Key Takeaways
- Profit rates on Behbood Savings Certificates and other schemes increased from October 21.
- Investors in Regular Income Certificates will now earn higher monthly returns.
- Cumulative returns on Defence Savings Certificates across different maturity periods have been raised.
The government has announced an increase in profit rates on several national savings schemes, effective from October 21. This move aims to boost the returns for investors in various savings accounts.
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 per cent from 12.72 per cent. This increase will raise the monthly profit on an investment of Rs100,000 under these schemes to Rs1,080 from Rs1,060.
Similarly, the profit rate on Regular Income Certificates has been increased to 12.12 per cent from 11.76 per cent. The revised rate will provide a monthly return of Rs1,010 on an investment of Rs100,000, compared with Rs980 previously.
The profit rate on Special Savings Certificates has been increased to 12 per cent from 11.6 per cent for the first five profit payments. Under the revised schedule, investors will receive Rs6,000 on an investment of Rs100,000 every six months, while the sixth and final profit payment will be Rs6,400 at a rate of 12.8 per cent.
The government has also raised cumulative profit rates on Defence Savings Certificates across different maturity periods. For six-year certificates, the cumulative return has increased to 88 per cent from 86 per cent, while the seven-year return has risen to 113 per cent from 109 per cent. Similarly, the eight-year return has increased to 142 per cent from 136 per cent, while the nine-year return has been raised to 176 per cent from 168 per cent. The cumulative return on certificates held for 10 years has increased to 215 per cent from 205 per cent.
Profit rates on Short Term Savings Certificates have also been revised upwards. The rate on three-month certificates has increased to 11.12 per cent from 10.80 per cent, while the revised schedule provides rates of up to 11.72 per cent for longer maturities.
The government has also increased returns on Sharia-compliant savings schemes. Profit rates on Sarwa Islamic Term Accounts now range between 11.84 per cent and 12.12 per cent for different maturities, while the rate on Sarwa Islamic Savings Accounts has been raised to 11.84 per cent from 11.33 per cent.
However, the profit rate on ordinary Savings Accounts has been maintained at 10 per cent per annum. According to the official schedule, profits on national savings schemes are subject to withholding tax at 15 per cent for filers and 30 per cent for non-filers, while Zakat deductions apply where prescribed under the relevant rules.
