Tag: CDNS

  • Return rate adjustments implemented for National Savings Schemes

    Return rate adjustments implemented for National Savings Schemes

    The Central Directorate of National Savings (CDNS) has implemented adjustments in the rates of return across several National Savings Schemes, marking the fifth revision in the past five months.

    According to Topline Securities, notable alterations include a reduction in rates for the Special Savings Certificates (SSC), which now stand at 15.70 per cent, down by 10 basis points (bps) from the previous 15.8 per cent.

    Similarly, the Regular Income Certificates (RIC) will yield a return of 14.64 per cent, reflecting a decrease of 12 bps from the prior 14.76 per cent.

    Conversely, rates for Bahbood Savings Certificates (BSC), Pensioners Benefit Account (PBA), and Shuhada Family Welfare Account (SFWA) have been adjusted to 15.36 per cent, following a decrease of 24 bps.

    Meanwhile, the Defence Savings Certificate saw a minor decrease of 1 bps, now offering a return of 14.39 per cent.

    In contrast, Short Term Savings Certificates (STSC) experienced an increase of 24 bps, with rates elevated to 19.24 per cent.

    Additionally, the Sarwa Islamic Term Account (SITA) will provide a return of 19.1 per cent, marking a significant increase of 56 bps.

    The profit rates for Saving Account and Sarwa Islamic Saving Account (SISA) remain steady at 20.5 per cent each.

    These adjustments, effective from May 14, 2024, indicate a strategic move by CDNS to align returns with prevailing market conditions and investment dynamics.

  • Govt increases profit rates on national saving schemes following record policy rate hike

    Govt increases profit rates on national saving schemes following record policy rate hike

    In response to increasing policy rates, the Pakistani government has announced significant raises in profit rates for all national savings schemes (NSS) from April 10, 2023. This decision follows the State Bank of Pakistan’s (SBP) considerable increase in the policy rate to a record 21 per cent in its recent Monetary Policy Committee meeting to combat inflation.

    The Finance Division announced on Friday, through a notification issued under Rule-II of the Pensioners’ Benefit Accounts Rules, 2003, that the rate of profit on deposits made in Pensioners’ Benefit Accounts and Behbood Savings Certificates will be 16.56 per cent per annum from April 10, 2023, until further notice.

    Additionally, the rate of profit on deposits made in Shuhada’s Family Welfare Account will be 16.56 per cent per annum from April 10, 2023, until further notice.

    The Central Directorate of National Savings (CDNS) has also increased the profit rate on Defence Saving Certificates from 9.29 per cent to 14.87 per cent. The profit rate on Regular Income Certificates has been raised to 12.84 per cent of the total investment.

    Similarly, the profit margin on the three-year Special Saving Certificates and Special Savings Account has been increased to 17 per cent for the first five profits and to 17.8 per cent for the sixth profit. Furthermore, the return on Saving Accounts (running accounts) has been raised to 18.5 per cent. However, it’s worth noting that there will be a deduction of Withholding Tax and Zakat as per the rules.