The National Savings has announced a series of revisions in profit rates across various savings products, offering both opportunities and challenges for investors in Pakistan.
These changes come as part of the National Savings' efforts to ensure that its offerings align with the ever-evolving financial landscape.
National Savings has raised the profit rate for its Savings Accounts by a substantial 1%, bringing it to an enticing 20.5% per annum.
This increase is applicable to accounts with withdrawal methods other than cheques and became effective on October 30, 2023.
SSA experience slight decline
In contrast, the profit rate on deposits made in Special Savings Accounts (SSA), as per rule 36E, has seen a decrease of 20 basis points (bps), resulting in a profit rate of 18% per annum, effective from the same date.
National Savings has adjusted the rate of profit on deposits made in Pensioners' Benefit Accounts and Shuhada's Family Welfare Account, with both now offering 16.32% per annum. This marks a decrease of 24 bps from the previous rate.
Changes in Sarwa Islamic Term Account (SITA) rates
The Sarwa Islamic Term Account (SITA) rates have also been revised, providing investors with different opportunities based on the account duration:
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For a three-year SITA account, the expected rate per annum has been adjusted down from 18.33% to 18.23%, reflecting a decrease of 10 bps.
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On the other hand, the profit rates on five-year SITA accounts have been revised upwards by 60 bps, reaching an appealing 15.72% per annum. These Islamic certificates present attractive investment opportunities for those with a longer investment horizon.
SISA Offers 20.50% profit
Investors considering the Sarwa Islamic Savings Account (SISA) will find a profit rate of 20.50%, payable on their deposits.
These changes in profit rates by National Savings impact the choices and returns of investors across the country. Financial experts recommend staying informed about such revisions and consulting with financial advisors to make investment decisions that align with individual financial goals and risk tolerance.
