The Central Directorate of National Savings (CDNS) has increased profit rates on several national savings schemes, effective October 21, providing higher returns to investors, including pensioners, senior citizens and families of deceased service personnel.
According to the revised schedule, the profit rate on Behbood Savings Certificates, Pensioners’ Benefit Accounts and Shuhada’s Family Welfare Accounts has been raised to 12.96 per cent from 12.72 per cent.
The increase will raise the monthly return on an investment of Rs100,000 under these schemes to Rs1,080, compared with Rs1,060 previously.
The profit rate on Regular Income Certificates has also been increased to 12.12pc from 11.76pc. Under the revised rate, an investment of Rs100,000 will generate a monthly return of Rs1,010, up from Rs980.
Similarly, the profit rate on Special Savings Certificates has risen to 12pc from 11.6pc for the first five profit payments. Investors holding certificates worth Rs100,000 will receive Rs6,000 every six months during these payments. The sixth and final payment will amount to Rs6,400, calculated at a rate of 12.8pc.
The government has also increased cumulative returns on Defence Savings Certificates across various maturity periods.
For six-year certificates, the cumulative return has been raised to 88pc from 86pc, while the return on seven-year certificates has increased to 113pc from 109pc.
The cumulative return on eight-year certificates has risen to 142pc from 136pc, while the rate for nine-year certificates has increased to 176pc from 168pc.
For certificates held over a 10-year period, the cumulative return has been raised to 215pc from 205pc.
Profit rates on Short Term Savings Certificates have also been revised upwards. The rate on three-month certificates has increased to 11.12pc from 10.80pc, while rates for longer maturities have been revised to as high as 11.72pc.
The revised schedule also provides improved returns on Sharia-compliant savings products.
Profit rates on Sarwa Islamic Term Accounts now range between 11.84pc and 12.12pc, depending on the investment period. Meanwhile, the profit rate on Sarwa Islamic Savings Accounts has increased to 11.84pc from 11.33pc.
However, the annual profit rate on ordinary Savings Accounts remains unchanged at 10pc.
According to the official schedule, profits earned through national savings schemes are subject to withholding tax at 15pc for tax filers and 30pc for non-filers.
Zakat deductions will also apply where required under the relevant rules.
The revised rates are expected to increase returns for investors across several government-backed savings products, while the unchanged rate on ordinary Savings Accounts means their returns will remain at the previous level.
