ISLAMABAD: National Savings has announced updated profit rates for Defence Savings Certificates (DSC) across various denominations, setting the rate at 11.44 percent. This scheme offers investors a secure return backed by the Government of Pakistan for a maturity period of ten years.
For an investment of Rs 100,000, the projected returns over the ten-year term are as follows: Rs 107,000 in the first year, Rs 115,000 in the second, Rs 124,000 in the third, Rs 135,000 in the fourth, Rs 148,000 in the fifth, Rs 164,000 in the sixth, Rs 183,000 in the seventh, Rs 206,000 in the eighth, Rs 235,000 in the ninth, and Rs 270,000 upon maturity in the tenth year.
Meanwhile, for a larger investment of Rs 500,000, the expected profits accumulate to Rs 535,000 in the first year, Rs 575,000 in the second, Rs 620,000 in the third, Rs 675,000 in the fourth, Rs 740,000 in the fifth, Rs 820,000 in the sixth, Rs 915,000 in the seventh, Rs 1,030,000 in the eighth, Rs 1,175,000 in the ninth, and Rs 1,350,000 at the end of the tenth year.
Defence Savings Certificates are available in denominations ranging from Rs 500 to Rs 1,000,000. The scheme is accessible to adult Pakistani citizens, overseas Pakistanis, and holders of valid NICOP or POC cards. Minors may also invest either independently with a guardian or jointly with adults or other minors. Joint accounts can include two adults or an adult with a minor, and payments can be collected by any or all named holders.
Purchases of Defence Savings Certificates can be made at any National Savings Centre, authorized branches of scheduled banks, and the State Bank of Pakistan.
In a significant development regarding taxation, profits from these certificates are subject to deductions in accordance with the State Bank of Pakistan’s policies. The withholding tax rate is set at 15 percent for filers, while non-filers face a higher rate of 35 percent. Additionally, Zakat is deducted from the profits as applicable.
