Government increases profit rates on saving schemes

ISLMABAD:-The government has increased the profit rates on all National Savings schemes by up to 2.4 percent, the Ministry of Finance said in a notification.

The return on pension, Bahbood savings certificate, regular income certificate, saving accounts, special saving account and defence certificate have been increased with effect from December 10.

According to the notification, the rate of profit on a pension certificate has been increased from 11.04 percent to 12.95 percent, with an increase of 192 basis points (bps).

The profit rate on Bahbood savings certificates increased to 12.96 percent while the return on special savings certificates has been increased by 240 bps. The revised profit rate is 10.60 percent.

While the return on defence savings certificates has been increased by 161 bps to 10.98 percent and the return on a special saving account increased by 106 bps.

Regular income certificate, on the other hand, has seen an increase of 204 bps, taking it to 10.86 percent.

The new profit rates will be applicable from December 10. The authorities increased the profit rates last in June 2021.

Earlier this year in May, the profit rates were reduced on the saving certificates.

The announcement comes after a major increase in the policy rate. Experts believe the government plans to further jack up the interest rate this month.