Govt raises profit rates on savings certificates

Behbood certificates, meant for pensioners and families of martyrs, will have profit rate of 14.76%

KARACHI: The government on Thursday decided to increase profit rates on its series of savings plans, commonly known as National Savings Certificates.

Behbood Certificates, meant for pensioners and families of martyrs, after the latest announcement, would have new profit rate of 14.76%, which for many of the families would certainly be a relief against the growing inflation.

“Although my children are grown up, I can never be fully dependent on them and my savings ought to be good enough for me and my wife,” said Abdul Moin, a retired government employee, formerly associated with the Water and Works Department.

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With the hope that the raise would certainly help, the senior citizen also wanted the authorities to take urgent measures so that rising inflation could be brought under control. Fresh profit rate of 13.01% on Defence Saving Certificates also came as good news for those who had invested in the certificates with maturity period of 10 years.

Dr Tahira Hasan, who teaches economics in a private university, told APP concerted efforts were needed in the country to promote the culture of savings among the masses. “Adequate returns on savings can encourage many to deposit their money with government-based plans/schemes instead of property,” she said.

According to Dr Hasan, the latest increase in the government-owned savings plans would attract people but much more needed to be done. “This decision is definitely a step towards attracting people,” said Hasan.

Published in The Express Tribune, July 5^th, 2019.

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