Profit rates on National Savings schemes increased from Oct 21

Islamabad, Pakistan has raised profit rates on various National Savings schemes, including those for pensioners, senior citizens, and families of martyrs. The revised rates will become effective starting October 21. The profit rate on Behbood Savings Certificates, Pensioners’ Benefit Accounts, and Shuhada’s Family Welfare Accounts has been increased to 12.96 percent from 12.72 percent.

This will raise the monthly profit on a Rs100,000 investment to Rs1,080 from Rs1,060. The profit rate on Regular Income Certificates has been raised to 12.12 percent from 11.76 percent, providing a monthly return of Rs1,010 on a Rs100,000 investment, compared to the previous Rs980. The profit rate on Special Savings Certificates has also been increased to 12 percent from 11.6 percent for the first five profit payments.

Investors will receive Rs6,000 every six months on a Rs100,000 investment at the increased rate, with the sixth and final payment of Rs6,400 at 12.8 percent. The government has also raised cumulative profit rates on Defence Savings Certificates for various maturity periods, with six-year certificates now offering a 88 percent return, up from 86 percent, and seven-year certificates now yielding 113 percent, up from 109 percent.

The increased returns extend to eight-year certificates at 142 percent, up from 136 percent, and nine-year certificates at 176 percent, up from 168 percent. Additionally, the government has revised upward profit rates on Short Term Savings Certificates, with three-month certificates now at 11.12 percent from 10.80 percent and longer maturities at up to 11.72 percent.

The government has also raised returns on Sharia-compliant savings schemes, with profit rates on Sarwa Islamic Term Accounts now ranging from 11.84 percent to 12.12 percent and on Sarwa Islamic Savings Accounts at 11.84 percent, up from 11.33 percent. However, the profit rate on ordinary Savings Accounts remains at 10 percent per annum.

Profit rates on national savings schemes are subject to withholding tax at 15 percent for filers and 30 percent for non-filers, with Zakat deductions applying as prescribed under relevant rules.