The Central Directorate of National Savings (CDNS) has revised profit rates for various National Savings Schemes (NSS), with the new rates taking effect from March 20, 2025. The latest adjustments include increases in several savings instruments, while the profit rate on the Savings Account has been significantly reduced.
The current rate revision for the Sarwa Islamic Term Account (SITA) resulted in the highest increase of 70 basis points (bps), raising the rate from 9.74% to 10.44%. The Short-Term Savings Certificates (STSC) provide a 10.96% return, up 15 basis points from the previous 10.81% profitability rate.
All three accounts, Bahbood Savings Certificates (BSC), Pensioner Benefit Account (PBA), and Shuhada Family Welfare Account (SFWA), had a 10-bps rate rise resulting in profit rates of 13.68%. The Defence Savings Certificates (DSC) had a 1 basis point rise, resulting in a new profit rate of 12.15% from the previous level of 12.14%.
The Savings Account suffered the highest fall in profit rate performance, dropping 100 basis points to 10.50% after starting at 11.50%.
The State Bank of Pakistan (SBP) took this decision while maintaining its policy rate of 12%, as previously stated. Pakistan Bureau of Statistics (PBS) reported the lowest Consumer Price Index (CPI)-based inflation in 113 months, falling to 1.5% in February 2025 from 2.4% in January.
CDNS, which manages a portfolio exceeding Rs3.4 trillion and serves over 4 million customers through 376 branches nationwide, plays a critical role in financing the government’s budgetary needs. The changes in profit rates are aimed at adjusting returns in line with the country’s economic conditions and monetary policy.