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Markets

National Saving Schemes: CDNS revises rates of return downwards

Published Updated

The Central Directorate of National Savings (CDNS) has revised the rates of return on some of its National Savings Schemes.

The rates of Special Savings Certificates (SSC) have been reduced by 160bps to 16.4% from 18% earlier.

Short Term Savings Certificates (STSC) will now yield 20.8% instead of the earlier 21.72%, a decrease of 92bps.

In addition, the return on Regular Income Certificates (RIC) has been reduced to 15.12% from 16.08%, a decrease of 96bps.

Meanwhile, the rates of Bahbood Savings Certificates (BSC), Shuhda Family Welfare Account and Pensioners Benefit Account (PBA) have been marginally reduced by 24bps to 16.08% from 16.32% earlier.

The change in the rate of return will take effect from December 19 onward.

The revision in rates of savings schemes came after the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) kept the key interest rate unchanged at 22% earlier this month.

The MPC said it “continues to expect that headline inflation will decline significantly in the second half of FY24 due to contained aggregate demand, easing supply constraints, moderation in international commodity prices and favorable base effect.”

The Consumer Price Index (CPI)-based inflation clocked in at 29.2% on a year-on-year basis in November 2023 as compared to the reading in October when it stood at 26.9%, according to the Pakistan Bureau of Statistics (PBS).

Comments

Comments are closed for this article.

Syed Shahzad Quadri Dec 20, 2023 05:36pm
Then Investment in Certificate of investment (COI) is still lucrative. One month fixed at 21.75%.
0
Nasir Dec 20, 2023 11:13pm
Is this for new certificate investors or the olders ones too may be the losers ?
0
MAhmed Dec 21, 2023 01:08am
@Nasir Previous rates are applied for existing savers until their purchased certificate expires such as Special saving and ST saving certificates while for some rates vary even for old savers like Behbood
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MAhmed Dec 21, 2023 01:09am
At least our principal is saved
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Aurangzeb Dec 21, 2023 02:53am
Good
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Aurangzeb Dec 21, 2023 02:54am
Very good Hani
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Aam Aadmi Dec 21, 2023 06:48am
Defence Savings Certificates have not been touched. Dare you?
0
AlGore Dec 21, 2023 09:33pm
This z not gud in a country brimming with poverty struck people.It s cherished source of income for poor people
0
Tariq Hanif Agha Dec 22, 2023 10:39am
Sir,Behbood rates have to be increased by 200 basis points at least. Commercial banks are paying 21.50%,where as Behbood rate is 16.08%. It is a futile exercise to keep money in Behbood scheme now. Govt should increase Behbood rates. I foresee,Monetary policy rate by SBP will be further reduced in upcoming monetary policies over a period of time. It is humbly requested,Govt should increase thr rates of Behbood certificates. Thanks a lot sir, I am not an economist,but a lay man.
0
Moazzam Mir Dec 22, 2023 11:02am
@Tariq Hanif Agha, Behbood certificates are issued for a period of 10 years. This guarantees that any further decrease in profit rates over this 10 year period will not effect the purchaser, and benefit of any increase in profit rates will be passed on to the purchaser. So it's still a good investment for retired persons.
0
عاقل فاضل Dec 22, 2023 02:29pm
@MAhmed, یه سب حرام ھے توبه کریں
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Troy Dec 22, 2023 04:27pm
@Tariq Hanif Agha, commercials banks offered rate is for one year only behbood certificate is for ten years this is the catch
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Tariq Hanif Agha Dec 22, 2023 04:32pm
@Moazzam Mir, I know all this,only I am saying that people will drift to commercial banks due to higher rates of intt there. No body is a goof now Every body knows every thing.
0
nms Dec 30, 2023 02:08am
National Saving is running a scam, inflation is 29% and they are paying you 20.8% minus 15% tax. That means your net lose would be 11 or 12% per year. Crazy people. Keep everything in dollars or buy gold.
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Syed Qasim 2021 to date Feb 28, 2024 09:18am
Need profit rate of Behbood Certificye from June 2021 to date
0