Business

Important Update on Profit Rates for Savings Schemes

On Friday, the government stated that from November 4th, 2024, profit rates on National Savings Schemes (NSS) will be reduced.

The government has announced a 360 basis point (bps) reduction in profit rates for a number of important savings products.

New Profit Rates for November

Here are the new profit rates that will effect from November 4th, 2024.

Investment Type	Current Profit Rate	Previous Profit Rate	Change (bps)
Bahbood Savings Certificates (BSC)	13.92%	14.16%	-24
Sarwa Islamic Savings Account (SISA)	11.16%	14.25%	-309
Sarwa Islamic Term Account (SITA)	11.16%	14.25%	-309
Pensioner Benefit Account (PBA)	13.92%	14.16%	-24
Regular Income Certificates (RIC)	12.12%	12.72%	-60
Savings Account (SA)	16.00%	16.00%	0
Shuhada Family Welfare Account (SFWA)	13.92%	14.16%	-24
Special Savings Account & Certificates (SSA-SSC)	11.60%	12.10%	-50

There will be a 360 basis point drop in the rate for the Special Savings Certificate, from 15.20% to 11.60%, and a 220 basis point drop for the Special Savings Account, from 15.20% to 13%.

Furthermore, following a drop of 309 basis points, the Sarwa Islamic Savings Account and Sarwa Islamic Term Account will now provide 11.16% rather than 14.25%.

It is important to note that the financial market mostly expected these cuts because the State Bank of Pakistan (SBP) recently lowered interest rates. The interest rate has been dropped by 450 basis points to 17.5% by the central bank, and another cut could be announced on Monday, November 4, during the next monetary policy meeting.