Govt cuts National Savings profit rates amid falling market yields

KARACHI: The Central Directorate of National Savings (CDNS) has reduced profit rates across a range of government-backed savings instruments, with some products seeing cuts of up to 100 basis points, as market interest rates continue to ease.

According to data released by Topline Securities on Wednesday, the most significant decline was observed in the basic savings account rate, which dropped by 100 basis points to 9.5 per cent. The Special Saving Certificate rate was cut by 30 basis points to 10.9 per cent, while the Defence Savings Certificate fell by 21 basis points to 11.91 per cent.

Rates on other popular instruments, including the Regular Income Certificate and Pensioners Benefit Account, were trimmed by 18 and 24 basis points respectively. The Regular Income Certificate now yields 11.52 per cent, and the Pensioners Benefit Account 13.44 per cent. The government also reduced returns on the Behbood Savings Certificate and the Shuhada Family Welfare Account -- both reserved for senior citizens and families of martyrs -- by 24 basis points each to 13.44 per cent. Meanwhile, profit rates on Islamic products such as the Sarwa Islamic Term Account and Sarwa Islamic Saving Account were lowered by 10 basis points to 10.34 per cent.