Islamabad: The federal government has increased the rate of profit on investment in National Savings Schemes. According to a new notification from the Ministry of Finance, revised rates have been fixed on various certificates and accounts, which is likely to increase the income of savers.
Under the new rates, the annual profit on the Defence Savings Certificate has become 11.80 percent, which has been increased by 19 basis points. The rate of profit on the Behbood Savings Certificate and Pensioners Benefit Account has also been set at 12.72 percent. Both these schemes have increased by 12 basis points.
Regular Income Certificate investors will now get 11.76 percent annual return. The rate of this scheme has been increased by 60 basis points. The Special Savings Certificate has also undergone a significant revision, after which its new rate has become 11.82 percent.
The interest rate of the Sarva Islamic Term Account has also been increased for those interested in Islamic investment. The new rate for the three-year plan has been fixed at 11.57 percent while the rate for the five-year plan has been fixed at 11.70 percent. These have recorded an increase of 41 and 54 basis points, respectively.
National Savings Schemes are an important source for those who want to earn income from their savings while preserving them in a systematic manner. Pensioners and people seeking a regular income are especially interested in these schemes.
The increase in the rate of return can provide investors with an opportunity for better income; however, the actual financial benefit will depend on the investment amount, tenure and terms of the relevant scheme. Inflation and other costs must also be taken into account, as high interest rates do not necessarily guarantee an increase in real purchasing power.
New rates have been implemented under the notification issued by the Ministry of Finance. The latest terms and payment methods can be confirmed with the relevant National Savings Centre before making an investment decision.
We welcome your contributions to The Pakistan Observer. Submit your blogs, opinion pieces, press releases and news features to our editorial team.
Please send your submissions to our News Desk or Editorial team. We look forward to hearing from writers, journalists and contributors.
