Reduced Profit Rates for Short-Term Savings Certificates – 8171 Update
The Federal Government has released a recent update stating that the Central Directorate of National Savings (CDNs) has reduced the Profit Rates on Short Term Savings Certificates in December. This decision is a crucial step toward decreasing the poverty rate in our nation.
Short-Term Saving Certificate For December – Latest Update
The aforementioned certificates, accessible to both Pakistani citizens and those residing outside the country, allow for deposits as low as Rs 10,000 without any maximum limit. Furthermore, they can also be used as collateral. Recently, on December 16, 2024, the Central Directorate of National Savings (CDNS) lowered the profit rate for Short-Term Savings Certificates in light of decreased inflation and favorable economic signals.
مذکورہ بالا سرٹیفکیٹس، پاکستانی شہریوں اور ملک سے باہر رہنے والوں دونوں کے لیے قابل رسائی ہیں، بغیر کسی زیادہ سے زیادہ حد کے دس ہزار روپے تک کم جمع کرانے کی اجازت دیتے ہیں۔ مزید برآں، ان کو ضمانت کے طور پر بھی استعمال کیا جا سکتا ہے۔ حال ہی میں، 16 دسمبر 2024 کو، سنٹرل ڈائریکٹوریٹ آف نیشنل سیونگز نے قلیل مدتی بچت کے سرٹیفکیٹس کے لیے منافع کی شرح میں کمی کی افراط زر اور سازگار اقتصادی اشاروں کی روشنی میں کم کردی۔ پاکستانی شہری اور بیرون ملک مقیم سرمایہ کاروں کے پاس اس اقدام میں حصہ لینے اور تین، چھ یا ایک سال کے میچورٹی آپشنز میں سے انتخاب کرنے کا موقع ہے۔ سرمایہ کاری دس ہزار روپے سے شروع ہوتی ہے جس کی کوئی زیادہ سے زیادہ حد نہیں ہے۔ مزید برآں، سرمایہ کاروں کے پاس ان سرٹیفکیٹس کو بطور سیکورٹی استعمال کرنے کا اختیار بھی ہے۔
Investors, including Pakistani citizens and those residing abroad, have the opportunity to participate in this initiative and choose from three-, six-, or one-year maturity options. The investments start at Rs 10,000 with no maximum limit. Additionally, investors also have the option to use these certificates as security.
Also Read: 8171 CNIC Check Online At Web Portal
The rates for December 2024 for Short-Term Savings Certificates:
Compared to the previous rate, which yielded a profit of Rs3,580 with a 14.32 percent return, the revised rate for a three-month maturity certificate now stands at 12.76 percent, resulting in a profit of Rs3,190 when investing Rs100,000.
The profit rate for six-month maturity certificates has been decreased from 13.46 percent, resulting in a return of Rs6,730 per Rs100,000 invested, to 12.74 percent, yielding Rs6,370. However, investing in one-year maturity certificates can now generate a return of Rs12,380 with a profit rate of 12.38 percent on the same investment amount.
The Non-Filer Profit Tax Has Increased
The taxation of profits from these certificates depends on the investor’s tax status. For those included in the Active Taxpayer List (ATL), 15% of the yield is withheld as tax. On the other hand, non-filers who are not on the ATL are subject to a higher rate of 30%. These rates remain consistent regardless of the investment date or profit amount.
Important Tax Changes to Support the Economy
On December 11, the federal government announced a significant reduction in the profit rates for National Savings plans.
The government’s efforts to align financial instruments with the current economic conditions are reflected in the adjustment of profit rates. This offers investors updated incentives while strategically managing fiscal dynamics.
Profit Rate Drop from 16 Percent to 13.5 Percent
The profit rate for the savings account has decreased by 250 basis points, from 16 percent to 13.5%, in alignment with the overall interest rate adjustments across various schemes.
Moreover, the profit rates for various savings schemes have also been revised. This includes the defense savings certificates and normal income certificates, as well as the Islamic Savings Account, Sarwa Islamic Term, and Savings Account. Notably, regular income certificates now offer a rate of 12.1%, a decrease of 10 basis points. Additionally, the profit rate for the Islamic Savings Account is currently at 10.44%, down 72 basis points.
In Conclusion
The decrease in profit rates for Short-Term Savings Certificates and other National Savings schemes is part of the government’s strategic approach towards enhancing economic conditions and curbing inflation. Although these adjustments result in lower returns, they are intended to harmonize fiscal policies and offer lasting investment prospects for citizens.