Federal Government Slashes Savings Rates!

The federal authorities have slashed the profit percentages across various national savings schemes by as much as 2%, in line with the recent 100 basis point reduction in the policy rate by the State Bank of Pakistan, now set at 12%.

For instance, the yearly profit on Regular Income Certificates has decreased from 12% to 11.88%. Short-term investment options also witnessed a drop, with the return on three-month certificates now at Rs2,810 for every Rs100,000, a decline from Rs3,190.

Likewise, the return on Defence Savings Certificates is now 14.22%, down from the previous 14.41%. Behbood Savings and Pensioners’ Certificates have seen a similar reduction, bringing the rate down from 13.92% to 13.68%. The same percentage cut applies to Shaheed Families Welfare Accounts, now offering 13.68% instead of 13.92% annually.

The interest rate for savings accounts has also been revised, falling from 13.50% to 11.50%. However, returns on Special Savings Certificates, Special Savings Accounts, Serva Islamic Term Accounts, and Serva Islamic Savings Accounts remain unaffected