It has been decided to introduce a minimum profit rate of 5.0% p.a on all categories of savings/ PLS saving deposits (including any other profit bearing deposit with no fixed maturity) to all existing and new depositors, effective 1st June, 2008.

2.) The profit payable on savings/ PLS savings deposits shall be calculated on at least the minimum monthly balances, regardless of bank’s own minimum balance requirements. However, banks are free to pay profit rate on daily product or on average balance basis. Nevertheless, the minimum floor profit rate on all savings/ PLS savings will be 5.0% pa.

3.) The above instructions are issued in exercise of the powers vested upon the State Bank of Pakistan under the Banking Companies Ordinance, 1962. Any violation of the above instructions will render the bank liable for punitive action under the relevant provisions of the aforesaid law.

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