Key Highlights :
1. The government has revised the rate of return on national saving schemes by upto 4.13%.
2. This has made the schemes more lucrative and has mobilised investment from the general public.
3. The rate of return on Special Savings Certificates (SSC) has been increased by 4.13% to 17.13%.
4. The rate of return on Savings Accounts (SA) has been increased by 1% to 18.50%.
5. The rate of return on Short Term Savings Certificates (STSC) has been increased by 3.86% to 19.82%.
6. The rate of return on Bahbood Savings Certificates (BSC) and Pensioners Benefit Account (PBA) has been increased by 2.64% to 16.56%.
7. The rate of return on Defense Saving Certificates (DSC) has been increased by 2.61% to 14.87%.
8. The rate of return on Regular Income Certificates (RIC) has been increased by 0.24% to 12.84%.
9. The rate of return on individual and institutional investors has been aggressively pulled out investments from saving schemes after the government failed to raise the rates of return in line with the significant surge in the rates on the instruments in which CDNS reinvests its investors' money.
10. However, no revision in the rates resulted in the investors "prematurely" withdrawing investment from the schemes and investing in other lucrative instruments like fixed deposits at banks.
A 4.13% increased rate of return to make saving schemes lucrative and mobilise investment from the general public
The current rate of return on savings schemes is below the rate of inflation and has not increased for over 10 years. This has resulted in many people not being able to save for their future and has lead to a decline in the amount of money that is being invested in the economy. A 4.13% increased rate of return would make saving schemes more lucrative and would encourage people to invest their money in these schemes. This would result in an increase in the amount of money that is being invested in the economy and would help to improve the overall economy.
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