GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE

NATIONAL SAVINGS CENTRE

KAHROR PACCA

DEFENCE SAVINGS CERTIFICATES

The Government of Pakistan introduced Defence Savings Certificate scheme in the year 1966. The scheme has specifically been designed to meet the future requirements of the depositors. It is a ten years’ maturity scheme with built in feature of automatic reinvestment on maturity. These certificates are available in the denominations of  Rs.500, Rs.1000, Rs.5,000, Rs.10,000, Rs.50,000, Rs.100,000, Rs.500,000 and Rs.1,000,000/=.

Who Can Invest

These certificates can be purchased by a single adult, a minor, two adults in their joint names with the options of payable to the holders jointly (Joint-A ) or payable to either (Joint-B). An adult can also purchase these certificates on behalf of a single minor, two minors jointly or himself/herself and a minor jointly. In addition to  individual investors, the following institutions are also allowed to invest in the scheme:

1. Registered Charities (Non-profit bodies).
2. Public Sector Enterprises excluding Banks.
3. Private Educational & Health Institutions.
4. Employees Old Age Benefit Institutions (EOBIs).
5. Private Corporate Sector registered with the SECP excluding Banks.
6. Non-Bank Financial Institutions (NBFIs) excluding Insurance Companies.

How To Purchase

These certificates can be purchased from any National Savings Centre (NSC), Pakistan Post Offices (PPOs), State Bank of Pakistan (SBP) and authorized Scheduled Bank branches by filling in a prescribed form called SC-1, available at all the above offices of issue, free of cost, accompanied with a photocopy of the computerized National Identity Card (CNIC) or in case of overseas Pakistanis, a photocopy of National Identity Card for overseas Pakistanis (NICOP) or Pakistan Origin Card (POC) or in case of a minor, a photocopy of Form-B or Child Registration Certificates (CRC) or in case of a foreign national, a photocopy of the Passport. To download application form in editable Adobe Acrobat format, please click here.

Mode of Deposit
These certificates can be purchased by depositing cash at the issuing office or by presenting a cheque / draft. The certificates shall immediately be issued on receipt of cash. However, in case of deposit through cheque / draft, the certificates shall be issued from the date of realization of the cheque / draft after receipt of the clearance advice.
What is The Investment Limit
The minimum investment limit is Rs.500/-, however, there is no maximum limit of investment in this scheme.
What About Redemption

These certificates are encashable at par any time. However, no profit is payable if the encashment is made before completion of one year reckoned from the date of purchase.

What is the return

The profit is paid on maturity or encashment for completed years. Every Rs.100,000/- will become Rs.108,000/-, Rs.118,000/-, Rs.129,000/-, Rs.142,000/-, Rs.158,000/-, Rs.177,000/-, Rs.201,000/-, Rs.230,000/-, Rs.265,000/- and Rs.315,000/- on completion of 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10 years, respectively. These rates are effective from 24th June, 2008. Presently the average compound rate of return on maturity works to 12.15% p.a. For previous rates tables please click here.

 Tax & Zakat Status

At present, the profit earned is exempt from withholding tax, if the total investment in the scheme by the investor(s) does not exceed Rs.150,000/-.  However, withholding tax @ 10% is deductible at source on the profit earned, if the total investment by the investor(s) exceeds Rs.150,000/-. The Zakat is collected on the date of actual encashment and not on continued reinvestment on maturity @ 2.5% of the principal amount in respect of such encashment at it stood on the valuation date immediately preceding such encashment.

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