Summary The government has raised profit rates on several national savings schemes from October 21, increasing returns for pensioners, senior citizens
ISLAMABAD, Pakistan (Web Desk) - The government has increased profit rates on several national savings schemes, including those designed for pensioners, senior citizens and families of martyrs, with the revised rates taking effect from October 21.
According to the revised schedule issued by the Central Directorate of National Savings (CDNS), the profit rate on Behbood Savings Certificates, Pensioners’ Benefit Accounts and Shuhada’s Family Welfare Accounts has been raised to 12.96% from 12.72%.
The revision increases the monthly profit on an investment of Rs100,000 in these schemes to Rs1,080 from Rs1,060.
The profit rate on Regular Income Certificates has also been increased to 12.12% from 11.76%. Under the new rate, an investment of Rs100,000 will yield Rs1,010 per month, compared with Rs980 previously.
For Special Savings Certificates, the profit rate for the first five profit payments has been raised to 12% from 11.6%. Investors holding certificates worth Rs100,000 will receive Rs6,000 every six months for the first five payments, while the sixth payment will amount to Rs6,400 at a rate of 12.8%.
The government has also revised cumulative returns on Defence Savings Certificates across different maturity periods.
The cumulative return on six-year certificates has increased to 88% from 86%, while the return on seven-year certificates has risen to 113% from 109%.
For eight-year certificates, the cumulative return has been raised to 142% from 136%. The return on nine-year certificates has increased to 176% from 168%, while the 10-year return has risen to 215% from 205%.
Short Term Savings Certificates have also received higher rates. The profit rate on three-month certificates has increased to 11.12% from 10.80%, with rates for longer maturities reaching up to 11.72%.
Sharia-compliant savings products have also seen upward revisions. Profit rates on Sarwa Islamic Term Accounts now range from 11.84% to 12.12%, depending on the maturity period. The rate on Sarwa Islamic Savings Accounts has increased to 11.84% from 11.33%.
However, the profit rate on ordinary Savings Accounts remains unchanged at 10% per annum.
According to the revised schedule, withholding tax on profits is applicable at 15% for tax filers and 30% for non-filers. Zakat deductions will also apply where required under the relevant rules.
The revised rates are expected to benefit investors relying on national savings products for regular income, particularly pensioners and senior citizens, although actual returns will depend on applicable taxes and other deductions.
