The State Bank of Pakistan on April 16 slashed its key interest rate by 200 basis points to 9 percent, recording a cumulative 4.25% cut in just one month. Therefore, the federal government has decided to slash its profit rates on National Savings Schemes with effect from April 24.
In that regard, the Finance Division (Budget Wing) under the Minister of Finance issued a notification on April 24, the federal government issued its directives in the exercise of the powers conferred by sub-rule (1) and (2) and rule 7 of the Special Savings Certificates Rules, 1990.
Under the new rates, the profits payable on National Savings Certificates including Defence Savings Certificate, Special Savings Certificate, Regular Income Certificate, Behbood Savings Certificate, and Short Term Savings Certificate have been slashed.
Now the profit rate earned on Defense Saving Certificates (DSC) has been cut to 8.54% on Behbood Savings Certificate (BSC) 10.32%, on Special Savings Certificate (SSC) 8%, on Short Term Savings Certificate (STSC) 7%, and on Regular Income Certificate (RIC) 8.28%.
Following are the latest profit rates on national savings schemes which have been cut down by:
- 86% to 8.54% from 10.54% on DSC
- 92% to 10.32% from 12.28% on BSC
- 60% to 7% from 8.60% on STSC
- 3% to 8% from 11.13% on SSC
- 28% to 8.28% from 10.56% on RIC
The new rates have been made applicable from April 24, 2020.
Tags: National Savings, National Savings Schemes, National Savings Certificates
