SHORT TERM SAVINGS CERTIFICATES OF NATIONAL SAVINGS PAKISTAN

 

1. Overview of Short-Term Savings Certificates

Short-Term Savings Certificates (STSCs) were introduced on July 1, 2012. They are designed for people looking for quick investment options with 3, 6, or 12 months of maturity. You can invest as little as Rs. 10,000 or as much as you want, without a maximum limit. These certificates are available to everyone and can be used as a secure pledge for your investment.

Table of Contents

1. Overview of Short-Term Savings Certificates
2. Who Can Invest in These Certificates?
3. How to Buy Short-Term Savings Certificates
4. Documents Needed for Purchase
5. Investment Details and Profit Collection
6. Profit Rates and Taxes on Investments
7. Frequently Asked Questions (FAQs)

2. Who Can Invest in These Certificates?

Anyone from Pakistan, whether living in the country or abroad, can invest in STSCs. This includes single adults, minors, or two adults together. They can choose to manage their investment jointly or have one person in charge.

3. How to Buy Short-Term Savings Certificates

You can buy these certificates at any National Savings Centre by filling out a free SC-1 form. Payments can be made with cash, check, draft, or pay order. If you pay with cash, you get the certificate immediately. For other payment methods, you'll get the certificate once the payment clears.

4. Documents Needed for Purchase

When buying a certificate, adults need to show their CNIC. Overseas Pakistanis should provide their NICOP or POC, and for minors, a Form B or CRC from NADRA is required.

5. Investment Details and Profit Collection

The minimum investment is Rs. 10,000, and there's no maximum. You can cash in your certificate at the issuing office no sooner than one month after it's issued, but you'll only get profit after the maturity period ends.

6. Profit Rates and Taxes on Investments

The annual profit rate for these certificates is 20.34%. Taxes on the profit depend on whether you're on the Active Tax Payer List (ATL). Filers pay 15%, and non-filers pay 30%. Investments in STSCs are not subject to Zakat.

Frequently Asked Questions (FAQs)

Q1: Can I invest in STSCs if I'm living outside Pakistan?
A1: Yes, both residents and non-residents of Pakistan can invest in STSCs.

Q2: What is the minimum amount required to invest in STSCs?
A2: The minimum amount for investment is Rs. 10,000.

Q3: Are there any tax exemptions on STSCs?
A3: Yes, the investment in STSCs is exempt from Zakat, but profits are subject to withholding tax based on your filing status.