ISLAMABAD, December 15 (INP-WealthPK) The Central Directorate of National Savings (CDNS) uplift profit rates on all national savings schemes increased by up to two percent, which would be applicable to deposits and investments made on December 10. The return on savings accounts and bonds are directly in line with the central bank’s policy rates, as the central bank had increased its discount rate by 1.5pc to 8.75pc in November and 0.25pc in September; therefore, the saving rates are kept slightly higher to ensure better returns to small savers. According to the notifications, the CDNS, working under the Ministry of Finance, increased the profit rate of Defence Savings Certificate (DSC) to 10.98pc from 9.37pc, showing an increase of 161 basis points (bps). It stood at 9.29pc in May this year. Likewise, the returns on Behbood Savings Certifi­cates, Pensioners’ Benefit Account and Shuhada Family Welfare Account were jacked up to 12.96pc from 11.04pc, up 192bps. The return on Regular Income Certificates was increased to 10.80pc of total investment compared to the existing rate of 8.78pc, up 204pbs. The profit margins on Special Saving Certificates and Special Saving Accounts were also raised to 10.60pc from 8.20pc at present, showing an increase of 161bps. Also, the return on savings account has been increased to 7.25pc from 5.5pc at present, up 175pbs. CDNS spokesperson informed WealthPk that the profit rates were revised owing to 150 basis point increase (from 7.25 pc to 8.5pc) in benchmark interest rates announced by the SBP on Nov 19. The rates of national savings schemes are announced every two months and are linked to cut-off yield of the long-term Pakistan Investment Bonds. As of the last auction a few days ago, the return on PIBs ranged between 9.4pc on three-year paper going up to 12.4pc on 30-year bond. An official said the rates had been revised upwards due to the rising secondary market yields on long-term PIBs and Treasury bills in line with the increasing policy rate of the SBP. The Government of Pakistan launched Short Term Savings Certificates (STSCs) scheme on July 1, 2012. The scheme has been specifically designed to meet the short-term financial requirements of the depositors. The time period of the scheme with respect to maturity is 3-month, 6-month and 1-year. The available denominations are Rs10,000, Rs50,000, Rs100,000, Rs500,000, Rs1,000,000, Rs5,000,000, and Rs10,000,000. STSCs can be purchased from any National Savings Centre (NSC) by filling the SC-1 (Application form), which is available for free from all NSCs and is also available on the website. STSCs shall be encashed at the office of the issue but not earlier than one month from the date of issuance. However, profit shall be due on completion of the maturity period. PROFIT RATES - SHORT TERM SAVINGS CERTIFICATES (STSC) Rates remained applicable on Short Term Savings Certificates (STSCs) from 10 December, 2021 to onwards