ISLAMABAD: The government has cut profit rates on various National Savings Schemes (NSS) instruments, mainly as a hedge against near runaway inflation, an official statement said on Friday.
The government, however, increased the profit rate on savings accounts from 1% to 8.25%.
The revised rates will come into effect from February 4, 2022, until further revision.
This reduction in profit rates followed inflation based on the CPI (consumer price index) hitting 13%, the highest on record in two years. Rising inflation has eroded the purchasing power of fixed income groups such as wage earners and pensioners.
Official sources, while speaking to The News, said the government decided to raise the rate on the savings account after the launch of ATMs for customers.
According to the official notification issued Friday by the Central Directorate of National Savings (CDNS), the government has reduced the profit rate on Behbood savings certificates by 72 basis points to 12.24%, while on the certificate regular income, it was reduced by 48 basis points to 10.32%. .
The profit rate on special savings has been reduced from 40 basis points to 10%.
However, it is quite interesting that the government reduced the profit rates on different NSS when the discount rate was 9.75%. The key rate was increased in two consecutive meetings of the Monetary Policy Committee, while in the last meeting held in the last week of January 2022, the rate remained unchanged at 9.75%.
In addition, the profit rate on the Rs 10,000 short-term savings certificate has been set at Rs 242 for a 3-month maturity, Rs 506 for a 6-month maturity and Rs 1,020 for a 12-month maturity. month.
Profit rate on Rs100,000 in the short term
The savings certificate is now Rs 2,420 for 3 months, Rs 5,060 for 6 months and Rs 10,200 for a 12 month maturity.
The rate of Rs 10 million Short Term Savings Certificate has been set at Rs 242,000 for 3 months, Rs 506,000 for 6 months and Rs 1,020,000 for a 12 month maturity period.