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 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.
In addition to above individual investors, the following institutions
are also allowed to invest in the scheme, subject to their registration
under the relevant law for the time being in force:
a. Registered
Charities (Non-profit bodies).
b. Public Sector
Enterprises excluding Banks.
c. Private
Educational & Health Institutions.
d. Employees Old Age
Benefit Institutions (EOBIs).
e. Private Corporate
Sector registered with the SECP excluding Banks.
f. Non-Bank
Financial Institutions (NBFIs) excluding Insurance Companies.
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 limit of investment 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.
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.108,000/-, Rs.118,000/-, Rs.129,000/-, Rs.142,000/-, Rs.158,000/-,
Rs.177,000/-, Rs.201,000/-, Rs.230,000/-, Rs.265,000/- and Rs.315,000/-
on completion of 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10 years, respectively.
These rates are effective from 24th June, 2008. The average compound
rate of return on maturity presently works to 12.15% p.a. For any other
time period rates table is also available on website.
Tax & Zakat Status.
At present, the profit earned is exempt from
withholding tax, if the total investment in the scheme by the investor(s)
does not exceed Rs.150,000/-. However, withholding tax @ 10% is
deductible at source on the profit(s) earned if the total investment
exceeds Rs.150,000/- by the investor(s). The Zakat is collected at
source as per rules.
