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The Central Directorate of National Savings (CDNS) has officially reduced profit rates on the majority of its National Savings Schemes (NSS). These changes took effect yesterday, January 23, 2026.
According to data compiled by Arif Habib Limited, this revision aligns with current market expectations. Specifically, analysts anticipated a decline in key interest rates due to improving macroeconomic indicators and moderating inflation.
Major Cuts Across Schemes
The most significant reduction impacted the Short-Term Savings Certificates (STSC). The CDNS cut the return on this scheme by a massive 110 basis points (bps), bringing it down to 9.58%.
Similarly, other popular schemes saw notable declines. The Defence Savings Certificate rate dropped by 64bps, settling at 10.44%. Furthermore, the Regular Income Certificate saw a reduction of 60bps, lowering the rate to 9.96%.
Welfare-focused accounts also faced cuts. The Pensioners’ Benefit Account, Behbood Savings Certificate, and Shuhada Family Welfare Account were all reduced by 48bps. These schemes now offer a return of 12%.
Interestingly, not every scheme faced a cut. The Special Savings Account defied the trend. It recorded a notable increase of 20bps. Consequently, the rate for this account has risen to 10.40%, making it one of the few instruments to offer higher returns following this revision.
Updated National Savings Profit Rates (2026)
| Scheme | New Rate | Previous Rate | Change (bps) |
| Short-Term Savings Certificates | 9.58% | 10.68% | -110 |
| Defence Savings Certificates | 10.44% | 11.08% | -64 |
| Regular Income Certificate | 9.96% | 10.56% | -60 |
| Behbood Savings Certificate | 12.00% | 12.48% | -48 |
| Pensioners Benefit Account | 12.00% | 12.48% | -48 |
| Shuhada Family Welfare Acct. | 12.00% | 12.48% | -48 |
| Special Savings Certificates | 10.20% | 10.60% | -40 |
| Special Savings Account | 10.40% | 10.20% | +20 |
(Source: National Savings, AHL Research, w.e.f 23-Jan-2026)
Economic Context & CDNS Role
This widespread reduction follows the State Bank of Pakistan’s (SBP) recent monetary policy decision. Last month, contrary to some expectations, the Monetary Policy Committee (MPC) reduced the policy rate by 50bps to 10.5%.
The National Savings Organisation remains Pakistan’s largest financial institution. Currently, it manages a massive portfolio exceeding Rs. 3.4 trillion. It serves over 4 million customers through a network of 376 branches and 12 Regional Directorates. The CDNS plays a vital role in helping the government finance budgetary deficits and support critical infrastructure projects.
