The Central Directorate of National Savings (CDNS) has announced a reduction in the profit rate for Short Term Savings Certificates (STSCs), effective from November 4, 2024. The adjustment follows a decrease in the inflation rate and the emergence of positive economic indicators.
Revised profit rates
The Short Term Savings Certificates, launched in 2012, cater to investors’ short-term funding needs, offering maturity periods of 3 months, 6 months, and 1 year. The programme is open to all Pakistani nationals, including Overseas Pakistanis, with a minimum investment of Rs10,000, and no upper limit on deposits.
For the three-month maturity option, the new profit rate has been set at 14.32 per cent, offering a return of Rs3,580 on an investment of Rs100,000. This marks a decrease from the previous rate of 18.52 per cent, which yielded Rs4,630.
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The six-month maturity rate has been revised to 13.46per cent, with a return of Rs6,730, down from the previous 18.22 per cent or Rs9,110. Similarly, for the one-year maturity option, the profit rate has been reduced to 12.96 per cent, resulting in a return of Rs12,960, down from 17.22 per cent, which previously offered Rs17,220.
In addition to the rate changes, CDNS has outlined the tax deductions on profits earned through STSCs. For filers listed in the Active Tax Payer List (ATL), the withholding tax rate is set at 15 per cent. Non-filers will incur a higher withholding tax rate of 30 per cent on their profits, irrespective of the investment amount or date.
