Short Term Savings Certificates

Short Term Savings Certificates

The Government of Pakistan introduced Short Term Savings Certificate scheme on 1st July 2012. The scheme has been specifically 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 profit 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 with 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 free of cost at all NSCs . A copy of the Computerized National Identity Card (CNIC), in case of overseas Pakistanis, a photocopy of National identity card for Overseas Pakistanis (NICOP) or Pakistan Origin Card (POC) or for a minor, a photocopy of Form B or child Registration Certificate (CRC) as issued by NADRA or incase of institutional investors an attested copy of NTN certificate or Institutional Registration Certificate (IRC) or in case of foreign national with a copy of his/her passport is required to be attached 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/Draft. The certificates shall immediately be issued on receipt of cash. However, in case of deposit through cheque/Pay order/Draft the certificates shall be issued with effect from the date of realization of  the cheque/Pay order/Draft after receipt of the clearance advice.

The minimum investment limit is Rs.10,000/- 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.The certificates issued/purchased/re-invested on or after 15.11.2010 shall not be re-invested on maturity.

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 , Signature of 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 Officer Incharge.

Under Section 151 of Income Tax Ordinance 2001 the rate of tax to be deducted 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 less than rupees five hundred thousand , the rate shall be 10%. The investment made in this scheme is exempt from Zakat.