CDNS jacks up interest rates on saving certificates to six-year highs

According to a press release issued by CDNS, rates of profit on Behbood saving certificates, Shuhada family welfare and pensioners benefit accounts were hiked by 2.40% to 14.28%

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LAHORE: The Central Directorate of National Savings (CDNS) on Tuesday increased the interest rates on saving certificates, touching a six-year high as the government bids to attract investors.

According to a press release issued by CDNS, rates of profit on Behbood saving certificates, Shuhada family welfare and pensioners benefit accounts were hiked by 2.40% to 14.28%.

For special saving certificates, profit rate increased by 2.74% to 11.57% and the rate of return on regular income certificates was increased 2.28% to 12%.

The rate of return on defence certificates were hiked by 2.44% to 12.47%, whilst the rate of return on savings accounts rose by 1.50% to 8.5%.

And profit rates for short-term saving certificates was increased by 1.52% to 9.8% on three-month tenure, 1.50% to 9.88% on six-month and 1.50 month to 9.98% on a one-year tenure.

The central bank since January last year hiked the key interest rate by 425 basis points to touch 10% by end of November last year.

Investments in government securities have been slowly falling since last three years, due to low-interest rates on government amounted saving certificates

They stood at Rs202 billion in the last financial year of 2017-18 compared to Rs207 billion in 2016-17, Rs233 billion in 2015-16, and Rs337 billion in 2014-15.

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