Govt announces further reduction in profit rates for National Savings schemes

The federal government has announced a further reduction in the profit rates for National Savings schemes, with the new rates set to come into effect from December 11.

According to the National Savings Department, the profit rate on savings accounts has decreased from 16% to 13.5%, marking a reduction of 250 basis points. The rates on Regular Income Certificates and Defence Savings Certificates have also been lowered.

The profit rate on Regular Income Certificates has been reduced by 10 basis points, bringing it down to 12.1%. Additionally, the profit rates on Short-Term Savings Certificates have also been cut.

The National Savings Department stated that the profit rates on other schemes, such as the Savings Account, Sarwa Islamic Term, and Islamic Savings Account, have also been revised downwards.

Specifically, the profit rate on Islamic Savings Accounts has been reduced by 72 basis points, now standing at 10.44%.