Defence Savings Certificates—national savings update profit rates

Karachi: The federal government on Saturday reaffirmed its commitment to long-term investors by maintaining the attractive returns offered through Defence Savings Certificates (DSCs), first introduced years ago.

National Savings, also known as Qaumi Bachat Bank, has recently updated the profit rates for various investment certificates, including DSCs, following the recent budget announcement for the Financial Year 2024-25.

The profit rate for Defence Savings Certificates has remained steady at 14.39 percent since May 2024.

Tax and Zakat Deductions:

In line with State Bank of Pakistan regulations, taxes and Zakat on DSC profits are deducted accordingly. Filers face a withholding tax rate of 15 percent, whereas non-filers are subject to a 30 percent tax rate.

Investment Details:

Defence Savings Certificates are accessible to both Pakistani residents and overseas Pakistanis, with a maturity period of 10 years. They 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.

Profit Rate overview for August 2024:

The profit rate for Defence Savings Certificates is set at 14.39%. For an investment of Rs.100,000 in August, the returns are projected as follows:

1 Year: Rs.112,000

2 Years: Rs.125,000

3 Years: Rs.139,000

4 Years: Rs.155,000

5 Years: Rs.175,000

6 Years: Rs.200,000

7 Years: Rs.230,000

8 Years: Rs.265,000

9 Years: Rs.308,000

10 Years: Rs.363,000