The Central Directorate of National Savings (CDNS) has announced revised profit rates for short-term savings certificates, effective February 2025.

The decision comes in response to a decline in inflation, prompting adjustments in returns offered to investors.

Under the new rates, the three-month savings certificate will now yield 11.24 per cent, providing a return of Rs2,810 on an investment of Rs100,000. Previously, the rate stood at 12.76 per cent.

The six-month certificate has been adjusted to 11.32 per cent, bringing the return on Rs100,000 down to Rs5,660 from the earlier Rs6,370, which was based on a 12.74 per cent rate.

Similarly, the one-year certificate will now offer 11.38 per cent, meaning an investor will earn Rs11,380 on the same amount.

The CDNS clarified that taxation on profits would depend on an investor’s tax status. Those listed on the Active Taxpayer List will face a 15 per cent withholding tax, while non-filers will be subjected to a 30 per cent tax.

The revised rates will apply uniformly, regardless of when the investment was made or the amount of profit earned.

Short-term savings certificates were introduced in 2012 to provide investors with quick financial returns over three-, six-, and twelve-month periods.

These certificates are available to both Pakistani residents and overseas Pakistanis, with a minimum investment requirement of Rs10,000.

There is no upper limit on investment, and the certificates can also be used as collateral for loans.

The latest revision follows the government’s September 2024 decision to cut profit rates by up to 1.22 per cent across various national savings schemes.