The Central Directorate of National Savings (CDNS) has once again reduced profit rates on most of its savings schemes, with some cuts reaching up to 250 basis points (bps). These new rates came into effect on December 10.
Among the largest adjustments, the Savings Account (SA) saw a significant reduction of 250 bps, lowering its rate to 13.5%. Meanwhile, the Sarwa Islamic Savings Account (SISA) and Sarwa Islamic Term Account (SITA) experienced decreases of 72 bps each, bringing their profit rates down to 10.44%.
Other savings instruments also saw reductions, including:
- Special Savings Accounts & Certificates (SSA-SSC): Reduced by 50 bps.
- Regular Income Certificates (RIC): Reduced by 12 bps.
However, some schemes maintained their previous rates. The Bahbood Savings Certificates (BSC), Pensioner Benefit Account (PBA), and Shuhada Family Welfare Account (SFWA) saw no change, remaining at 13.92%.
These rate adjustments align with the government’s strategy to reflect broader economic conditions, particularly the declining interest rates and easing inflation. The adjustments come ahead of the State Bank of Pakistan’s anticipated policy rate reduction, expected at its next meeting on December 16. Since June, the central bank has cut the policy rate from a record-high 22% to 15%, including the latest 250 bps reduction in November.
This ongoing reduction in interest rates is part of the government’s effort to stabilize the economy in response to changing market conditions.
