ISLAMABAD: The Central Directorate of National Saving (CDNS) on Monday increased rates on various savings certificates aimed at promoting savings culture in the country.
“The CDNS notified the upward revision in the profit rates for various saving certificates with effect from July 1st (2019), encouraging people to invest in various schemes of the directorate,” a senior official of CDNS told APP here.
The official was of the view that the upward revision of these certificates would generate more revenues that could be utilized as budgetary support by the government to overcome budget deficit problems.
He informed that the new rate for Defense Savings Certificate has been increased from 12.47 percent to 13.01 percent while the rate of Special Saving Certificate from 11.57 to 12.90, Regular Income Certificate from 12 percent to 12.96 percent.
Likewise, the rates of Savings Accounts have been increased from 8.5 percent to 10.25 percent while the rates of Bahbood Savings Certificates and Pensioners’ Benefit Account were increased from 14.28 percent to 14.76 percent.
He informed that the government had also increased the short-term (3 months), medium-term (6 months) and long-term (12months) certificates to attract more people towards savings and investments with CDNS.
He said that the new rates for short-term certificates have been increased from 9.8 percent to 12.08 percent, medium-term from 9.88 percent to 12.18 percent while the rate of long-term certificate has been enhanced from 9.98 percent to 12.28 percent.
“The instant revision was made in the backdrop of current market scenario and in accordance with the government’s policy to provide a market-based competitive rate of return to the investors of National Savings”, the official said.
Replying to a question, he said that CDNS had achieved a net target of Rs 410 billion by June 30 of previous FY 2018-19, as compared to last year’s collection of Rs155 billion.
The total savings held by the CDNS stood at Rs 1,150 billion by June 30, while the directorate had Rs 774 billion savings by the same date, a year ago, he said.
He said that due to the rationalization of CDNS certificates’ rates, the directorate has collected more savings than expected; therefore CDNS revised its target upward from Rs 224 to 324 billion for FY 2018-19.