Govt raises profit rates on National Savings Schemes from June 10

The government has increased profit rates on several National Savings schemes, offering higher returns to investors under a revised structure that will take effect from June 10, 2026, according to an official notification issued on Tuesday.

The revised rates apply to several popular savings instruments, including Special Savings Certificates, Defence Savings Certificates, Regular Income Certificates, and welfare-oriented schemes for pensioners, widows, and families of martyrs.

Under the new structure, the annual profit rate on Special Savings Certificates has been increased from 12.4% to 13.6%.

For an investment of Rs100,000, investors will receive a profit of Rs6,200 for the first six months and Rs6,800 for the second half of the year.

The notification also reiterated the tax treatment of profits earned on savings schemes.

Profit income will be subject to a 15% withholding tax for tax filers and 30% for non-filers, reflecting the government's policy of encouraging tax compliance.

For Defence Savings Certificates, the profit rate will start at 10% in the first year and gradually increase over the investment period.

According to the notification, cumulative returns could reach up to 67% by the fifth year, making the scheme attractive for long-term investors.

The government has also revised returns on other major savings products.

The annual profit rate on Regular Income Certificates has been increased to 12.24%, while Behbood Savings Certificates, Pensioners’ Benefit Accounts, and Shuhada Family Welfare Accounts will offer a fixed annual return of 13.20%.

Short-term investment instruments have also seen upward revisions. The profit rate on three-month certificates has been set at 11.4%, while six-month and one-year certificates will offer 11.66% and 11.77%, respectively.

Meanwhile, the profit rate on ordinary savings accounts has been maintained at 10%.

The notification further stated that profit rates on Islamic term and savings accounts have also been increased, although the revised rates were not disclosed in detail.

The latest revision is expected to provide better returns to savers and investors amid changing market conditions and evolving monetary policy trends.