The federal government has issued a notification announcing major revisions in the profit rates of various National Savings Schemes, effective immediately.
The move comes as part of routine adjustments aligned with prevailing economic conditions, including inflation and policy rates.
According to the notification, the rate of return on Regular Income Certificates has been fixed at 11.16%, while the average return on Special Savings Accounts stands at 10.77%.
The Pensioners' Benefit Accounts and Behbood Savings Certificates — previously offering some of the highest returns — have seen a notable decrease. The return on both schemes has been slashed from 16.1% to 13.20%, which could affect thousands of retired individuals relying on these accounts for monthly income.
Short-term savings certificates have also seen a dip in returns:
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10.36% for 3 months
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10.38% for 6 months
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10.40% for 1 year
Meanwhile, the average profit rate on Defence Savings Certificates has been revised to 11.79%, offering some relief for medium- to long-term investors.
Islamic National Savings Schemes have also undergone changes:
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The rate of return on all Islamic term accounts has been revised.
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The rate for all Islamic savings accounts has been fixed at 9.75%, according to the official notification.
In addition to the new profit rates, the government has introduced a revised tax and zakat deduction policy on National Savings:
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Filers will be subjected to a 15% withholding tax, while
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Non-filers will face a steep 35% withholding tax.
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Zakat will be deducted at a standard rate of 2.5%, as per Islamic financial law.
