SPECIAL SAVINGS CERTIFICATES (Registered) of NATIONAL SAVINGS

Overview of Special Savings Certificates (SSCs)

Key Features

1. Type: Investment Certificates
2. Denominations: Available in amounts ranging from PKR 500 to PKR 1,000,000.
3. Launch Date: Initiated on February 4, 1990.
4. Interest Payout: Distributed bi-annually.
5. Duration: 3-year term.
6. Eligibility: Open to the general populace.
7. Investment Methods: Accepts Cash, Cheque, Draft, and Pay Order.
8. Investment Ceiling: Starts at a minimum of PKR 500 with no upper limit.

Eligibility for Investment

SSCs are accessible to Pakistani citizens, both residing within the country and abroad. Eligible investors include individuals, minors, or two adults jointly, with the option for payouts to be collected jointly (Joint-A) or by any one of the account holders (Joint-B). Adults are also permitted to buy SSCs in the name of minors, whether individually or jointly.

Investment Opportunity

The SSC scheme caters specifically to the investment needs of the middle and small investor segments, offering a bi-annual return on investments. This unique financial product was introduced with the aim of facilitating a broader range of investors seeking reliable returns.

Earnings Distribution

Investors receive profit payouts every six months, aligning with the scheme’s commitment to providing steady income streams.

How to Invest?

Prospective investors can purchase SSCs at any National Savings Centre (NSC), authorized commercial banks, or directly through the State Bank of Pakistan (SBP). The application process involves completing an SC-1 form, available at no charge across all issuing entities.

Required Documentation

• For Adult Pakistani Residents: A photocopy of the Computerized National Identity Card (CNIC) is needed.
• For Overseas Pakistanis: A photocopy of either the National Identity Card for Overseas Pakistanis (NICOP) or the Pakistan Origin Card (POC) is required.
• For Minors: A photocopy of Form B or the Child Registration Certificate (CRC) issued by NADRA is necessary.

Mode of Payment

Certificates can be immediately obtained through cash payments. Alternatively, purchases made via cheque, draft, or pay-order will be processed upon the financial instrument’s clearance, with the certificate's issue date matching the clearance date.

Encashment Policy

Certificates can be cashed at any time post-purchase, although no profit will be awarded if encashed before six months. Notably, certificates bought or reinvested post-November 15, 2010, cannot be reinvested upon maturity.

Return on Investment

The current annual profit rate stands at 16%, reflecting the scheme’s competitive return offerings.

Taxation and Zakat

• Tax Filers: Active Tax Payer List (ATL) members are subjected to a 15% withholding tax on profits.
• Non-Filers: Individuals not on the ATL incur a 30% withholding tax rate on profits.
• Zakat: Applicable as per the prevailing regulations.

FAQs

How often do SSCs pay out profits? SSCs distribute profits bi-annually, providing a steady income stream for investors.

Can SSCs be purchased in the name of minors? Yes, adults can purchase SSCs on behalf of minors, either individually or jointly.

What is the encashment policy for SSCs? SSCs can be encashed at any time after purchase. However, encashing before six months yields no profit, with no service charge deductions for encashment.