Discount rate is directly linked to lending and would make bank loans cheaper if KIBOR also falls with discount rate(Expected but not necessary). There would be no impact on already invested NSCs but rate of return for new investments would fall down. Ideally cheaper loans and low saving rates would give some boost to real estate market. The only issue here is that discount rate has been artificially brought down without taking current inflation rate into consideration which makes it difficult for SBP to maintain/further decrease this discount rate for a long period.
The banks offering 16% are HMB, BAH but for fixed deposit certificates of 06 years.
Azam certificates of KESC offer 15% for 03 year investment.
Behbood certificates of NSC offer real return of above 16% for 10 year certificates(Maximum investment 03 Mn only for aged above 60 year)
Javaid replied on Tuesday, August 14, 2012 09:11 AM
Sir lots of info regarding what Banks and NSC are offering,, are wrong,, can you please do the home work before you write some thing for sure. Thank you. |
Malik replied on Tuesday, August 14, 2012 06:49 PM
Please reverify the information from below links and see whats wrong. You should actually do factual analysis otherwise we will be stuck with Water kits made Waqar Khan.
http://habibmetro.com/IzafaCertificates.htm
http://www.azmcertificate.com/?page_id=4
http://www.savings.gov.pk/bsc_profit_rates.asp
The current rate for BSC is 14.64% and since ther eis no tax deducted on theses so adding tax factor of 10%(1.46%)makes it 16%. Historical rates have even remain higher then 16%. |
ua replied on Wednesday, August 15, 2012 05:32 AM
Although Habib Metro is advertising 16.67% but in effect, the rate they are giving is 12%. KESC is offering high rate but carries a risk of default. BSC is only for 60+ citizens. DSC (which anyone can buy) is giving return of 12.68%. |
