National savings profit rates increased from October 21

The government has raised returns on several National Savings schemes, including those designed for pensioners, senior citizens and families of martyrs, with the revised rates coming into effect on October 21.

Under the new schedule issued by the Central Directorate of National Savings (CDNS), the annual profit rate on Behbood Savings Certificates, Pensioners’ Benefit Accounts and Shuhada’s Family Welfare Accounts has increased from 12.72pc to 12.96pc.

For an investment of Rs100,000, the change means a monthly return of Rs1,080, up from Rs1,060.
Regular Income Certificates will now offer an annual profit rate of 12.12pc, compared with 11.76pc previously. The monthly return on Rs100,000 invested in the scheme has consequently risen from Rs980 to Rs1,010.

Special Savings Certificates will pay profit at 12pc for the first five six-monthly payments, up from 11.6pc. Investors with Rs100,000 in the scheme will receive Rs6,000 for each of these payments. The sixth and final payment will be Rs6,400, calculated at a rate of 12.8pc.

The revised schedule also increases cumulative returns on Defence Savings Certificates across different maturity periods.

The cumulative return on six-year certificates has risen from 86pc to 88pc, while the rate for seven-year certificates has increased from 109pc to 113pc. Returns on eight-year certificates have gone up from 136pc to 142pc, and those on nine-year certificates from 168pc to 176pc.

For certificates held for 10 years, the cumulative return has increased from 205pc to 215pc.

Short Term Savings Certificates will also offer higher rates. The rate for three-month certificates has risen from 10.80pc to 11.12pc, while rates for longer maturities now reach 11.72pc.

Returns have been increased on Sharia-compliant savings products as well. Profit rates on Sarwa Islamic Term Accounts now range from 11.84pc to 12.12pc, depending on the maturity period. The rate on Sarwa Islamic Savings Accounts has risen from 11.33pc to 11.84pc.

The rate on ordinary Savings Accounts, however, remains unchanged at 10pc per annum.

According to the official schedule, withholding tax on profits is 15pc for tax filers and 30pc for non-filers. Zakat will also be deducted where applicable under the relevant rules.