The Central Directorate of National Savings has increased the profit rates on schemes by 1% with effect from November 1, according to sources familiar with the matter.
A notification, available with SAMAA Digital, shows the profit rate for savings account has gone up by 1% and investors will now get a return of 7% on these certificates with effect from November 1. This means that if you invest Rs100,000 in a savings account, you will get an annual return of Rs7,000 under the new rates.
The rates of short-term saving certificates have also gone up by nearly 1%. Three-month certificates will now offer a return of 8.28% while the six-month and 12-month certificates will offer a profit of 8.38% and 8.48%, respectively.
Similarly, rates for the Behbood Savings Certificates, Pensioner Benefit Accounts, and Shuhada Family Welfare Accounts have been raised to 11.88%, up by 0.96%. Defense savings schemes will offer a 10.03% return following an increase of 0.98%.
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.).