The government has increased profit rates on several National Savings schemes, offering higher returns to pensioners, senior citizens, families of martyrs and other investors. The revised rates came into effect on October 21, according to the Central Directorate of National Savings (CDNS).
Under the updated schedule, profit rates on Behbood Savings Certificates, Pensioners’ Benefit Accounts and Shuhada’s Family Welfare Accounts have been raised from 12.72 per cent to 12.96 per cent.
The increase means investors will now receive a monthly profit of Rs1,080 on an investment of Rs100,000, compared with Rs1,060 previously.
The profit rate on Regular Income Certificates has also been increased from 11.76 per cent to 12.12 per cent. Investors holding Rs100,000 in these certificates will receive a monthly return of Rs1,010, up from Rs980.
Special Savings Certificates have also become more attractive under the revised schedule. The profit rate for the first five six-monthly payments has increased from 11.6 per cent to 12 per cent. This will provide investors with Rs6,000 every six months on an investment of Rs100,000. The sixth and final payment will be calculated at an annual rate of 12.8 per cent, amounting to Rs6,400.
The government has also raised cumulative returns on Defence Savings Certificates across different maturity periods. The return on six-year certificates has increased from 86 per cent to 88 per cent, while the seven-year return has risen from 109 per cent to 113 per cent.
For longer investment periods, the cumulative return on eight-year certificates has increased from 136 per cent to 142 per cent. The rate for nine-year certificates has risen from 168 per cent to 176 per cent, while the return on 10-year certificates has increased from 205 per cent to 215 per cent.
Short Term Savings Certificates have also received higher rates. The profit rate on three-month certificates has increased from 10.80 per cent to 11.12 per cent, while rates for longer maturities have been revised upwards, reaching as high as 11.72 per cent.
The revised schedule also provides improved returns on Sharia-compliant savings products. Profit rates on Sarwa Islamic Term Accounts now range from 11.84 per cent to 12.12 per cent, depending on the investment period. The rate on Sarwa Islamic Savings Accounts has increased from 11.33 per cent to 11.84 per cent.
However, the government has kept the annual profit rate on ordinary National Savings Accounts unchanged at 10 per cent.
According to the CDNS schedule, withholding tax on profits remains 15 per cent for tax filers and 30 per cent for non-filers. Zakat deductions will also apply where required under the relevant rules.
The revised rates offer improved returns across several government-backed savings products, although the amount investors ultimately receive will depend on the scheme, investment period, applicable taxes and any required deductions.
