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. This is 10 years' maturity scheme with built in feature of automatic reinvestment (Further, certificates purchased on or after 15-11-2010 can not be automatically reinvested) after the 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.Institutions may also invest individual funds such as pension, gratuity, superannuation, contributory provident funds and trusts etc.

How To Purchase.

These certificates can be purchased from any National Savings Centre (NSC), Pakistan Post Offices (PPO), Authorized branches of Scheduled Banks and State Bank of Pakistan (SBP) by filling in a prescribed form called SC-1, which is available at all the above offices of issue free of cost.    A copy of the Computerized National Identity Card (CNIC) or in case of a foreign national, a copy of the Passport is required to be attached with the application form. 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. The certificates shall immediately be issued on receipt of cash. However, in case of deposit through cheque the certificates shall be issued from the date of realization of the cheque after receipt of the clearance advice.

What Is The Investment Limit.

The minimum investment limit is Rs.500/-, however, there is no maximum investment limit in this scheme.

What About Redemption.

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


The encashment of certificate(s) may be allowed through a person duly authorized (in writing) by the investor on an authority letter under his / her signature provided that:--

(a). the signatures of the authorized person are attested by the investor on the letter of authority;

(b). the Officer Incharge of the NSC is personally satisfied that the authorized person is genuine and the certificate(s) is / are properly discharged under genuine signatures and both the signatures i.e. on the back of the certificate(s) and the letter of authority tally 100% with the specimen on the investor available on the record.

(C). The receipt of the amount is got acknowledged from the authorized person on the reverse of certificate(s) personally by the Centre Incharge.

What is the return.

In this scheme the profit is paid on maturity or encashment for completed years. Every Rs.100,000/- will become Rs.105,000/-, Rs.111,000/-, Rs.118,000/-, Rs.126,000/-, Rs.135,000/-, Rs.145,000/-, Rs.157,000/-, Rs.171,000/-, Rs.187,000/- and Rs.207,000/- on completion of 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10 years, respectively. These rates are effective from 1st Oct, 2016. The average compound rate of return on maturity presently works to 7.54% p.a. For any other time period rates table is also available on website.

Tax & Zakat Status.

Exemption of deduction of Withholding tax has been withdrawn w.e.f 01-07-2013 on profit of investment upto Rs.150,000 . W.e.f. 1st July,2014 the rate of tax to be deducted under Section 151 of Income Tax Ordinance 2001 shall be 10% of the yield or profit for Filers and 17.5% of the yield or profit paid for Non-Filers. Provided that for a non-filer, if the yield or profit paid is rupees five hundred thousand or less, the rate shall be 10%. The Zakat is collected at source as per rules.


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