Rs 40,000 prize bonds worth Rs 210 billion withdrawn by Oct 31

• CDNS says investors of Rs 40,000 prize bonds have withdrawn Rs 210 billion by October 31.
• SBP has directed national prize bonds worth Rs 40, 000 denominations should not be sold after June 24.

ISLAMABAD: Central Directorate of National Savings (CDNS) Monday said that the investors of Rs 40,000 prize bonds have withdrawn Rs 210 billion by October 31, out of overall reserve of Rs 259 billion investments in CDNS in these prize bonds.

After the decision taken by the Federal government, CDNS had discontinued the specific bond by June 24, 2019, senior official of CDNS told APP here.

The State Bank of Pakistan (SBP) had directed that national prize bonds worth Rs 40, 000 denominations should not be sold after June 24, and would not be encashed or redeemed after March 31, 2020.

The bond holders had been given the option of either replacing them with Special Savings Certificates (SSC) or Defence Saving Certificates (DSC), premium prize bonds through State Bank of Pakistan (SBP) field offices or National Bank of Pakistan, United Bank, Habib Bank, Bank Alfalah Ltd, and Allied Bank or encash them at the face value.

The National Savings is expecting that total amount to be drawn by the investors, would be around to Rs 230 billion by end of November, out of which Rs 50 billion were drawn in September and Rs 112 billion in August, he informed.

Replying to a question, he said CDNS had decided not to change the rates of different certificates for November, 2019 to promote the culture of savings in the country.

The CDNS has already increased rates on various savings certificates aimed at persuading the customers to invest with CDNS.

"In previous board meeting, the CDNS notified the upward revision in the profit rates for various saving certificates with effect from September, 1 (2019), encouraging people to invest in various schemes of the Directorate," he said.

The official was of the view that the upward revision of these certificates would generate more revenues that could be utilized as budgetary support by the government to overcome budget deficit problems.

He informed that the new rate for Defense Savings Certificate has been increased from 12.47 percent to 13.01 percent while the rate of Special Saving Certificate from 11.57 to 12.90, Regular Income Certificate from 12 percent to 12.96 percent.

Likewise, the rates of Savings Accounts have been increased from 8.5 percent to 10.25 percent while the rates of Bahbood Savings Certificates and Pensioners' Benefit Account were increased from 14.28 percent to 14.76 percent.

He informed that the government had also increased the short-term (3 months), medium-term (6 months) and long-term (12months) certificates to attract more people towards savings and investments with CDNS.

The official said the new rates for short-term certificates have been increased from 9.8 percent to 12.08 percent, medium-term from 9.88percent to 12.18 percent while the rate of long-term certificate has been enhanced from 9.98 percent to 12.28 percent.