ISLAMABAD - The government has reduced profit rates on National Savings Schemes (NSS) for the investment made on or after August 27 in a response to the recent cut in discount rate by SBP..
Officials have informed that government had earlier planned to reduce the profit rates on National Savings Schemes (NSS) in October this year, however it (government) decreases the rate in a response to the cut in discount rate by State Bank of Pakistan. The central bank has reduced the discount rate by 1.5 per cent.
According to the notification issued by the government, new rates for Special Savings Certificates (R)/Account have been reduced by 1.22 per cent to 10.8 per cent. New rates for Regular Income Certificate have been decreased by 1.32 per cent to 11.04 per cent. Similarly, new rates for Defence Savings Certificates have been slashed by 1.18 per cent to 11.5 per cent. Meanwhile new rates for Savings Accounts have been reduced by 1.24 per cent to 7.40 per cent.
The profit rate of return for specialised savings schemes - Bahbood Savings Certificates and Pensioners’ Benefit Account - has also been revised and fixed at 13.5 per cent to provide safety net to specialised segment of society. Investment made before the closing hours of August 24 this year will earn at previous profit rates.
The new announced rates would be effective from August 27. Officials said that the move was in accordance with the government’s policy to provide market-based competitive rate of return to investors of National Savings.
The reduction in the discount rate made by State Bank of Pakistan has paved the way for a reduction in rates offered to savers by the National Savings Scheme (NSS). The government had introduced slight increases in NSS rates at the beginning of the current fiscal 2012-13.