Islamabad, Dec 11: The federal government has announced a substantial reduction in the profit rates for various National Savings schemes, effective from December 11.
The National Savings Department confirmed that the profit rate for savings accounts has dropped from 16% to 13.5%, marking a decrease of 250 basis points. This adjustment is part of a broader revision of interest rates for several savings schemes.
In addition to the change in savings account rates, the profit rates for Regular Income Certificates and Defense Savings Certificates have also been reduced.
The profit rate for Regular Income Certificates has fallen by 10 basis points, now standing at 12.1%. Moreover, profit rates for short-term savings certificates have been adjusted, though specific details have not yet been disclosed.
The government has also revised the profit rates for other schemes, including the Islamic Savings Account, which now offers a rate of 10.44% after a reduction of 72 basis points. This move highlights the government’s broader focus on macroeconomic goals, particularly in light of declining interest rates and rising inflation.
These changes, especially the reduction in rates for Islamic Savings Accounts, are expected to affect savings-oriented investors. However, given the broader economic context, these adjustments may be seen as part of the government’s ongoing strategy to manage inflation and stimulate economic recovery. With further reductions in the SBP key policy rate possible, these revisions may align with long-term economic objectives.
