National Savings Increases Profit Rates on Various Certificates

In order to attract investor’s interest in the National Saving Schemes, the Central Directorate of National Savings (CDNS) marginally increased the profit rates on the savings certificate investments second month in a row.

The new rates are effective from August 4, according to a CDNS statement. The rate of profit on defense savings increased by 34 basis points to 8.44% from 8.1%.

Similarly, the rates on pensioner benefit account, Behbood savings certificates, and Shuhada family welfare account were up 36 basis points to 10.32% from 9.96%.

The profit rate on regular income certificate was raised by 12 basis points to 7.80%.

However, the profit rate on special savings certificates was reduced 20 basis points to 6.87% from 7.05%. The profit rate of saving accounts remained unchanged at 5.50%.

The investors are losing interest in the schemes owing to a lower central bank policy rate. The profit rates of bearer certificates had been increased, while profit rates of registered saving certificates are reduced.

It is pertinent to mention that the government had restricted institutional investments in national savings schemes (NSS). This will help them redirect their investments in other parts of the financial sector

Govt. (Finance Division) had issued a notice in this regard in which it said that institutional investors can no longer invest in the National Saving Scheme (NSS) on the recommendation of State Bank of Pak. w.e.f. 1st July 2020.

In the past, CDNS kept reducing rates of returns on saving certificates due to the declining secondary market yields on long-term Pakistan Investment Bonds and treasury-bills. The new policy rate is scheduled in September, a long gap after the last announcement in June, as opposed to the previous trend of back-to-back announcements in four months.


  • Govt should review deductions rate of withholding tax on regular income certificate which is 15% if profits more than Rs.5 lacs especially for retired persons as they are unable to offset this against final tax return this is more than collected from regular taxable income payers it should be reduced to this level as 15% is a heavy burden on a retired pensioner .Most of withholding taxes collected from pensioners can not be offset in final submission this needs urgent review.

    • 15% tax is not a withholding tax instead its a final regime tax and no person can adjust or offset it in his/her tax returns. So your objection is useless.

  • Is there a formal notification for this? Rates are not updated on National Savings website yet! Still not sure!


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