44, respectively, along with revised rates before issuance.

Officials said the profit rates were revised owing to 150 basis point increase (from 8.5 to 10pc) in benchmark interest rates annou­nced by the State Bank of Pakistan on Nov 30, 2018.

The rates of national savings schemes are announced after every two months and are linked to cut-off yield of long-term Pakistan Investment Bonds.

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