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.