Qaumi Bachat Bank Defence Savings Certificates profit rate decreased – Feb Update

In Karachi, the Central Directorate of National Savings (CDNS) has revised the rates of return on different schemes provided by National Savings, or Qaumi Bachat Bank.

The latest adjustment marks the third decrease in the last two months, with a reduction of up to 72 basis points. The profit rate for Defense Savings Certificates, as per the official website, now stands at 14.1%.

Both Pakistani nationals and overseas Pakistanis are eligible to purchase defense certificates. These certificates have a maturity period of 10 years and 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.

Customers can acquire a Defense Savings Certificate by depositing cash, a check, a draft, or a pay order at the issuance office. Although the certificates can be cashed in at any time following the purchase date, no profit is paid if encashment occurs before one year. Taxes are levied on these certificates.

Defense Savings Certificates Profit Rate February 2024

The bank has recently adjusted the profit rates for its various products, including defense savings certificates. As per the latest update, the profit rate for Defense Savings Certificates is now set at 14.1%.

Payable Amount (Principal + Profit) On Investment of Every Rs. 100,000

First year: Rs112,000

2 Years                Rs125,000

3 years                Rs139,000

4 years                Rs155,000

5 Years                Rs175,000

6 Years                Rs200,000

7 Years                Rs230,000

8 Years                 Rs265,000

9 Years                 Rs308,000

10 Years               Rs360,000

Defense Savings Certificates Tax/Zakat Deduction

The tax deduction rates are as follows:

For filers and individuals listed on the Active Taxpayer List (ATL), the withholding tax rate will be 15% of the yield or profit, regardless of the investment date or profit amount.

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For non-filers, individuals not listed in the Active Taxpayer List (ATL), the withholding tax rate will be 30% of the yield or profit, regardless of the investment date or profit amount.