In a surprise, Federal government significantly cuts the profit rates on National Saving Schemes
ISLAMABAD - In a surprise, Federal government significantly cuts the profit rates on National Saving Schemes.
The government has reduced the profit rates on various National Savings’ schemes, effective from November 1, 2019.
According to a directive issued by the Central Directorate of National Savings (CDNS),
- Profit rates on the Defence Saving Certificate have been cut by 2.33% to 10.68%. - On Pension Behbood the rate has been cut by 2.28% to 12.48%. - 2.04% reduction on Regular Income Certificate to 10.92%. - 1.70% drop on Special Saving Certificate to 11%. - On saving accounts, the rate has been slashed by 2.05% to 8.20%.
Since July 1, 2019, the rates were 12.90% for Special Saving Certificates, 12.96% for Regular Income Certificates, 13.01% for Defence Saving Certificates and 14.76% for Behbood Saving Certificates and pensioners benefit certificates.
This has been done in line with declining secondary market yields on bonds.
Since the last few months, the yield on secondary market bonds has been declining and the economic experts believe that this was expected that the government was going to cut the rates at some point.