In a move that will directly impact millions of savers across the country, the federal government has announced a reduction in profit rates on several National Savings Schemes.

According to a notification issued by the Ministry of Finance, the revised rates will come into effect on July 28, 2025, and apply to a wide range of saving instruments.

The new rates affect Special Savings Certificates, Defence Savings Certificates, Regular Income Certificates, Bahbood Savings Certificates, Pensioners' Benefit Accounts, and Shuhada Family Welfare Accounts.

As per the latest update, the annual profit on Special Savings Certificates has been trimmed from 10.6% to 10.4%. Similarly, Bahbood, Pensioners, and Shuhada Family Welfare Accounts will now offer 12.96% instead of the previous 13.20%.

The Defence Savings Certificates, which offer returns over a nine-year period, have seen a reduction from 162% to 161%. For the tenth year, the return has been adjusted from 204% to 200%. Regular Income Certificates and Short-Term Savings Certificates have also faced similar cuts, though the exact figures weren’t disclosed.

However, there's a silver lining — the profit rate on Savings Accounts remains unchanged at 9.50%, giving a bit of relief to small account holders who rely on these for short-term gains.

In contrast to the widespread reductions, Islamic Savings Schemes have received a boost. Profit rates on Sarwa Islamic Term Accounts and Islamic Savings Accounts have been increased, signaling the government’s intent to promote Shariah-compliant saving instruments.