National Savings revises ‘profit rates’ for savings certificates and schemes
The National Savings, widely known as Qaumi Bachat, has updated the profit rates for its popular Special Savings Certificates in November 2024, providing an attractive option for small and medium investors looking for secure returns. However, as of December 10, 2024, the government has also implemented reductions in profit rates for other National Savings Schemes, impacting various products.
The updated profit rates for Special Savings Certificates, a three-year investment plan with bi-annual profits, now stand at 11.60% for the first five six-month periods, providing Rs5,800 for every Rs100,000 invested. The rate increases to 12.60% for the sixth and final period, yielding Rs6,300 per Rs100,000.
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Investors who are Active Taxpayers (ATL) will incur a 15% withholding tax on profits, while non-filers face a 30% tax rate. The scheme, which has no maximum investment limit, remains a reliable option for generating steady, bi-annual income.
In contrast, significant reductions have been made to other National Savings Schemes, effective December 10, 2024. The most notable decrease is in Savings Accounts, where the profit rate has been slashed by 250 basis points, dropping from 16% to 13.5%.
Regular Income Certificates also saw a smaller reduction of 10 basis points, with the new rate at 12.1%. For Islamic products, including Serwa Islamic Savings Accounts and Serwa Islamic Term Accounts, profit rates were reduced by 72 basis points, now standing at 10.44%.
The increase in returns for Special Savings Certificates provides a silver lining for investors, offering a secure and flexible option with competitive returns. Meanwhile, the reduced profit rates for other schemes reflect broader economic adjustments, posing challenges for savers who rely on these financial instruments for consistent earnings.
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