ISLAMABAD: The National Savings has announced a revision in the savings account profit rate, whereby the rates have been slashed by up to 2.83%.
The Sarwa Islamic Term Accounts faced the biggest cut in the rate of return in comparison with other saving components.
For example, Sarwa Islamic Term Account (SITA) one year and Sarwa Islamic Account (SITA), three years saving component faced a cut in the rate of return to 18.54 percent, from 21.37 percent and 15.50 percent from 18 percent, respectively.
However, the SITA 5-year saving scheme experienced a minor cut, to 15 percent from earlier 15.66 percent.
Meanwhile, National Savings did not change the rate of return on savings accounts, 20.50 percent while short-term savings certificates will face a slight reduction in the rate of return, to 20.34 percent from the previous 20.83 percent.
The new rates of saving schemes will be applicable from today (January 26, 2024).
| Investment Type | Current Profit Rate | Previous Profit Rate | Change (bps) |
|---|---|---|---|
| Bahbood Savings Certificates | 16.08% | 16.08% | 0 |
| Defence Savings Certificates | 14.1% | 14.41% | -31 |
| Special Savings Certificates | 16.00% | 16.40% | -40 |
| Regular Income Certificates | 15.00% | 15.12% | -12 |
| Short Term Savings Certificates | 20.34% | 20.80% | -46 |
| Savings Account | 20.50% | 20.50% | 0 |
| Pensioner Benefit Account | 16.08% | 16.08% | 0 |
| Shuhada Family Welfare Account | 16.08% | 16.08% | 0 |
| Sarwa Islamic Savings Account (SISA) | 20.5% | 20.5% | 0 |
| Sarwa Islamic Term Account (SITA) 1 year | 18.54% | 21.37% | -283 |
| Sarwa Islamic Term Account (SITA) 3 year | 15.40% | 18.00% | -260 |
| Sarwa Islamic Term Account (SITA) 5 year | 15.00% | 15.66% | -66 |
Rates per annum
The latest profit rates for Special Savings Certificates as well as Special Savings Accounts are 16.00% for the first five profits and 16.60% for the sixth profit, according to Mettis Global.
Similarly, the rates for Short Term Savings Certificates are 20.28% for 3 months, 20.3% for 6 months, and 20.34% for 1 year.
Notably, in last year, National Savings is launching four Shariah Compliant products for the first time, on July 1, 2023. The Shariah-based schemes will offer Halal profit to investors.
Finance Minister Senator Mohammad Ishaq Dar said on Monday at the launching ceremony of Shariah Compliant saving schemes.
The Shariah-compliant saving schemes are good for those who dislike interest-based profit.
This marks the first instance where National Savings is introducing Shariah Compliant products, reflecting their commitment to transitioning the entire banking system to a usury-free, Shariah-based Islamic model.
Finance Minister Dar expressed commitment to promoting the Islamic financial system and gradually eliminating the interest-based financial system in Pakistan.
He said that during the tenure of 2013-2017, Islamic Banking experienced significant growth, capturing a 21% market share in Pakistan.
Dar vowed to continue it and announced the launch of four new Islamic saving products from July 1, 2023.
These products include 1-year, 3-year, and 5-year savings accounts, as well as a monthly savings account.
I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.
