The Central Directorate of National Savings (CDNS) has announced a reduction in the return rates on several of its National Savings Schemes (NSS), effective from February 25, 2025.
The adjustments, which vary from 1 basis point (bps) to 33bps, will impact various savings certificates and accounts, providing lower returns to investors.
Key changes include a decrease of 10bps in the rate for Bahbood Savings Certificates, which will now offer a return of 13.58% down from 13.68%.
Similarly, the rate for Pensioners Benefit Accounts (PBA) has also dropped by 10bps, settling at 13.58%. The Defence Saving Certificates (DSC) will provide a return of 12.14%, a reduction of 1bps from 12.15%.
The Special Savings Certificates experienced a 20bps reduction, now offering a return of 11%, while Short Term Savings Certificates (STSC) saw a significant drop of 33bps, with the return now at 10.81%. The Special Saving Account’s return has also declined by 20bps, now offering a return of 11%.
The Sarwa Islamic Savings Account and Sarwa Islamic Term Account both experienced a 16bps decrease, with their return now set at 9.74%. Additionally, the Shuhada Family Welfare Account (SFWA) saw a 10bps reduction to 13.58%.
This move comes after the State Bank of Pakistan lowered its key policy rate by 1% last month to 12%, marking the sixth consecutive rate cut since June 2024. The Monetary Policy Committee cited easing inflation but noted that core inflation remains high.
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