ISLAMABAD: The Central Directorate of National Savings (CDNS) has adjusted profit rates for multiple savings schemes after the State Bank of Pakistan reduced interest rates.
According to a notification issued by CDNS, the profit rates on Short Term Savings Certificates (STSCs) have been revised for January 2025.
As per the notification here are the new rates :
Three-month certificate: 12.76% (Rs2,810 return on Rs100,000 investment, down from Rs3,190).
Six-month certificate: 12.74% (Rs5,660 return on Rs100,000, down from Rs6,370).
One-year certificate: 12.38% (Rs11,380 return on Rs100,000, down from Rs12,380).
The government introduced STSCs in 2012 to provide short-term investment options. These certificates, available to both Pakistani residents and overseas Pakistanis, have a minimum investment limit of Rs10,000 with no upper limit. Investors can also use them as security.
Apart from short-term certificates, CDNS has also reduced profit rates for other savings schemes:
Savings accounts: Reduced from 13.5% to 11.5% per year.
Regular Income Certificates: Reduced from 12% to 11.88%.
Behbood Savings Certificates, Pensioners’ Certificates, and Shaheed Families Welfare Accounts: Reduced from 13.92% to 13.68%.
However, profit rates for Special Savings Certificates, Special Savings Accounts, Serva Islamic Term Accounts, and Serva Islamic Savings Accounts remain unchanged.
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Taxation on profits remains the same. Investors listed on the Active Taxpayer List (ATL) will pay 15% withholding tax, while non-filers will be taxed at 30%.
The adjustments in profit rates reflect the government’s policy to align financial instruments with the country’s economic conditions and interest rate trends.