ISLAMABAD – The Central Directorate of National Savings (CDNS) has issued anotification that it has revised profit rates on different schemes,effective from September 1, 2018.
The government has increased profit rates on National Savings Schemes inthe range of 72 to 100 basis points. This is for the third time in the pastfive months that the finance ministry has revised the rates upwards.
Saving accounts got the highest jump of 1 percent in profit rate to settleat the new rate of 6 percent per annum from 5 percent.
Profit rates on short-term savings certificates of three-, six- and12-month were revised up 0.96 percent to 7.36 percent, 7.42 percent and7.52 percent from 6.40, 6.46 and 6.56 percent, respectively.——————————
Moreover, the rate for Shudafa Welfare Certificate, Pension and Behboodincreased by 72 basis points (0.72%) respectively. The new rate would beeffective from September 1, 2018, and it would be 10.92 percent.
Rate on Special Savings Certificates (registered)/Accounts increased0.77percent to 7.87 percent from 7.10 percent. The rate on DefenceSavingsCertificates increased 0.75 percent to 9.05 percent from 8.30percent. The rate on Regular Income Certificates rose to 0.74 percent to8.78 percent from 8.04 percent respectively.
The latest increase in profit rates is third in a row during the year 2018,following the sharp rise in Pakistan Investment Bonds after the rise in thebenchmark interest rate of the State Bank of Pakistan.
According to the latest data of State Bank of Pakistan in statisticalbulletin, the investment in Behbood certificates amounted to Rs 794billion, special saving certificates Rs 381 billion, regular incomecertificates Rs 347 billion and defense saving certificates nearly Rs 336billion.
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The size of investment in national savings has reached around Rs 3.6trillion where during last fiscal year net investment was around Rs 202billion while in 2016-17 it was around 207 billion.
The Central Directorate of National Savings has recently prepared a newinstrument for attracting overseas Pakistanis, the spadework for which hasbeen completed with the approval of the Federal Cabinet remaining.
The overseas Pakistanis could invest in this product from a minimuminvestment of $1000 or equivalent to Pak rupee and will get a return ofabout six to seven percent per annum on an initial basis.
According to an official, in the first year, there has been a possibilitythat investment might amount to $500 million to $1 billion. Moreover, theseproducts will have a maturity period of three to five years.
CDNS is a premier financial institution, offering retail governmentsecurities and savings products (known as national savings scheme), on alevel playing field to small savers through diversified product mix.
