Increase in Profit Rates for National Savings Schemes Announced

ISLAMABAD: The government, effective from October 30, has declared modifications in the profit rates for national savings schemes, including Islamic financial products and accounts.

According to an official notification from the Ministry of Finance, the profit rate for savings accounts has been raised by 1% to 20.5% per annum. Similarly, the profit rate for special savings accounts has been increased by 20 basis points to 18%.

Conversely, the profit rate for deposits in Pensioners’ Benefit Accounts, Bahbood, and Shuhada’s Family Welfare Account has been decreased to 16.32% per annum, down from the previous 16.56%.

The return on one-year short-term certificates has been adjusted to 21.72% from 19.82%.

No alterations have been made to the one-year Sarwa Islamic Term Accounts (SITA), which remains available to investors at 20.80%. However, the expected rate of return for a three-year SITA has been increased to 18.23% as of October 30, up from the previous 18%. Likewise, the expected return for five-year SITA has been revised to 15.72% from 12.84%, reflecting an increase of nearly 3%.

The Sarwa Islamic Saving Account (SISA), a current account, now offers a return of 20.50%, up from the previous 19.50%. These financial products are paperless, and the profits will be credited to the account holders' bank accounts or national savings accounts through Raast accounts, as applicable.

The Central Directorate of National Savings has dispatched updated rate sheets to all regional offices with instructions to issue new certificates at the revised rates starting October 30.

Published in Dawn, November 2nd, 2023.

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