ISLAMABAD: The government has increased the profit rates on various National Savings Schemes, offering higher returns to investors across a range of savings instruments. The revised rates have come into effect from June 10.
Under the new rates, the profit on Special Savings Certificates has been increased from 11.6 percent to 12.4 percent per annum during the first half of the year on an investment of Rs100,000. For the second half of the year, the profit rate has been raised from 12.4 percent to 13.6 percent.
Returns on Defence Savings Certificates have also been significantly enhanced. The profit rate for the first year has been increased from 7 percent to 10 percent, while the second-year return has risen from 15 percent to 21 percent. The third-year return has been increased from 24 percent to 34 percent, the fourth-year return from 35 percent to 49 percent, and the fifth-year return from 48 percent to 67 percent.
The annual profit rate on Regular Income Certificates has been increased from 11.82 percent to 12.24 percent. Similarly, the rate of return on Welfare Savings Certificates, Pensioners Benefit Accounts and Shuhada Family Welfare Accounts has been raised from 12 percent to 13.20 percent.
For Short-Term Savings Certificates, the new profit rates have been fixed at 11.4 percent for three months, 11.66 percent for six months and 11.77 percent for one year.
The profit rate on Savings Accounts will remain unchanged at 10 percent. However, returns on Islamic savings products have also been revised upward. The profit rate on the National Savings Islamic Savings Account has been increased by 0.9 percentage points to 11.88 percent, while the return on Shariah-compliant Special Savings Certificates has been increased by 0.54 percentage points, bringing the new rate to 12.11 percent. In addition, the profit rate on Short-Term Savings Certificates has been increased by 0.54 percentage points, resulting in a return of Rs11,770 on an investment of Rs100,000.
According to the revised policy, a withholding tax of 15 percent will be deducted from profits earned by filers, while non-filers will be subject to a 30 percent tax deduction. The revised profit rates for all National Savings Schemes have been implemented from June 10.
