Pakistan has increased profit rates on most national savings schemes from May 26. The move comes after the State Bank of Pakistan raised interest rates in April. The new rates were announced through a Finance Division notification.
The government revised rates for eight savings instruments. However, profit rates for the Defence Savings Certificate (DSC) and the Behbood Savings Certificate will remain unchanged. Welfare linked savings schemes connected to Behbood certificates also did not see any increase.
The biggest increase was announced for the Special Savings Certificates (SSC) and the Special Savings Account (SSA). Profit rates for both schemes increased by 220 basis points for the first five half year periods. The annual profit rate moved up from 9.40% to 11.60%.
The sixth and final half year period for both schemes also saw a rise. The rate increased by 200 basis points and now stands at 12.40% per year.
Meanwhile, the Regular Income Certificate (RIC), which is popular among pensioners and families with fixed monthly income, also received a major increase. The annual profit rate on this scheme rose from 9.96% to 11.82%. This means investors will now receive higher monthly returns.
In addition, the Savings Bank Account rate increased by 100 basis points. The new annual return is now 10%.
The government also increased profit rates for Sarwa Islamic savings products. However, the increase for these Islamic schemes was slightly lower compared to other savings instruments.
The latest revision is expected to attract more investors towards national savings schemes. Higher returns may also help people manage rising inflation and living costs. Many pensioners and middle-income families rely on these schemes for stable monthly income and long term savings.
