New Profit Rates On National Saving Certificates
With a purpose to ensure that their money remains safe and they earn a profit on it as well, millions of people in Pakistan invest in National Savings, the Country’s largest investment & financial institution.
It operates as an autonomous body under the Ministry of Finance and is managed by the Central Directorate of National Savings (CDNS). For the year 2020, national saving certificates rates has been revised due to current to incentivize people to invest more these schemes.
Having 376 nationwide branches, National Savings offers a lucrative opportunity through its saving products to its over seven million valued investors.
Following are five Saving Certificates, the institution offers to investors and assures them a guaranteed profit on all deposits;
- Defence Savings Certificate (DSC)
- Special Savings Certificate (SSC)
- Regular Income Certificate (RIC)
- Behbood Savings Certificate (BSC)
- Short Term Savings Certificate (STSC)
Defence Savings Certificate (DSC):
Eligibility to Invest in Defence Savings Certificate
- Pakistani nationals
- Non-resident Pakistanis
- Foreign Nationals
- Institutions may also invest their employees’ related funds i.e. pension.
How to Purchase DSC?
Fill out the SC-I (Application Form) and purchase the Certificate from any of the following;
- National Savings Centre
- Pakistan Post Office (PPO) or authorized branches of Scheduled Banks
- State Bank of Pakistan
Maturity Period
- 10 years
Profit Paid
- On Maturity
Current Profit Rate
- 10.40%
Modes of Deposits
- Cash, Cheque, Draft & Pay-order
Investment Limit
- Minimum amount of Rs 500
- No limit in maximum investment
Taxes on Defence Savings Certificate
- For filers: 10% of the profit
- For non-filers: 17.5% of profit; however the tax will be 10% of profit is less than Rs 500,000.
Special Savings Certificate (SSC):
Eligibility to Invest in Special Savings Certificate
- Pakistani nationals
- Non-resident Pakistanis
- Foreign Nationals
- Institutions may also invest their employees’ related funds i.e. pension.
How to Purchase SSC?
Fill out the SC-I (Application Form) and purchase the Certificate from any of the following;
- National Savings Centre
- Pakistan Post Office (PPO) or authorized branches of Scheduled Banks
- State Bank of Pakistan
Maturity Period
- Three years
Profit Paid
- On completion of each period of six months
Current Profit Rate
- 11%
Modes of Deposits
- Cash, Cheque, Draft & Pay-order
Investment Limit
- Minimum amount of Rs 500
- No limit in maximum investment
Taxes on Defence Savings Certificate
- For filers: 10% of the profit
- For non-filers: 17.5% of profit; however the tax will be 10% of profit is less than Rs 500,000.
Latest profit rates on national saving certificates:
Regular Income Certificate (RIC):
Eligibility to Invest in Special Savings Certificate
- Pakistani nationals
- Non-resident Pakistanis
- Foreign Nationals
- Institutions may also invest their employees’ related funds i.e. pension.
How to Purchase RIC?
Fill out the SC-I (Application Form) and purchase the Certificate from any of the following;
- National Savings Centre
- Pakistan Post Office (PPO) or authorized branches of Scheduled Banks
- State Bank of Pakistan
Maturity Period
- Five years
Profit Paid
- On a monthly basis
Current Profit Rate
- 10.56%
Modes of Deposits
- Cash, Cheque, Draft & Pay-order
Investment Limit
- Minimum amount of Rs 50,000
- No limit in maximum investment
Taxes on Defence Savings Certificate
- For filers: 10% of the profit
- For non-filers: 17.5% of profit; however the tax will be 10% of profit is less than Rs 500,000.
Behbood Savings Certificate (BSC):
Eligibility to Invest in Special Savings Certificate
- Senior Citizens aged 60 years or above
- Widows
- Disabled
How to Purchase BSC?
- From any National Savings Centre by filling in SC-1 (Application Form)
Maturity Period
- 10 years
Profit Paid
- On a monthly basis
Current Profit Rate
- 12.24%
Modes of Deposits
- Cash, Cheque, Draft & Pay-order
Investment Limit
- Minimum amount of Rs 5,000
- No limit in maximum investment
Taxes on Defence Savings Certificate
- No Withholding Tax
Short Term Savings Certificate (STSC):
Eligibility to Invest in Special Savings Certificate
- Pakistani nationals
- Non-resident Pakistanis
- Foreign Nationals
- Institutions may also invest their employees’ related funds i.e. pension.
How to Purchase STSC?
- From any National Savings Centre by filling in SC-1 (Application Form)
Maturity Period
- Three months, six months and one year
Profit Paid
- On Maturity
Current Profit Rate
- 8.60%
Modes of Deposits
- Cash, Cheque, Draft & Pay-order
Investment Limit
- Minimum amount of Rs 50,000
- No limit in maximum investment
Taxes on Defence Savings Certificate
- For filers: 10% of the profit
- For non-filers: 17.5% of profit; however the tax will be 10% of profit is less than Rs 500,000.
For further details; visit http://savings.gov.pk/
