- The government is revising rates downwards within a range of 40 to 72 basis points for the benefit of investors.
- CDNS significantly reduces the rate of profit on retiree benefit accounts, regular income certificates, etc.
- The new tariffs came into effect from today.
The government cut the profit rate by 40 to 72 basis points on various savings schemes, making it difficult to achieve the target of mobilizing investment through the mainstream schemes in the fiscal year In progress.
The Central Directorate of National Savings (CDNS) – which falls under the Ministry of Finance – on Friday announced a drop in the profit rate on pensioner benefit accounts, Behbood savings certificates, regular income certificates, special savings accounts and defense certificates.
Meanwhile, increased profit rates on savings accounts.
The profit rate on the Retirement Benefit Account and the Behbood Certificate has been decreased by 72 basis points each to 12.24%, while the profit rate on the Regular Income Certificates has been revised down by 48 basis points at 10.32%. The new tariffs came into effect today (4 February).
Rates on special savings accounts were reduced by 40 basis points to 10%, respectively.
The CDNS revised the rate of defense certificates downwards to 10.40% from 11.12%. While he raised rates on savings accounts from 1% to 8.25%.
It is relevant to mention here that the CDNS, which offers savings certificates to individual investors, reinvests the money in government securities like Pakistan Investment Bonds (PIBs) and Treasury Bills (T-bills) .