The Central Directorate of National Savings has announced a decrease in return rates for several of its National Savings Schemes, effective February 25, 2025.

The adjustments range from 1 basis point (bps) to 33 bps, affecting various savings certificates and accounts, resulting in lower returns for investors.

Notable changes include a 10bps reduction in the rate for Bahbood Savings Certificates, which will now yield a return of 13.58%, down from the previous 13.68%. Moreover, the rate for Pensioners’ Benefit Accounts has also decreased by 10bps, now standing at 13.58%. Additionally, the return on Defence Saving Certificates will be 12.14%, reflecting a slight drop of 1bps from 12.15%.

The return rates for Special Savings Certificates have been reduced by 20bps, offering a yield of 11%. Meanwhile, Short Term Savings Certificates have seen a more significant decline of 33bps, bringing their return to 10.81%. The return on the Special Saving Account has also dropped by 20bps, now at 11%.

Both the Sarwa Islamic Savings Account and the Sarwa Islamic Term Account experienced a decrease of 16bps, with their new return set at 9.74%. In addition to this, the Shuhada Family Welfare Account has seen a 10 bps reduction, now offering a return of 13.58%.

The adjustment follows the State Bank of Pakistan’s decision to lower its key policy rate by 1% to 12% last month, marking the sixth consecutive rate cut since June 2024. The Monetary Policy Committee attributed the cuts to easing inflation, although it acknowledged that core inflation remains elevated.