Overview
- The changes took effect on September 17, setting Defence Savings Certificates at 11.42%, Short-Term Savings Certificates at 10.42%, and Sarwa Islamic saving and term accounts at 9.92%.
- The Defence rate fell 12 basis points, while Short-Term rose 6 bps and the two Sarwa Islamic rates rose 42 bps each.
- Analysts link the move to the MPC's decision to hold the policy rate at 11% given recent flood-related risks to the near-term outlook.
- The National Savings Organisation manages over Rs3.4 trillion for more than 4 million customers through a network of 376 branches.
- Profits remain subject to Zakat and withholding tax of 15% for filers and 35% for non-filers, which changes investors' net returns.