Short Term Savings Certificates

Short Term Savings Certificates

The Government of Pakistan introduced Short Term Savings Certificate scheme in the year 2012. The scheme has specifically been designed to meet the short term requirements of the depositors. This is 3 Months, 6 Months and 1 year maturity scheme. These certificates are available in the denominations of Rs.10,000, Rs.50,000, Rs.100,000, Rs.500,000, Rs.1,000,000/-, Rs.5,000,000/- and Rs.10,000,000/=. These certificates are pledge-able.

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. Further Institutions can also invest from Individual funds such as pension gratuity, superannuation, contributory provident funds and trust etc

These certificates can be purchased from any National Savings Centre (NSC) by filling in a prescribed form called SC-1, which is available at all NSCs free of cost. A copy of the Computerized National Identity Card (CNIC) or in case of foreign national with a copy of his/her passport or in case of institutional investor, a copy of registration certificate or letter of approval of the fund with the application form.
To download application form in editable Adobe Acrobat format, please click here.

These certificates can be purchased by depositing cash at the issuing office or by presenting a cheque/Pay order/Bank Draft.

The minimum investment limit is Rs.10,000/- and multiple thereof, however, there is no maximum limit of investment in this scheme

These Certificates shall be encashable at office of issue but not earlier than one month from the date of issue and on or before the expiry of the maturity period. However, automatic reinvestment is not allowed.

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.

In this scheme the profit is paid on maturity of respective maturity period i.e. 3 months, 6 months and 1 year At @5.56%, 5.60% and 5.62% respectively.

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 investment made in this scheme is also exempt from Zakat.