{Awareness} National Savings Scheme Bumps Up Profit Rates

 

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National Savings Scheme Bumps Up Profit Rates

According to a notification issued on Wednesday, the Federal government has decided to increase profit rates on the National Saving Scheme by 20 points. The profit on the Defense Saving Scheme certificates has now escalated to 54% with an increase of 0.7%.

For the Bahbood Saving Scheme, the profit rate has been maintained at 9.36% and the rate of Special Saving Certificate has been fixed at 6%.

Soon after the implementation of this decision, any person who invests Rs. 1 Lac on Special Saving Certificate will now get a Rs. 6000 profit instead of just Rs. 5800. Moreover, the profit on regular income certificates is now 54% with an increase of 0.6%.

The majority of the retired as well as senior citizens have invested in the National Saving Schemes. For them, saving schemes are a major source of income. The rate of profit was previously significant but the government showed no signs of increasing the rates further in the recent years, thus affecting household incomes negatively.

The government did in fact introduce a slight increase in profit rates, however, that wasn't enough given the rising inflation in the country.

By increasing the profit rates, the government is also trying to encourage more people to invest in them. The new profit rates will be applicable in February.

Source: Dunya News

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