National Savings in Pakistan has announced a series of significant revisions to the profit rates across various savings products, presenting both opportunities and challenges for investors in the country. These changes reflect National Savings’ ongoing efforts to ensure that its financial offerings remain aligned with the ever-evolving landscape of the financial market.
One of the noteworthy adjustments made by National Savings is the substantial increase in the profit rate for its Savings Accounts. The profit rate has been raised by 1%, now standing at an enticing 20.5% per annum. This increase applies to accounts with withdrawal methods other than cheques and took effect on October 30, 2023.
Conversely, Special Savings Accounts (SSA) have experienced a slight decline in their profit rates. As per rule 36E, the profit rate for deposits in SSAs has decreased by 20 basis points (bps), resulting in a profit rate of 18% per annum, effective from the same date.
National Savings has also adjusted the profit rates for deposits in Pensioners’ Benefit Accounts and Shuhada’s Family Welfare Account. Both of these accounts now offer a profit rate of 16.32% per annum, which represents a decrease of 24 bps from the previous rates.
The Sarwa Islamic Term Account (SITA) rates have also undergone revisions, offering investors varying opportunities based on the duration of the account: For a three-year SITA account, the expected rate per annum has been adjusted slightly down from 18.33% to 18.23%, reflecting a decrease of 10 bps.
In contrast, the profit rates on five-year SITA accounts have been revised upward by 60 bps, reaching an appealing 15.72% per annum. These Islamic certificates present attractive investment opportunities for individuals with a longer investment horizon.
Investors considering the Sarwa Islamic Savings Account (SISA) will find a competitive profit rate of 20.50%, payable on their deposits.