Islamabad August 14 2024: The rates for various savings schemes have declined by up to 390 basis points (bps) from their respective peaks, according to data shared by Central Directorate of National Saving.
This decline is primarily attributed to the decrease in the cut-off yields of Pakistan Investment Bonds (PIBs). Specifically, the cut-off yield for the 3-year PIB has dropped by 315 bps, reaching 16.25 percent in July 2024, down from its peak of 19.39 percent in May 2023. Similarly, the 5-year PIB’s cut-off yield fell by 166 bps to 15.30 percent, compared to its peak of 16.95 percent in October 2023.0
The most significant decrease occurred in the Short-Term Savings Certificates (STSC), which saw a decline of 390 bps, dropping to 17.90 percent from its peak of 21.80 percent in September 2023. The Serwa Islamic Term Account experienced the second largest decline, falling to 18.90 percent from its peak of 21.80 percent in September 2023.
Additionally, the rates for Special Savings Certificates decreased by 260 bps to 15.60 percent, down from their peak of 18.20 percent in July 2023. Both the Special Savings Account and the Serwa Islamic Saving Account saw a 150 bps decline from their peaks. The Regular Income Certificate rates dropped by 144 bps to 14.64 percent, down from a peak of 16.08 percent in October 2023.
The Defence Savings Certificates rates declined by 130 bps to 13.57 percent, having peaked at 14.87 percent in April 2023. Lastly, the rates for the Behbood Savings Certificate, Pensioners Benefits Account, and Shuhada Family Welfare Account decreased by 120 bps each from their respective peaks.
