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National savings slashed profit rates for the third time this year

SAMAA | - Posted: Jun 2, 2020 | Last Updated: 1 month ago
SAMAA |
Posted: Jun 2, 2020 | Last Updated: 1 month ago
National savings slashed profit rates for the third time this year

A section of a Behbood savings certificate.

The government has slashed profit rates for its national savings schemes for the third time this year, bringing the profit rates for savings account down by 200 basis points to 6.5%/

The profit rates peaked last year to above 12%, but this year National Savings, the largest investment and financial institution in Pakistan, started slashing profit rates for savings schemes that come under its umbrella. It reduced rates in January and April. The new rates announced on June 2 come as a third cut of the year.

Under the new rates, if you put Rs100,000 in a Savings Account, you will make a profit of Rs6,500 per year. Pensioners Benefits Account and Behbood Savings certificates to offer 9.84% annual profit.

The State Bank of Pakistan has also cut its monetary policy rate by 5.25% in the last three months, bringing the benchmark interest rates down to 8%.

After today’s rate cuts, the profit offered by various schemes under the National Savings umbrella is expected to go down by 0.5% to 0.9%. This is the range of the cut, not the actual rate after the cut. Profit rates for all the schemes can be found on the National Savings website.

With more than seven million investors, National Savings is the largest investment and financial institution in Pakistan with over Rs3.4 trillion in its kitty. People can invest in its products through its 376 branches across Pakistan.

It is a department attached to the finance ministry that promotes a culture of savings by mobilizing national savings. The channel was first used during the World Wars I and II by the British Government to raise funds for war-related expenses.

Besides promoting financial savings in the economy, it generates funds for the government to finance a budgetary deficit (loss) and infrastructure (schools, hospitals, roads, bridges and dams etc.).

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8 Comments

  1. Abid Hussain  June 2, 2020 8:07 pm/ Reply

    This government should also cut down air of poor public. They will get loans from IMF and other governments on heavy interest but will not let benefited the widows, pensioners and poor people.
    Business have already been closed due to their policies and inefficiency . GDP has declined from 5.00 to negative but even then they claim the golden age in the history of Pakistan.

  2. Tariq hanif Agha  June 2, 2020 8:09 pm/ Reply

    Sir, the rates have been slashed to a very low level. If this trend of reducing profit continues for an other 6 months or a year, the pensioners and retired people will withdraw their amounts from here. Because now the banks are paying almost. 12% or a bit more rate of profit. Rates should not reduced further, because pensioners and retired people will be forced to withdraw their amounts from here. Such huge withdrawal would be made and it would be difficult to arrange so much cash. Sosir, have mercy on pensioners and retired people. I think banks are paying 11 percent. Reduce the rates from here and increase 4% in Nsc.
    Sir, these are my humble suggestions and request.

  3. A Pakistani  June 2, 2020 8:36 pm/ Reply

    I don’t why this PTI GOVT is squeezing the throats of senior citizens by constantly reducing the rates of PENSIONERS BENIFIT ACCOUNT AND BEHBOOD SAVINGS ACCOUNT. I M KHAN, FOR GOD’S sake please reinstate the 12% rates which were existing previously.

  4. Shahid Hameed  June 3, 2020 12:03 am/ Reply

    Govt servants and Corporation employees after retirement at the age of 60 are entitled to pension. In addition they can invest additional 5 million each in Behbud and Pensioners Benefit schemes. In comparison private sector retired individual or ordinary citizen over sixty (senior citizens) can only invest up to PKR 5 million in Behbud Scheme. This is unfair considering that they pay more taxes during service and are not entitled to medical services or pension etc . In order to give incentive to non pensioner senior citizen the limit in Behbud Scheme should be increased to PKR 10.5 million. The net incentive in comparison to Special Certificate would be less than 2% ..

  5. Ashfaq Kassim  June 3, 2020 12:32 am/ Reply

    The Banks and Mutual Funds are also reducing their profit rates for Saving Account Holders and on Investments. It will be the difficult times for the Retired Persons/Pensioners, Widows, who depends on that monthly regular income, as inflation rate is not reducing, the commodity prices are going high day by day, which are not controlable by the Govt, inspite of reducing the Petrol & Diesel prices, but vice versa, Govt is increasing the Power Prices(Electricity Rate), to cover the remedy given to common people on Oil Prices.

  6. Anonymous  June 3, 2020 5:20 pm/ Reply

    This is bad. PTI should be shameful for doing such acts. Not doubtful to say, they are also filling up their own pockets like other governments. Well, they should not blame other parties for corruption then, since they’re also a part of it. Since PTI came all the basic need things are getting expensive, its getting hard and hard for pensioners and retirees to go through every month, they’re even getting taxes from them. They should learn something from the countries who they follow, how they pay their senior citizens and how respectful they’re for them!!

  7. Pakistani  June 3, 2020 5:31 pm/ Reply

    This is very disappointing that government is reducing NSC rates for seniors and pensioners, we belong to that segment of society that needs special help from rulers, but NSC is cutting profit rates for BSC, PBA and SFWA. Their rates should be 12 % to 14%, cost of living is going up and old people, widows invest their life time savings to earn decent monthly income , very sad that current rulers don’t care about elderly and widows. They should immediately revise rates and pay the rates offered in Oct 2019 by NSC.

  8. Saleem  June 28, 2020 9:20 pm/ Reply

    ye ghareeb logon ko zinda nahi rehne denge , sach tou ye hai…….

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