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CDNS cuts profit rates on most savings schemes

Our Correspondent
Wednesday, May 15, 2024

KARACHI: The Central Directorate of National Savings (CDNS) on Tuesday tweaked rates on its National Savings Schemes, lowering returns on some instruments while boosting others, effective May 14.

The state-run savings institution, which provides a variety of deposit schemes for individual savers, reported a cut in the profit rates for special savings accounts, pensioners' benefit accounts, regular income certificates, Behbood savings certificates and Shuhada family welfare account.

The CDNS has decreased the rates on its Special Savings Certificates (SSC) by 10 basis points (bps) to 15.70 percent from 15.80 percent. The Regular Income Certificates (RIC) also saw a reduction, now offering a 14.64 percent return, down from 14.76 percent, a decrease of 12bps.

The rates on Bahbood Savings Certificates (BSC), Pensioners Benefit Account (PBA), and Shuhada Family Welfare Account (SFWA) have all been reduced to 15.36 percent, a decline of 24bps.

The Defence Savings Certificate experienced a marginal cut by 1bps, now standing at a 14.39 percent return.The CDNS raised the rates on Short Term Savings Certificates (STSC) by 24bps to 19.24 percent. The Sarwa Islamic Term Account (SITA) saw a significant increase of 56bps, now offering a 19.1 percent rate.

The profit rates for the Saving Account and Sarwa Islamic Saving Account (SISA) remain unchanged at 20.5 percent.The new rate for the savings account, applicable to accounts where withdrawals are made through methods other than cheques, is effective from May 14.

The CDNS has dispatched revised rate sheets to all regional offices, instructing that the existing stock of blank certificates will now be issued at the new rates.

The move marks the fourth rate revision in five months, as the CDNS seeks to balance investor demand with inflation concerns. The headline inflation eased to 17.3 percent in April, down from 20.7 percent in March.The NSS rates are linked with Pakistan Investment Bonds (PIB) for medium and long-term instruments, and with Treasury bills (T-bills) for short-term securities.