CDNS reduces interest rate due to lower PIB rates

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ISLAMABAD, Aug 27 (APP):The Central Directorate of National Savings (CDNS) has reduced the interest rate on the investment bonds due to lower rates of Pakistan Investment Board (PIB).

“The CDNS interest rates are linked with the policy of PIB, set by State Bank of Pakistan (SBP)”, said a senior official of CDNS while talking to APP on Saturday.

He said the country’s policy rates were lowest in the history and so is the interest rate of CDNS.

The CDNS is committed to facilitating the Pensioners, Senior Citizen and Widows under Pension Benefits and Behbood Funds according to which they get two percent above normal rates, he added.

He said the Central Directorate of National Savings (CDNS) has set Rs 200 billion net target for fiscal year (2016-17).

The Central Directorate of National Savings (CDNS) has achieved the revised target of Rs 218 billion for the previous year 2015-16.

He said that CDNS notified downward revision in the profit rates for various saving certificates which was applicable from August 01, 2016.

“The instant revision was made in the backdrop of current market scenario and in accordance with the government’s policy to provide market based competitive rate of return to the investors of National Savings”, he added.

He said as per notification issued by the federal government, the new rates for Defence Savings Certificate, Special Saving Certificate, Regular Income Certificate, Savings Accounts have been revised down at an average of 7.33 per cent, 6.133 percent, 6.31 per cent and 3.84 per cent respectively.

The official said the profit rate of return for specialised Savings Schemes like Bahbood Savings Certificates and Pensioners’ Benefit Account has also been revised and fixed at 9.12 per cent in order to provide safety net to specialised segments of the society.

To a question, the official said that CDNS does not accept institutional investment, but only individual investment are encouraged to deposit for saving in the National Savings.

He said that “We have received no direction from International Monetary Funds (IMF) for revision of saving rates.”