Govt slashes savings schemes rates

The government has reduced returns on savings accounts by up to 3.6 percent. Profit rates for National Savings Schemes (NSS) have been revised across all categories, with only slight reductions for pensioners, Shuhada and Bahbood scheme for widows.

The biggest cut affects Special Savings Certificates (SSC), where returns have dropped to 11.60 per cent from 15.20pc - a 360 basis point decline.

Special Savings Accounts (SSA) were also hit, with returns down by 220 basis points, now offering 13pc instead of 15.20pc. Regular Income Certificates (RIC) saw a smaller cut of 60 basis points, bringing returns to 12.12pc.

Islamic accounts were also impacted, with profits on the Sarwa Islamic Savings Account (SISA) and Sarwa Islamic Term Account each reduced by 309 basis points to 11.16pc from 14.25pc.

Meanwhile, returns on welfare-focused accounts, such as the Shuhadas Family Welfare Account, Pensioners' Benefit Account and Bahbood Savings Certificates, saw minor reductions of 24 basis points each, now offering 13.92pc.