Effective June 27, 2025, the federal government has reduced the profit rates on all National Savings Schemes by up to 100 basis points (1%).
According to the Central Directorate of National Savings (CDNS), this change affects several key savings instruments, including:
- Bahbood Savings Certificates (BSC)
- Pensioners’ Benefit Account (PBA)
- Defence Savings Certificates
- Special Savings Certificates (SSC)
- Savings Accounts
- Shuhada Family Welfare Accounts (SFWA)
Islamic savings products are also impacted, with revised rates for:
- Sarwa Islamic Savings Account (SISA)
- Sarwa Islamic Term Account (SITA)
Revised Profit Rates
- Bahbood Savings Certificates & Pensioners’ Benefit Account: Reduced from 13.44% to 13.20%
- Shuhada Family Welfare Account (SFWA): Reduced from 13.44% to 13.20%
- Savings Account: Reduced from 10.50% to 9.50%
- Special Savings Certificates: Reduced from 10.9% to 10.6%
- Sarwa Islamic Savings & Term Accounts: Reduced from 10.34% to 9.75%
These adjustments reflect the government’s ongoing review of profit rates in line with market trends and fiscal policy.
Our Opinion
A modest rate cut on National Savings Schemes tracks the broader trend in benchmark rates, but pensioners and retirees who rely on these instruments for predictable income feel a 50-100 basis point cut more directly than most savers do, since they typically have fewer alternative options. Framing this purely as a technical alignment with market trends risks understating that trade-off for the people most dependent on these schemes.
