Islamabad: The National Savings has made new changes in the profitable rates of various savings schemes. The returns of most schemes have been reduced; however, the one-year short-term savings certificate was an exception to this decision. Its rate has been increased marginally.
Under the revised rates, the profit on Pensioners Benefit Accounts and Welfare Savings Certificates will now be 12.60 percent. The rate of both these schemes has been reduced by 36 basis points compared to the previous rate.
The returns have also decreased for investors of regular income certificates. The new rate of this scheme has been fixed at 11.16 percent, which is 36 basis points lower than the previous rate. The interest on the Special Savings Account has also been reduced by 30 basis points to 10.90 percent.
A slight decrease has also been seen in short-term savings schemes. The new rate of the three-month Short Term Savings Certificate is 10.86 percent. It has been reduced by 26 basis points. The interest on the six-month certificate has also been reduced by 28 basis points to 10.86 percent.
The situation is different for investors with a one-year tenure. The rate of the one-year Short Term Savings Certificate has been increased by 11 basis points. Thus, the new rate on this scheme has been fixed at 11.28 percent.
According to the National Savings, the new rates will be applicable immediately. The most significant impact of this change may be on the income of those who prefer national savings schemes for regular returns. The new rates are particularly important for pensioners and other fixed income investors.
National savings schemes have long been used in the country as a relatively safe form of savings. However, after the change in the rate of return, it will be important for existing and new investors to look at the tenure, expected returns and other financial factors while choosing a scheme.
Overall, the new rates show that returns have been limited in most schemes, while one-year short-term certificates have seen a slight improvement. Investors should also review the latest terms and conditions of the relevant scheme and applicable tax deductions before making a final decision.
We welcome your contributions to The Pakistan Observer, Submit your blogs, articles, press releases, news story pitches and news features.
Please send your submissions to our News Room or Editorial team.
