close
Wednesday July 09, 2025
Today's Paper
Prayer Timing
Epaper

CDNS cuts returns on savings certificates for third time in two months

By Our Correspondent
February 22, 2024

KARACHI: The state-run savings agency has cut the interest rates on most of its products for the third time in two months, citing lower market interest rates.

An office of the National Savings can been in this undated picture. — APP/File
An office of the National Savings can been in this undated picture. — APP/File

The Central Directorate of National Savings (CDNS) said on Wednesday that it had reduced the rates of return on its Special Savings Certificates, Defence Saving Certificates, Short Term Savings Certificates, Regular Income Certificates, Bahbood Savings Certificates, Pensioners Benefit Account and Shuhada Family Welfare Account by up to 72 basis points.

The new rates range from 13.67 percent to 20.5 percent, depending on the product and the maturity period.

Rates of Special Savings Certificates have been decreased by 40bps to 15.6 percent from 16 percent. The Defence Saving Certificates (DSC) will now offer a return of 13.67 percent, compared to a 14.22 percent return, a decline of 55bps. Rates on Short Term Savings Certificates have been reduced by 58bps, and will now yield 19.76 percent compared to the earlier 20.34 percent. In addition, the return on Regular Income Certificates (RIC) has been reduced to 14.64 percent from 15 percent, a decrease of 36bps.

The rates of Bahbood Savings Certificates (BSC), Pensioners Benefit Account (PBA), and Shuhada Family Welfare Account have been reduced by 72bps, and will now offer a return of 15.36 percent, compared to the previous 16.08 percent. The rates of Saving Account, Sarwa Islamic Term Account and Sarwa Islamic Saving Account remain unchanged at 20.5 percent, 18.5 percent and 18.5 percent, respectively. The Central Direc­torate of National Savings has despatched revised rate sheets to all the regional offices with instructions to issue the existing stock of blank certificates at new rates effective from Feb 22, 2024 . The NSS rates are linked with Pakistan Investment Bonds (PIB) for medium and long-term instruments and with T-bills for short-term securities. The revision is in line with the prevailing market scenario and the interest rate policy of the central bank, which has kept its policy rate unchanged at 22 percent.