ISLAMABAD (our reporter):- The government has revised the profit rate on several national savings certificates and slashed remunerations by 72 basis points.

Pursuant to the Finance Division’s notification for the revision in the rates of Defence Saving Certificates (DSCs), Bahbood Savings Certificates (BSCs), Pensioners’ Benefit Accounts (PBAs), Shuhada’s Family Welfare Accounts (SFWAs), Regular Income Certificates (RICs), Short-Term Savings Certificates (STSCs), Special Savings Certificates (SSCs), Special Savings Accounts (SSAs), and Savings Accounts, the government has revised the profit rate downwards, effective immediately from 4 February (today).

The rate of return on Regular Income Certificates (RICs) has been cut by 48 basis points to 10.32 percent. The Behbood Savings Certificates’ (BSC) rate of profit has been cut by 72 basis points to 12.24 percent, and the profit rate on Special Savings Certificates (SSC) has been slashed by 40 basis points to 10 percent by the directorate.

CertificateCurrentPreviousChange (BPS)
Defense Saving Certificates (DSC)11.12%11.12%0
Bahbood Savings Certificates (BSC)12.24%12.96%72
Regular Income Certificates (RIC)10.32%10.80%48
Special Savings Certificates (SSC)10.00%10.40%220

The annual rate of return on Shuhada’s Family Welfare Account has decreased from 12.96 percent to 12.24 percent.
Moreover, the half-yearly profit on the Special Savings Certificate has been reduced from 5.80 percent to 5.20 percent, and the rate of the annual profit has been cut from 11.60 percent to 10.40 percent.
Additionally, the monthly rate of return on the regular income certificates has also fallen. According to the revised rates, the profit payable on Rs. 500,000 certificates will be Rs. 4,300 per month instead of Rs. 4,500. Similarly, a certificate of Rs. 10,000,000 will yield a profit of Rs. 86,000 instead of Rs. 90,000.

The monthly rate of return on the Behbood Savings Certificates has also been reduced. The revised rates indicate that a denomination of Rs. 100,000 will yield Rs. 1,020 instead of Rs. 1,080. Similarly, a Rs. 10,000,000 million denomination will pay a profit of Rs. 10,200 instead of Rs. 10,800.

For short-term players, the Finance Division has decreased annual profits on Short-Term Savings Certificates for 03, 06, and 12 months maturities. The Rs. 500,000 paper will yield Rs. 51,000 profit on a maturity period of 12 months, Rs. 25,300 for the 6-month paper, and Rs. 12,100 for the 3-month paper.

The annual rate of return on the Defence Savings Certificates was maintained, as the table shows.

Other miscellaneous revisions on profit rates suggest that the profit rate on Savings Bank Accounts has been elevated from 7.25 percent to 8.25 percent. The Finance Division maintained that the new profit rates will take effect from today.

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