Islamabad:

The federal government has reduced interest rates on various national savings schemes by up to 1 percent after a decline in inflation rate.

According to an official review, the new rates come into force from May 21, 2025.

After the 1 percent cut, the interest rate on the savings account is calculated to 9.5 percent. In addition, the interest rate on a special savings certificate was reduced 30 basic points to 10.9 percent. The interest rate on the regular income certificate was reduced by 18 basic points to 11.52 percent.

The government also cut the interest rate on the defense savings certificate by 21 basic points to 11.91 percent.

In addition, the interest rate on Bahbod Saving Certificate, Pensions Benefit Account and Shuhadah Family Account was reduced by 24 base points to 13.4 percent.

National Saving officials said the government had reduced interest rates for seeing the inflation rate and fiscal policy.