National Savings increases rate of profit on various products
Saving accounts witnessed high jump of 1% and new rate would by 6% per annum, Directorate said.
(Web Desk) - The National Savings Directorate has increased the rate of profit on different plans which would be effective from September 1, 2018 on new issuance, rising by one percent to 72 basis points.
Saving accounts witnessed high jump of 1 percent and new rate would by 6 percent per annum, said the notification of Central Directorate of National Savings. Moreover, the rate for Shudafa Welfare Certificate, Pension and Behbood increased by 72 basis points respectively. The new rate would be effective from September 1, 2018, and it would be 10.92 percent.
Special Savings recorded an increase of 80 basis points to 7.60 percent, regular income certificate up by 74 basis points to 8.78 percent and Defense certificate up by 75 basis points to 9.05 percent.
The rate increase has been third in the row during 2018 following the sharp rise in Pakistan Investment Bonds after rise in benchmark interest of the State Bank of Pakistan.
Discount rate or benchmark interest rate was unchanged from May 2016 to January 2018 but it started creeping up and from 6.25 percent it is currently stood around 8 percent. Likewise the rates of NSS also remained stagnant from February 2017 to May 2018.
Similarly from May 2018 to date the defense certificate rate of profit rose from 7.54 percent to 9.05 percent, up by 1.51 percent. Behbood and Pension certificates increased by 1.56 percent, special saving certificates rose 1.60 percent, regular income certificate up by 1.94 percent and saving accounts up by 2.05 percent. The rates applicable in February 2017 for behbood and pension was 9.36 percent, special savings certificates 6 percent, regulaor income certificate 6.54 percent and on saving accounts 3.95 percent.
According to the latest data of State Bank of Pakistan in statistical bulletin, the investment in behbood certificates amounted to Rs 794 billion, special saving certificates Rs 381 billion, regular income certificates Rs 347 billion and defense saving certificates nearly Rs 336 billion.
The size of investment in national savings has reached around Rs 3.6 trillion where during last fiscal year net investment was around Rs 202 billion while in 2016-17 it was around 207 billion.
The Central Directorate of National Savings has recently prepared a new instrument attracting overseas Pakistanis. The spade work has been completed and now only approval of Federal Cabinet has been required. The overseas Pakistan could invest in this product from minimum investment of $1000 or equivalent to Pak rupee and they will get return of almost six to seven percent per annum on initial basis.
According to an official in first year there has been a possibility that investment might amount to $500 million to $1 billion. These products will have a maturity of three to five years.
