Business Tech

Govt raises profit rates on saving schemes

saving - Govt raises profit rates on saving schemes

KARACHI: The Central Directorate of National Savings (CDNS) has announced an increase in the profit rates up to 240 basis points (2.4 percent) for various saving schemes.

According to a notification, the rate has been increased by 240 basis points to 10.6 percent from 8.20 percent on profit derived from the special savings account. The profit rate on regular income certificates has been increased 204 basis points to 10.8 percent from 8.76 percent.

The profit rates on pension and Behbood certificates have been increased 192 basis points on each scheme to 12.96 percent from 11.04 percent. Similarly, the profit rate has been increased 175 basis points to 7.25 percent from 5.5 percent on saving accounts.

Meanwhile, the profit rate on defence saving certificates has been increased 161 basis points to 10.98 percent from 9.37 percent. The new profit rates are applicable with effect from December 10, 2021.

Analysts said the latest changes in the profit rates has been made after the massive rise in the interest rate announced by the State Bank of Pakistan (SBP) in its last monetary policy statement.

The central bank in its policy statement on November 19, 2021, increased the key policy rate by 150 basis points to 8.75 percent.

The State Bank of Pakistan (SBP) is scheduled to announce the monetary policy on December 14, 2021, in which the central bank is likely to further increase the policy rate by 100 basis points to 150 basis points.

Related posts