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Frequently asked questions

Yes,The profit accrued on  BSC/PBA and withdrawals from Savings Account can be collected through commercial banks by depositing profit coupons (duly filled in and signed) in account of investor concerned.Further, the accrued profit can also be collected through  an agent duly authorized by the certificate / account holder at his/her own risk and subject to the satisfaction of the Officer Incharge.

Subject to the rules of the respective schemes, the  nominee may opt for encashment of the certificates or transfer of the same in his/her name, however, in the former case the nominee shall be required to furnish;

  1. An application on plain paper containing three specimen signatures of himself/herself duly verified to the satisfaction of the Officer Incharge.
  2. Death certificate of the deceased holder.
  3. Attested photocopies of CNICs of both the deceased holder and himself.
  4. In case the certificates are intended to be  transferred to nominee, an application on SC-4 supported by relevant documents shall be required in addition to above requirements.
  5. Original Certificates.

All National Savings Schemes (NSS) except Savings Account are term/fixed deposits; hence, the agreement made at the time of investment remains valid upto the maturity of that particular deposit.  Any change in profit either upwards or downwards on later issues doesn’t affect the existing investments.  However, if any investor intends to avail new rates, he/she can withdraw the investment and on payment of subject to nominal service charges (if applicable) and then invest the same on new rates.Further in case of PBA & BSCs, if the revised rates are higher then existing one then the new higher rates will be applicable on the existing investment having lower rates.

No, at present the widowers cannot invest in Bahbood Savings Certificates.  However, after attaining 60 years of age, they become automatically eligible being senior citizens.

The widows and the senior citizens of Pakistan aged 60 years or above can invest in Bahbood Savings Certificates.

Yes, the investment made in National Savings Schemes (NSS) is fully guaranteed by the Government of Pakistan.

The National Savings Schemes provide the facility of joint investment upto two persons.  There are two different types i.e. Joint-A and Joint-B.  In case of Joint-A deposits, the encashment is payable to the holders Jointly or to either with the written consent of  the other; while in case of Joint-B, either of the investors can withdraw/encash the profit principal under his/her own signatures only.

A purchaser can nominate an agent for collection of profit / principal at his personal risk after issuing a power of attorney duly attested by the Pakistani missions working in that country subject to entire satisfaction of the Officer Incharge of National Savings Centre concerned.

Investment from abroad can be made through Bank Draft/Cheque in any   foreign currency in favour of any of our office(s), alongwith the application form duly filled in and the copies of Passport and National identity Card. The Bank Drafts got prepared in Pak rupee from abroad are cleared much earlier than those in foreign currency. It would be more proper if these are payable at the same city where the investment is intended to be made.

The investment in the National Savings Schemes is maintained and expressed   in Pak rupee only. Amount received in foreign currency is converted into Pak   rupee on the prevailing official exchange rate through normal Banking channels for investment in National Savings Schemes. Moreover, the principal and profit accrued on a certificate issued against foreign exchange received through remittance shall be payable abroad to the purchaser in foreign exchange if so desired by the investor. For the purpose, the payable amount shall be converted into the desired currency at the official exchange rate prevailing at the time   of conversion/payment.

The prize on any prize winning Prize Bond can be claimed within six years reckoned from the date of that particular draw result. No claim, after the said period of six years is entertained.

The prize bonds can be redeemed on the face value and there is no deduction whatsoever on the encashment of a prize bond itself irrespective of the amount involved.

The prize money upto Rs.1,250/- can be claimed from any National Savings Centre, branches of authorized scheduled banks or branches of State Bank of Pakistan. Prize money exceeding Rs.1250/- can be claimed only from the branches of State Bank of Pakistan.

To claim the prize money, a duly filled application form (PB-1) along with a photo copy of the CNIC, a photo copy of the winning prize bond duly signed on the back along with original Prize Bond is to be presented in the concerned office. However, the prize money is subject to 15% withholding tax for Filers and 20% for Non-Filers.

With the exception of BSC / PBA, profit on all NSS is subject to deduction of withholding tax under the Income Tax Ordinance, 2001.

The tax at the rate of 20% in case of non-filers and 15% in case of filers against the prize is deducted at source at the time of payment of prize money in accordance with the Income Tax Ordinance, 2001 as amended from time to time.

Zakat is collected from investment made in Defence Savings Certificates, Special Savings Certificates (Regd), Savings Account / Special Savings Account.  In case of Defence Savings Certificates, the Zakat is collected @ 2.50% on the accumulated value of the certificate(s) (i.e. principal + profit) as on the Zakat valuation date preceding the date of encashment.  Whereas, in case of Special Savings Certificates (Regd),Whereas, on Savings Account, Zakkat @ 2.5% is deducted on 1st of Ramdan each year and Special Savings Account the Zakat is collected @ 2.50% of the principal of that particular maturity.

Yes, there is definitely a time limit.  The declaration can easily be submitted at the time of investment or after that, but it should be furnished before 1st Shabban so as to make it effective for the coming Ramadan.  Any declaration submitted after the 1st Shabban will be applicable for the next year and not for the current Islamic calendar year.

Any assets acquired against payment in foreign currency or maintained in foreign currency are to be treated as exempt from compulsory collection of Zakat. An account, which is opened with foreign currency and out of which an amount can be withdrawn in foreign currency or local currency does not change the nature of the account.

No. Zakat is only collected at the time of actual encashment or in case where the reinvestment  facility is not available.

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