ISLAMABAD, June 30: The federal government reduced on Monday the rate of return on all National Saving Schemes (NSSs) between 0.9 per cent to 1.53 per cent and launched a new saving scheme, specifically for the widows.
The reduction in the rate of return would, however, reduce the take-home income of the people between 8.7 per cent to 20 per cent if compared with their earnings under the existing rates.
According to the official announcement, the rate of return on the Defence Saving Certificates has been reduced from 10.03 per cent to 8.5 per cent, causing a reduction in take-home income by 15 per cent.
The return on the Pensioner’s Benefit Account has been reduced to 10.08 per cent from existing 11.04 per cent, bringing the take-home income down by 8.69 per cent. The interest on the Regular Income Certificates has been reduced to 7.68 per cent from existing rate of 9.12 per cent decreasing take-home income by 15.8 per cent.
Similarly, profit on the Special Savings Certificates (Regd)/Special Savings Accounts has dropped from 8.5 per cent to 7.67 per cent, reducing the take-home income by 9.76 per cent. The return on the Saving Accounts has been decreased from 5 per cent to 4 per cent, thereby, reducing the take-home income of investors by 20 per cent.
In overall terms, the rate of return on the Defence Savings Certificates has come down by 1.53 per cent, the Pensioners’ Benefit Account by 0.96 per cent, the Regular Income Certificates by 1.44 per cent, the Special Savings Certificates (Regd)/Special Savings Accounts by 0.83 per cent and the Savings Accounts by one per cent.
FOR WIDOWS’ BENEFIT: The government also launched an exclusive savings scheme for the benefit of widows — the Bahbood Savings Certificate. The scheme is of 10 years maturity and promises profit on monthly basis at the rate equivalent to the return on the Pensioners’ Benefit Account (PBA), i.e., 10.08% per annum.
For the convenience of widows, the deposits shall be maintained in the shape of registered certificates in the denominations ranging from Rs5,000 to Rs500,000.
There shall be no deduction of Zakat on these certificates while tax shall be deducted as per rules.
These certificates are of 10 years maturity, but can be encashed at any time after the date of purchase on payment of prescribed service charges.
Officials said the reduction in return on saving schemes had been rationalised in the context of recent decline in various interest rates in the banking and financial sector.
The certificates purchased and accounts opened prior to July 1, 2003, shall earn profit at the rates prevailing on the respective dates of purchases.
FACILITIES FOR SENIOR CITIZENS: It said the government had also decided to immediately improve facilities at the Savings Centres so that the senior citizens and other clients could feel comfortable while interacting with the National Savings Centres.
The automation process which is in process will enable the National Savings Organization to provide all other facilities currently available to the clients of the commercial banks.
The project is likely to be completed within the scheduled time.
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