KARACHI: The Central Directorate of National Savings (CDNS) has announced to revise the rate of returns on several saving accounts downward.
Industry sources said these rates have been revised following the cut in the key policy rate by the State Bank of Pakistan last month.
Cumulatively, rate on return on three saving accounts has been declined by up to 150 bps. As per the new rates announce by the Directorate, profit on savings account has reduced by 150 bps to 19.00 percent down from 20.50 percent.
Rate of return on Short Term Savings Certificates (STSC) fell by 134 bps to 17.90 percent and new profit rate for Sarwa Islamic Savings Account (SISA) will be 19.00 percent, down by 150 bps. The rates of other saving schemes remained unchanged.
Analysts said the Monetary Policy Committee (MPS) of SBP in its last meeting held on July 29, 2024 has cut the key policy rate by 100 bps to 19.50 percent on lower inflation outlook. Overall, the committee had reduced the policy rate by 250 bps in the last two months.
Therefore, following the cut in the key policy rate, the Central Directorate of National Savings has revised the profit rate for different saving schemes to rationalize the profit in line with the policy rate.
Copyright Business Recorder, 2024
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