The Central Directorate of National Savings is a Pakistani government-owned savings bank. It works as an associated department of the Ministry of Finance’s Finance Division and is led by the Director General. Historically, National Savings’ activities have focused on gathering cash from Pakistani savers to offer non-bank financing for the government’s budget deficit. The organization provides savings products with competitive interest rates and a government guarantee on all deposits to achieve this objective. National Savings has recently played an important role in Financial Inclusion. Through digitalization, National Savings is actively enhancing its client service. It has effectively organized its data and will soon provide clients with Alternative Delivery Channels. National Savings Profit Rates.
The National Savings Organization in Pakistan goes back to 1873 when the Government Savings Bank Act was passed under the British Raj.  During the First and Second World Wars, the British government used the National Savings Bureau (NSB) to cover war-related costs. After Pakistan’s independence in 1947, the institution continued to function under the name NSB until 1953, when it was renamed the Central Directorate of National Savings (CDNS). In August 1960, the CDNS was designated an “Attached Department” of the Ministry of Finance and assigned responsibility for policy and the implementation of numerous National Savings Schemes (NSS). The Ministry of Finance established the current organization of CDNS at the beginning of 1972.
In August 2019, the government planned to transform the National Savings Organization from a government agency into a government-run enterprise. In this context, the Pakistan Savings Bill 2019 is now being drafted and completed. The prize bond system was introduced with a Rs 100 Prize Bond. Over time, the plan has been broadened. Today, Prize Bonds are available in Rs 100, Rs 200, Rs 750, Rs 1500, Rs 25000, and Rs 40000.
As of FY 2018-19, the organization oversees assets of Rs. 4,04 trillion ($18 billion), representing 25% of the country’s net savings, making it the biggest financial institution in Pakistan. It has 7 million clients, of whom 47% are female, making it the most gender-balanced financial institution in the United States. The institution determines the interest rate and revises it at its discretion to provide market-competitive goods and, therefore, inexpensive funding for the government.
The organizational structure of National Savings is comprised of directorates and branches. Islamabad’s G-6 Markaz is the location of the Central Directorate’s headquarters. Lahore, Gujranwala, Faisalabad, Karachi, Quetta, Hyderabad, Multan, Sukkur, Bahawalpur, Islamabad, Abbottabad, and Peshawar are the locations of the organization’s regional directorates. Under these regional directorates, there are 376 National Savings Centers branches around the nation.
Total investment in National Savings amounts to Rs3.4 trillion.
The company provides a variety of savings and investment products, such as prize bonds, savings certificates, and savings accounts. Most items are accessible to both residents and non-residents of Pakistan; however, certain products have limited access and must fulfill specific conditions before they are made available. These goods with limited access are emphasized in the following product list:
- Prize Bonds
- Premium Prize Bonds
- Regular Income Certificates
- Behbood Savings Certificates
- Defense Savings Certificates
- Special Savings Certificates
- Short Term Savings Certificates
- Pensioners Benefit Account
- Shuhadas Family Welfare Account
- Special Savings Account
- Savings Account
The profit rates offered by National Savings vary depending on the product type and the investment length. Below is a summary of the current profit rates for each product:
- Savings Accounts: The profit rate for regular savings accounts is 4.5% per year, while the rate for children’s savings accounts is 5% per year. The rate for senior citizens’ savings accounts is 6% per year.
- Certificates: The profit rates for certificates depend on the certificate type and the investment length. For example, the rate for a one-year Defence Saving Certificate is 5.5% per year, while the rate for a ten-year Regular Income Certificate is 8% per year.
- Prize Bonds: The profit rate for prize bonds is variable, as it depends on the number of winning bonds in each draw. However, the overall rate of return is typically around 3% per year.