Defence Savings Certificates (DSCs) are a popular investment scheme offered by the National Savings Centres, also known as Qaumi Bachat Bank, in Pakistan.
Introduced decades ago, DSCs were designed to meet the financial needs of long-term investors by providing a secure and profitable investment opportunity with a maturity period of 10 years.
In May 2024, the National Savings announced revised profit rates for various investment certificates, including DSCs. The profit rate for Defence Savings Certificates was set at 13.57% for September, providing a lucrative return on investment over the 10 years.
Eligibility and Denominations
Both Pakistani nationals and overseas Pakistanis are eligible to invest in Defence Savings Certificates. These certificates are available in denominations of Rs.500, Rs.1,000, Rs.5,000, Rs.10,000, Rs.50,000, Rs.100,000, Rs.500,000, and Rs.1,000,000, making them accessible to a wide range of investors.Profit Schedule for Defence Savings Certificates
The profit rate of 13.57% allows investors to earn substantial returns on their investments. For example, if Rs. 100,000 is invested, the payable amount (principal + profit) will be:- Rs.112,000 after 1 year
- Rs.125,000 after 2 years
- Rs.139,000 after 3 years
- Rs.155,000 after 4 years
- Rs.175,000 after 5 years
- Rs.200,000 after 6 years
- Rs.230,000 after 7 years
- Rs.265,000 after 8 years
- Rs.308,000 after 9 years
- Rs.363,000 after 10 years
Tax and Zakat Deductions
Profits from Defence Savings Certificates are subject to taxes and Zakat as per the State Bank of Pakistan's policies. The withholding tax rate is 15% for filers and 30% for non-filers.Defence Savings Certificates remain a reliable choice for those looking to secure their financial future with a stable investment.
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