Govt jacks up profit rates on saving schemes to lure investors

The government has revised rates of profit within a range of 160-240 basis points on several saving certificates to benefit investors and encourage them to invest more.

The Central Directorate of National Savings (CDNS), which works under the Ministry of Finance, announced on Thursday an increase in the rate of profit on the Pensioner Benefit Accounts, Behbood Saving Certificates, Regular Income Certificates, savings accounts, special savings accounts, and Defence Certificates.

The rate of profit on Pensioner Benefit Account and Behbood Certificate was increased by 192 basis points each to 12.96% while the rate of profit on Regular Income Certificates was revised upwards by 204 basis points to 10.80%. The new rates come into effect from tomorrow (December 10).

Meanwhile, rates on savings accounts and special savings accounts were raised by 175 and 240 basis points to 7.25% and 10.6%, respectively.

The CDNS revised upwards the rate of Defence Certificates by 161 basis points to 10.98%.

It is pertinent to mention here that the CDNS, which offers saving certificates to individual investors, reinvests the money in government papers like Pakistan Investment Bonds (PIBs) and treasury bills (T-bills).