CDNS reaches net target of Rs 450 billion free deposits

ISLAMABAD: The savings of the Central Directorate of National Savings (CDNS) has reached to the free deposit of Rs 450 billion in last 7th months starting from July 1 to February, 01 in the current Fiscal Year (FY) 2020-21.

The Central Directorate of National Savings (CDNS) had compensated an amount of Rs 450 billion to its investors after the termination of major prize bonds of Rs 40,000 and recent cancellation of prize bonds of Rs 25000, senior official of CDNS told APP here on Wednesday.

He said that the federal government had recently suspended the prize bonds of Rs25,000 and had given a six-month deadline to investors to en-cash their savings of Rs188 billion.

The government has already canceled prize bonds of Rs 40,000 and CDNS repaid to the investors the en-cashment worth Rs 158 billion in previous FY 2019-20, he said.

The CDNS has set Rs 249 billion annual collection target for the year 2020-21 as compared to Rs 352 billion for the previous year’s 2019-20 to enhance savings and promote saving culture in the country.

The CDNS had set Rs 352 billion annual collection target for the year 2019-20 as compared to Rs 350 billion for the previous year’s 2018-19, he said.

The directorate had also revised and increased the gross target of Rs1570 billion for the fiscal year 2019-20, he said.

Replying to a question on current revision of CDNS certificate profit rates applicable from October 14, 2020, he said CDNS had maintained the same interest rate on the savings certificates investment due to the market situation and Pakistan Investment Bonds (PIB) policy decision.

He informed that the CDNS interest rates were linked with the policy of PIB, set by State Bank of Pakistan (SBP).

He said the rate of profit on Defense Saving, regular income saving, special saving and short-term certificates remained the same.

The senior official said that the profit rate on special saving certificates had remained the same at 7.77 percent.

He informed that on Defense Saving Certificates, the rate is also the same at 8.49 percent.

The profit rate on regular income saving certificates remained the same at 8.04 percent and on Pension and Shuhada Welfare certificates the rate of profit has been retained.

The rate of profit on Short Term certificates also has been the same.

The three-month certificates now carry a profit rate of 6.66 percent, on six-month certificates rates same at 6.80 percent and on nine-month certificates the rate retained the same at 6.8 from 6.2.

Replying to a question, he said CDNS did not accept institutional investment, but only individual investment was encouraged to deposit for saving in the National Savings.