Further increase in profit on Pakistan National Saving Certificates from 1st December 2008 12


DG CDNS says if old investors want to benefit from new rates, they need to deposit service charges

BY Khalid MustafaISLAMABAD: The government has increased the rates of profits on National Savings Schemes (NSS) effective from December 1, 2008.

“The decision will be applicable for new investors. However, the old investors, who want to reap the dividends of the decision of the government, are required to submit certain service charges to qualify for getting a raise in the rates of profits on National Saving schemes,” DG Central Directorate of National Savings, Zafar Sheikh, told The News.
He said that the old investors are required to submit service charges to become part of the new NSS, under which, the rates of profit have been increased. If the old investors want to be part of the new schemes, they have to submit service charges, which are to be 1 per cent (100 basis points) of the total investment in the first year, 0.75 per cent (75 basis points) in the second year, 0.5 per cent (50 basis points) in the third year and 0.25 per cent (25 basis points) in the fourth.

Under the decision, the rates of profit on special savings certificates (Registered) or accounts have been enhanced from 13.00 per cent per annum to 14.53 per cent per annum. The profit on regular income certificates has been increased from 13.30 per cent per annum to 15 per cent per annum, on Bahbood savings certificates or pensioners’ benefit accounts from 15 per cent per annum to 16.80 per cent per annum and on savings accounts from 9 per cent per annum to 10 per cent per annum. Accordingly, the prize money on all types of prize bonds has also been increased.

However, the sources in Finance Ministry said that the government is also considering increasing dollar inflows in the country by introducing a dollar dominated national savings scheme. But right now it seems impossible as the spread of the country is too high and when the credit rating of the country starts improving, only then will the government be able to introduce the dollar dominated scheme for expatriates. The government would offer expatriates a reasonable profit of more than 3 to 4 per cent, which the expatriates would receive after depositing their money in the banks of their respective countries, where they work.
 

 

  http://www.thenews.com.pk/daily_detail.asp?id=150023

Profit rate on Pakistan national saving schemes cut by 1.5% from 1-Apr-09 click for details


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12 thoughts on “Further increase in profit on Pakistan National Saving Certificates from 1st December 2008

  • ahmed

    i am 61 year old man. i would like to buy saving certificate. i would like to know how much intrest ? what would be the precentage?

  • Raheem Post author

    (Investment From Abroad)
    Q.09. I am presently out of the country and want to withdraw the profit of my investment made in NSS in Pakistan, can I do this? If yes, what are the steps?
    Ans: As per rules a purchaser can nominate an agent for collection of profit of the principal at his personal risk after issuing a power of attorney duly attested by the Pakistani missions working in that country subject to entire satisfaction of the Officer Incharge of National Savings Centre concerned.
    Q.10 What is the procedure to invest in National Savings Schemes from abroad? In which scheme(s)
    I can invest, and what documents are required?
    Ans: Investment from abroad can be made through Bank Draft/Cheque in any foreign currency in favour of any of our office(s), alongwith the application form duly filled in and the copies of Passport and National identity Card. The Bank Drafts got prepared in Pak rupee from abroad are cleared much earlier than those in foreign currency. It would be more proper if these are payable at the same city where the investment is intended to be made.
    The investment in the National Savings Schemes is maintained and expressed in Pak rupee only. Amount received in foreign currency is converted into Pak rupee on the prevailing official exchange rate through normal Banking channels for investment in National Savings Schemes. Moreover, the principal and profit accrued on a certificate issued against foreign exchange received through remittance shall be payable abroad to the purchaser in foreign exchange if so desired by the investor. For the purpose, the payable amount shall be converted into the desired currency at the official exchange rate prevailing at the time of conversion/payment.
    http://www.savings.gov.pk/FAQs_abroad.HTM

  • Saleem

    Dear Sir , This is a great Idea to introduce National Savings Schemes in Foregin Currency.This will greatly enhance the flow of capital.Care should be taken that it does not repeat the Freezing of accounts in Foregin currency as it happen previously.

  • National Savings

    Investment from abroad can be made through Bank Draft/Cheque in any foreign currency in favour of any of our office(s), alongwith the application form duly filled in and the copies of Passport and National identity Card. The Bank Drafts got prepared in Pak rupee from abroad are cleared much earlier than those in foreign currency. It would be more proper if these are payable at the same city where the investment is intended to be made.

  • Javed

    Dear Saleem, It has become our national habit to start clapping hands in praise or otherwise just listening or mere bare reading an item. What have you understood about “national saving schemes in FOREIGN EXCHANGE” that you have started praising it.

    National savings are best schemes in Pakistan but remember if you invest with the common idea that that you will get the profit as well as your principal in foreign currency when your investment period is complete, then you are a big loser and you will beat your head at the end. Invest in National Savings in Pak Rupees and keep your money in Pakistan rather than abroad – the best and safe investment.