Special Savings Account

Special Savings Account

A three years maturity scheme introduced in February, 1990, Profit is paid on the completion of each period of six months or on completion of three years, as the case may be.

The account can be opened by Pakistani National as well as Foreign National being an individual in his name or in the name of minor(s) dependent on him or by two individuals jointly in their names. Institutions may also invest individual funds such as pension, gratuity, superannuation, contributory provident funds and trusts etc.

These accounts can be opened at any National Savings Centre (NSCs) and Pakistan Post Office (PPO) by filling in a prescribed form calledDA-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 may be attached with the application form.

The accounts can be opened by depositing cash/cheque/draft  at the issuing office in case of deposit of cash the passbook and withdrawal slip shall immediately be issued on the same date. However, in case of deposit through cheque the account shall be opened from the date of realization of the cheque/draft after receipt of the clearance advice.

The minimum investment limit in this scheme is Rs.500/-. There is not maximum limit, however, the deposits are required to be made in multiple of Rs.500/-.

The amount be withdrawn at any time after the date of its deposit. However, no profit is payable in case the withdrawals are made before completion of 6 months of such deposit.
Payment from accounts may be allowed through a person duly authorized (in writing) by the investor on authority letter under his signatures provided that:-
(a). the signatures of the authorized person are also attested by the investor on the letter of authority;
(b). the Centre Incharge is personally satisfied that the authorized person is genuine and the Withdrawal Slip and the letter of authority bear genuine signatures of the investor;
(c). the receipt of the amount is got acknowledged from the authorized person on reverse of the withdrawal slip personally by the Centre 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 then rupees five hundred thousand, the rate shall be 10%.The Zakat is collected at source as per rules at the time of withdrawal of principle amount. However, Zakat is not collected in case of reinvestment.