Banks’ Deposit Rate Surges to All-Time High

The minimum deposit rate (MDR) or profit rate offered to customers by different commercial banks surged to an all-time high level of 18.5 percent subsequently after the recent upward revision of the policy rate by the State Bank of Pakistan (SBP).

The revised deposit rate is effective from the next day the monetary policy was announced. Banks will apply this rate from 1st April on the deposits of March 2023.

The increasing profit rate offered by banks on saving accounts and term finance certificates also attracts huge deposits from customers and investors who would receive up to Rs. 18,500 on an investment of Rs. 100,000 excluding various taxes and duties.

The deposit profit rates offered by conventional banks are higher than those provided by Islamic banks.

The overall deposits of the banking industry continued to surge due to MDR which generate higher profit rates for the customers. The overall deposits of the banking industry increased to around Rs. 22.75 trillion—the highest ever level. Besides saving accounts and investment certificates, multiple saving and investment products offered by different financial institutions also went up including mutual funds and National Savings.

These institutions also charge services and deduct the government’s tax on the overall gain depending upon the holding period of the customers and investors.

Pakistan’s savings-to-GDP ratio is lower than that of other countries in the region, hovering at nearly 10 percent. High rates of savings from individuals and institutions can benefit the economy in specific ways. However, this requires banks to offer lucrative profit rates to customers.

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  • To date not a single bank declared 18.5 percent return i checked today. Especially national savings. Don’t know about coming month.

    • Bank al habib is giving 19 % for fixed deposit of 1 year.and you can monthly withdraw your profit.

    • Kindly check TDR rates of NBP is offering highest ever profit rate 34.50% per annum.
      TDR for the investment of 10 years instead of monthly profit.

  • I checked 3 big private banks through thier branches no one have this information yet.

    Is this 18.5% will reduced spending and control the infilation?

  • Investment in gold coins bar or piece give you high return. On 1 lac 18500 after 12 months is not worth it. It should be 50000 return.

  • Which bank gives 18500 on 100000? You just post anything without proper verification.

    • monetary policy is just announced raising interest rates to 20% p.a so eventually banks will raise deposit rates to 18.5% at-least
      currently banks are offering 15.5-16%

  • 18500 on 100k after one year and after taxes how much it will be ? 1300 after one month.
    Not a good return.
    Specially if you are deposited 50 lac the return hardly will be 50k each month.
    They need to make it more attractive offers than that.

  • national saving behbood certificate still offering old profit rates which are very low as compared to saving accounts of banks they should offer better rates than banks

  • When will all commercial banks in Pakistan will offer 18.5% returns to customers as per SBP bench mark

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