Profit rates on National Saving Schemes slashed

The government has reduced interest rates on National Savings Schemes.

The reduction in profit rates on schemes, including Shuhada Family Welfare Accounts and Pensioners' Benefit Accounts, will take effect from May 19.

According to a notification issued by the Finance Ministry, the rate of profit on Shuhada Family Welfare Accounts and Pensioners Benefit Accounts has been reduced from 11.52 percent to 11.04pc while the monthly profit on Regular Income Certificate has been reduced by Rs.600 to Rs.7200.

The notification said that the annual profit on short-term savings certificates of Rs 500,000 was also reduced by Rs 500, after which the profit has come down from Rs 37,000 to Rs 36,500.

According to the Ministry of Finance, the profit on special savings accounts has been reduced from 9.20 percent to 9pc while the current rate of annual profit on Defense Savings Certificates will remain the same.