Profit Rates Cut in National Savings Schemes After SBP’s Policy Rate Slash

ISLAMABAD: On Wednesday, May 21, 2025, the Directorate of National Savings announced new profit rates for several National Savings Schemes (NSS). The rates have been reduced following the State Bank of Pakistan’s (SBP) recent policy move.

The SBP had cut its policy rate by 100 basis points, bringing it down to 11%. This was done to reduce the cost of borrowing and boost economic activity.

As a result, the National Savings profit rates have also been revised downward. Here’s a full breakdown:

Biggest Cut in Savings Account

• The Savings Account (SA) saw the biggest drop. Its rate was reduced by 100 basis points, going from 10.5% to 9.5%.

Updated Profit Rates for Other Schemes

• Special Savings Certificates (SSC) and Special Savings Accounts (SSA) were reduced by 30 basis points. The new rate is now 10.90%.

• Regular Income Certificates (RIC) were cut by 18 basis points, taking the new rate to 11.52%.

• Defence Savings Certificates (DSC) now offer 11.91%, down by 21 basis points.

• Bahbood Savings Certificates (BSC), Pensioner Benefit Accounts (PBA), and Shuhada Family Welfare Accounts (SFWA) were reduced by 24 basis points. They now offer 13.44%.

• Sarwa Islamic Term Account (SITA) also saw a small reduction, from 10.44% to 10.34%.

Economic Background

This update comes after Pakistan’s central bank lowered interest rates to make loans cheaper for businesses and individuals. It is part of a broader effort to stimulate economic growth in the country.

This change might affect small investors and pensioners who rely on profit income from savings. However, it may help the economy by encouraging more people to invest in businesses or the stock market.