
The National Savings Profit Rates, which serve as a barometer capturing the essence of economic shifts and influencing strategic financial decisions of Pakistan, have showcased a mix of rises and falls across various savings certificates and accounts.
National Savings, a state-owned savings bank and the largest investment and financial institution in Pakistan, has released the updated National Savings Profit Rates, exhibiting a mix of rises and falls across various savings certificates and accounts.
Decline in long-term savings
The Defense Saving Certificates (DSC) maintained stability with a current rate of 14.5%, identical to the previous rate. However, Bahbood Savings Certificates (BSC) and Pensioners Benefit Account (PBA) both experienced a slight decrease of 24 basis points, now resting at 16.1%.
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A notable decline is observed in Regular Income Certificates (RIC) and Special Savings Certificates (SSC), plummeting by 96 and 160 basis points respectively. RIC now stands at 15.1% while SSC has dropped to 16.4%, according to Arif Habib Limited.
Significant reduction in Short-Term Savings
In contrast, the Short-Term Savings Certificates (STSC) saw a significant reduction of 100 basis points, bringing the current rate down to 20.8% from the previous 21.8%. The standard savings account remains unaffected with a steady rate of 20.5%.
Implications for investors and account holders
These fluctuations are integral for prospective investors and current account holders to consider for optimizing their financial planning strategies.
The National Savings Profit Rates are revised every quarter by the Ministry of Finance, based on the prevailing market conditions and inflation rates. The rates have been annualised with effect from December 19, 2023.