National Saving Schemes : CDNS Revises Rate

presentation

1. NATIONAL SAVINGS SCHEMES: CDNS REVISES RATES Published in Business Recorder May 14, 2024 Rahid Hussain MAF-22-42

2. INTRODUCTION Central Directorate of National Savings (CDNS): Government body managing National Savings Schemes Adjusts interest rates based on economic conditions Recent Changes: Rates revised four times in the last five months

3. DECREASED RATES Special Savings Certificates (SSC) New Rate: 15.70% (decreased by 10bps) Regular Income Certificates (RIC) New Rate: 14.64% (decreased by 12bps) Bahbood Savings Certificates (BSC), Pensioners Benefit Account (PBA), Shuhada Family Welfare Account (SFWA) New Rate: 15.36% (decreased by 24bps) Defence Savings Certificate New Rate: 14.39% (decreased by 1bps)

4. INCREASED RATES Short Term Savings Certificates (STSC) New Rate: 19.24% (increased by 24bps) Sarwa Islamic Term Account (SITA) New Rate: 19.10% (increased by 56bps) Unchanged Rates Saving Account: 20.5% Sarwa Islamic Savings Account (SISA): 20.5%

5. ECONOMIC CONTEXT Monetary Policy Committee (MPC) Key policy rate unchanged at 22% Inflation Rates April 2024: 17.3% (year-on-year) March 2024: 20.7% (year-on-year)

6. CONCLUSION CDNS adjusts rates in response to economic conditions Aims to balance returns for investors with economic stability